Cognitive trap: how digital transformation misalignment erodes supplier innovation efficiency

Purpose Digital transformation is commonly posited to enhance corporate cognitive capabilities and achieve greater innovation efficiency. However, few studies have examined the impact of misalignment arising from supply chain partners pursuing digital transformation independently on innovation efficiency, particularly for the relatively disadvantaged suppliers within the chain. Therefore, the purpose of this paper is to explore how this digital transformation misalignment affects suppliers’ innovation efficiency, as well as the mechanisms underlying this impact. Design/methodology/approach Anchored in the attention-based view, an empirical study was carried out using a sample of 1,288 supplier-customer-year observations from China’s A-share listed companies between 2012 and 2023. Findings Digital transformation misalignment traps executive attention in existing-oriented focus while reducing the long-term strategic attention necessary for innovation, thereby resulting in a loss of supplier innovation efficiency. Market position weakens this negative effect, whereas geographical distance strengthens it. Furthermore, the adverse impact is more pronounced when misalignment occurs in the dimensions of strategic orientation, technology drive and environmental support, and when the supplier’s relative level of digitalization is lower. Both radical and incremental innovation efficiency are impacted. Originality/value This paper contributes to the under-explored research on executive cognition and digital transformation collaboration, providing important implications for advancing digital transformation, corporate innovation efficiency and supply chain management.