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<p>In an era of recurrent and severe disruptions, understanding how firms sustain supply chain viability has become a central question in operations and supply chain management. While prior research has extensively examined the ripple effect and supply chain resilience, less is known about why firms exposed to similar upstream disruptions exhibit heterogeneous viability outcomes. Drawing on the supply chain viability (SCV) framework, this study investigates whether internal digital capabilities and external network power buffer the adverse effects of upstream ripple propagation on firm-level supply chain viability. Using panel data on 222 Chinese publicly listed firms and their supply chain networks from 2011 to 2023, we examine how digitalization and upstream bargaining power shape firms’ ability to withstand cascading disruptions. The results show that the ripple effect significantly undermines supply chain viability, but this negative relationship is attenuated for firms with higher levels of digitalization and stronger upstream network positions. These findings advance SCV research by providing empirical evidence on the buffering roles of digital capabilities and network structure in sustaining viability under systemic shocks. The study also offers managerial implications for building viable supply chains in environments characterized by deep uncertainty.</p>

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Harnessing the ripple effect: the role of digitalization and network position in building viable supply chains

  • 期刊论文

  • 发表日期：

    2026年8月1日

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  • Jianyu Zhao,
  • Zhiwei He,
  • Xi Xi,
  • Wei Liu

摘要

In an era of recurrent and severe disruptions, understanding how firms sustain supply chain viability has become a central question in operations and supply chain management. While prior research has extensively examined the ripple effect and supply chain resilience, less is known about why firms exposed to similar upstream disruptions exhibit heterogeneous viability outcomes. Drawing on the supply chain viability (SCV) framework, this study investigates whether internal digital capabilities and external network power buffer the adverse effects of upstream ripple propagation on firm-level supply chain viability. Using panel data on 222 Chinese publicly listed firms and their supply chain networks from 2011 to 2023, we examine how digitalization and upstream bargaining power shape firms’ ability to withstand cascading disruptions. The results show that the ripple effect significantly undermines supply chain viability, but this negative relationship is attenuated for firms with higher levels of digitalization and stronger upstream network positions. These findings advance SCV research by providing empirical evidence on the buffering roles of digital capabilities and network structure in sustaining viability under systemic shocks. The study also offers managerial implications for building viable supply chains in environments characterized by deep uncertainty.