Geographic proximity and supply chain Resilience: Unravelling their complex dynamics in the digital age

In an era marked by increasing uncertainty characterised by natural disasters, geopolitical tensions, and pandemics like COVID-19, this study explores the intricate relationship between geographic proximity and supply chain resilience. Integrating insights from economic geography, strategic management, and supply chain management, this study posits an inverted U-shaped relationship. While geographic proximity enhances supply chain operations by leveraging economies of scale, specialisation, cost reduction, and improved communication, excessive proximity can create a lock-in effect, heightening systemic vulnerability. Furthermore, this study examines the moderating role of digital innovation in addressing challenges associated with geographic dispersion. Using data from Chinese manufacturing firms, the findings validate the proposed hypotheses. This study contributes to the literature by emphasising the critical role of spatial factors, enriching the conceptual framework of supply chain resilience, and highlighting the transformative impact of digital innovation in enhancing supply chain adaptability and robustness.