Supply chain innovation announcements and shareholder value under industries 4.0 and 5.0: evidence from China

Abstract

PurposeThis study aims to empirically examine the effect of supply chain innovation (SCI) announcements on shareholder value within the context of Industry 4.0 and Industry 5.0.Design/methodology/approachThis study uses an event study method to examine the effect of SCI announcements on shareholder value of the 156 listed companies in China.FindingsFirst, SCI announcements have a positive effect on shareholder value. Second, SCI with an integrated form more positively affects shareholder value than SCI with an independent form. SCI at the strategy level more positively affects shareholder value than SCI at the operation level. Technology-type SCI more positively affects shareholder value than process-type SCI. Third, this study finds that investors pay more attention to the SCI of companies in the service industry than that of in the manufacturing industry. Finally, the post-hoc analysis finds that digital SCI more positively affects shareholder value than intelligent SCI.Originality/valueFirst, most scholars use questionnaire data rather than second-hand data to conduct empirical research to explore the impact of SCI on performance. Second, although scholars focus on performance comprehensively, including operational, financial, relational and environmental performance, no scholars use an event study to explore the impact of SCI on the stock market. Third, no scholars have explored the differential impact of SCI in different industries. Forth, few scholars have classified SCI according to the characteristics to explore the differential impact of SCI. Finally, the differences between SCI of Industry 4.0 and SCI of Industry 5.0 have been described, but no scholars have used empirical research to explore the differences.

Investor Reactions to Twin Transformers Announcements

“…If we look at the "digital events", digital initiatives do not represent statistically significant events in any of the analysed companies. Such results are opposite to the findings ofYuan et al (2022) andLiu et al (2022).…”

Exploring the Influence of Exploitative and Explorative Digital Transformation on Organization Flexibility and Competitiveness

“…Disruptive business opportunities (DBO) refer to innovation as well as the use of modern technologies which could help to make sophisticated products and services more affordable to the broader market [47]. Disruptive business opportunities can be availed by application of new technologies, innovative business design, along with a coherent value network which can be ensured by adapting digital technologies for digital transformation in an organization [43] Such innovative ways of doing business can be achieved through digital transformation of the organizations by using new technologies such as industry 4.0 technologies [52].…”

“…This can be achieved by the employees through experience and by leveraging digital courses and readiness materials available in the organizations. Development plan for the employees is to be implemented to enhance knowledge of the employees helpful for the employees to easily use the sophisticated technologies needed to facilitate digital transformation in their organization [52]. For complete digitalization of an organization, skill and knowledge of the employees working in different functions of the organizations need to be enhanced because digitalization will impact business activities of all the departments of the organizations.…”

“…Exploitative and explorative impacts of an organization focus on the present and existing abilities as well as on the future prospect. Organizations need to execute digital transformation with the help of industry 4.0 technology for successfully impacting the flexibility of the organization [52].…”

“…improve its operation and business style on a predictable timeframe. Such improvement of operations can be successfully achieved if the organizations use modern industry 4.0 technologies for their operational activities[51][52]. Disruptive business opportunities help an organization to flourish in this digital era.…”