Digital transformation in the blockchain era: Balancing efficiency and resilience in operations management

Nowadays, blockchain and other disruptive digital technologies have driven corporate digital transformation (DT) and empowered traditional business processes for achieving high-quality development. DT is considered an effective way for gaining a competitive advantage by incentivizing innovation. However, theoretical and empirical mechanisms behind the effect of DT on corporate innovation remain unclear from the perspective of operations and supply chain management (OSCM). To fill this gap, we use panel data of China's A-share listed companies from 2010 to 2020 and employ a two-way fixed effect model to uncover the relationship between DT and corporate innovation. Our findings suggest that DT can significantly improve innovation outcomes. Sub-technology regression analysis reveals that artificial intelligence (AI), big data, cloud computing, and digital applications positively affect corporate innovation in terms of quantity and quality. Surprisingly, joint effect analysis shows that the interaction term coefficient between blockchain and AI is significantly negative, indicating a competitive relationship between these two technologies. Moreover, firms with higher information transparency and lower market competition are more adaptable during DT and thus generate higher innovation returns compared with their counterparts. Mechanism tests indicate that digitalization can stimulate innovation through balancing efficiency and resilience. Specifically, DT reduces resource misallocation and waste, which in turn enhances the resource allocation efficiency of firms. Information sharing supported by digital platforms improves firms' visibility and velocity to market environments, ensures the continuity and stability of business operations, and ultimately improves organizational resilience. These findings shed light on the substantial potential of the effect of blockchain and other disruptive digital technologies from the perspective of OSCM and provide insights for promoting the digitalization of enterprises.