Digital technology deployment and firm resilience: Evidence from the COVID-19 pandemic

Lixu Li, Zhiqiang Wang, Fei Ye*, Lujie Chen, Yuanzhu Zhan

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

45 Citations (Scopus)

Abstract

Although many firms are aggressively deploying diverse digital technologies (DTs) at inter- and intra-organizational levels, not all firms have achieved the anticipated resilience, especially in the face of supply chain disruptions caused by “black swan” events such as the COVID-19 pandemic. To demystify this phenomenon, we draw on the asset orchestration perspective to investigate how breadth (i.e., the scope) and depth (i.e., the scale) of DT deployment influence a firm's resilience to supply chain disruptions. Survey data from 162 Chinese manufacturing firms show that the depth of DT deployment exerts a positive effect on firm resilience. Interestingly, the breadth has a non-significant effect on firm resilience. Moreover, while the breadth and depth of DT deployment both enhance supply chain coordination, supply chain coordination mediates only the relationship between DT deployment depth and firm resilience. Finally, market acuity positively moderates the relationship between supply chain coordination and firm resilience. We contribute to the literature by providing new theoretical explanations for the inconsistency in the reported relationship between technology deployment and resilience. Our study also helps firms reevaluate their DT deployment.

Original languageEnglish
Pages (from-to)190-199
Number of pages10
JournalIndustrial Marketing Management
Volume105
DOIs
Publication statusPublished - Aug 2022

Keywords

  • Asset orchestration perspective
  • Digital technologies
  • Market acuity
  • Resilience
  • Supply chain coordination

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