Version 1
: Received: 2 September 2024 / Approved: 3 September 2024 / Online: 3 September 2024 (07:35:17 CEST)
How to cite:
Hao, X.-L.; Chen, X.-Y.; Wang, F.-T. How Government Subsidies Facilitate Digital Transformation of Suppliers. Preprints2024, 2024090192. https://doi.org/10.20944/preprints202409.0192.v1
Hao, X.-L.; Chen, X.-Y.; Wang, F.-T. How Government Subsidies Facilitate Digital Transformation of Suppliers. Preprints 2024, 2024090192. https://doi.org/10.20944/preprints202409.0192.v1
Hao, X.-L.; Chen, X.-Y.; Wang, F.-T. How Government Subsidies Facilitate Digital Transformation of Suppliers. Preprints2024, 2024090192. https://doi.org/10.20944/preprints202409.0192.v1
APA Style
Hao, X. L., Chen, X. Y., & Wang, F. T. (2024). How Government Subsidies Facilitate Digital Transformation of Suppliers. Preprints. https://doi.org/10.20944/preprints202409.0192.v1
Chicago/Turabian Style
Hao, X., Xing-Yu Chen and Fu-Tao Wang. 2024 "How Government Subsidies Facilitate Digital Transformation of Suppliers" Preprints. https://doi.org/10.20944/preprints202409.0192.v1
Abstract
Resource and capacity constraints are common challenges for suppliers in digital transformation. This study examines the impact of government subsidies on supplier digital transformation from the perspectives of supply chain diffusion and the local government competition, with supply chain relationship data from A-share listed companies spanning 2010 to 2021. The findings indicate that: government subsidies promote suppliers to expand their diversified downstream customer base, which will boost supplier digital transformation. However, the spillover effect within the same region is higher than that across regions. The heterogeneity analysis results indicate that the effect of government subsidies becomes increasingly apparent as the opportunistic risk escalates; conversely, the impact of such subsidies is considerably constrained by heightened systemic risk. The higher the human capital of suppliers and the smaller the digital divide between suppliers and customers, the better the effect of suppliers receiving innovation diffusion. Further analysis reveals that local government subsidies to upstream suppliers reduce the proportion of downstream local customer purchases outside the jurisdiction, thereby hindering cross-regional spillover effects. This article enriches the research on the promotion mechanism of enterprise digital transformation and the efficiency loss of market segmentation, providing some reference for optimizing local government subsidy behavior.
Keywords
Government subsidies; Supply chain configuration; Digital transformation; Local government competition
Subject
Business, Economics and Management, Business and Management
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
