Digital intelligence technology adoption and supply chain security of manufacturing firms: empirical evidence from China

Why this matters for everyday goods

From cars and phones to medicine and home appliances, most of what we use every day depends on long, complex supply chains. In recent years, trade disputes, pandemics, and regional conflicts have shown how fragile these chains can be. This study asks a simple question with big consequences: can smarter, data‑driven technologies help factories keep supplies flowing more safely and reliably, even when the world is unstable?

Shocks to the world of making and moving things

The authors begin by describing how global production has been shaken by deglobalisation, trade protection, and geopolitical tensions. Countries are pulling key industries back home or toward political allies, while crises such as COVID‑19 and conflicts affecting major shipping routes have exposed how easily supplies can be disrupted. In China, the world’s largest manufacturing base, safeguarding the steady operation of industrial supply chains has become a core national priority. Supply chain security, in this context, means being able to keep essential materials and products moving, maintain critical functions, and avoid cascading breakdowns when shocks occur.

Smart tools in the factory toolbox

At the heart of the article is “digital intelligence” technology—a broad blend of big data, artificial intelligence, cloud computing, the Internet of Things, and blockchain. These tools turn traditional factories into more “aware” and responsive systems. Sensors and connected devices can track materials in real time, algorithms can spot patterns and warn of trouble early, and digital twins and simulations can stress‑test supply chains before crises hit. Rather than reacting after a disruption has already caused damage, companies can shift toward early warning, prevention, and faster recovery.

How the study was carried out

To move beyond theory, the researchers analysed detailed data from 1,287 Chinese manufacturing firms listed on the stock market between 2012 and 2024, forming more than 16,000 firm‑year observations. They built a composite measure of supply chain security that captures how smoothly supply and demand match, how stable relationships with partners are, and how much firms invest in improving the quality and reliability of their products. They also created a measure of how deeply each firm had adopted digital intelligence, based on how often related technologies are mentioned in annual reports. Using modern statistical models and extensive checks, they tested whether firms with stronger digital intelligence adoption indeed enjoy more secure supply chains.

What smarter technology actually changes

The results show a clear pattern: firms that adopt digital intelligence technologies more intensively tend to have more secure supply chains. This effect holds up even when the authors change how they measure both technology use and security, or adjust the sample. The study uncovers two main routes for this improvement. First, digital tools strengthen risk management. By mining large amounts of data, firms can foresee supply disruptions, logistics bottlenecks, or policy shifts earlier and adjust inventories, sourcing, and production plans in advance. Second, these tools improve coordination. Shared data platforms and real‑time information help manufacturers, suppliers, and customers align their production plans, match capacity to demand, share inventories, and respond together when an unexpected problem arises.

Why place and network structure matter

The benefits of going digital are not evenly spread. Firms in China’s more developed eastern regions gain more from digital intelligence than those in central and western areas, largely because they sit on stronger digital infrastructure—better networks, cloud services, data platforms, and skilled workers. Companies with many, relatively small suppliers and customers also see larger gains than those heavily dependent on just a few partners, because digital tools help them cut through information gaps and complex coordination tasks. Strikingly, the study finds that when a central “chain‑leading” firm improves its own supply chain security, this advantage spills over to both its upstream suppliers and downstream customers, lifting the resilience of the entire network.

What it all means for products and policies

For lay readers, the core message is straightforward: when factories invest in smarter, data‑driven technologies and operate in regions with solid digital infrastructure, the goods they make are less likely to be delayed or disrupted by global turmoil. Digital intelligence does not replace human judgement, but it gives firms better eyes and ears across their networks, making it easier to spot danger early and to move in sync with partners. The authors conclude that to keep everyday products flowing reliably, companies need to weave these technologies into both their internal risk systems and their collaboration with suppliers and customers, while governments should help by improving digital infrastructure and supporting key firms that anchor entire supply chains.

Citation: Yu, Z., Liu, H. & Xing, C. Digital intelligence technology adoption and supply chain security of manufacturing firms: empirical evidence from China. Sci Rep 16, 10356 (2026). https://doi.org/10.1038/s41598-026-41349-x

Keywords: digital supply chains, manufacturing resilience, artificial intelligence, risk management, China industry