ABSTRACT The rapid advancement of digital technology has stimulated collaboration between core companies and suppliers to pursue innovation activities. However, a theoretical framework is necessary to explain the impact of cooperative partners’ heterogeneity on the digital technology collaborative innovation performance in the supply chain. This study employed a multi-case analysis to investigate the collaborative innovation process of four Chinese case companies with their suppliers. Based on interviews and analyses, this study found that cooperative partners’ heterogeneity influences the digital technology collaborative innovation performance through supplier empowerment. Aligned strategic objectives, similar digital technology maturity, and complementary digital resources help achieve supplier empowerment and thus promote the performance improvement of digital technology collaborative innovation, such as digital technology R&D, resource access, and process improvement.