Digital innovation diffusion in the manufacturer–distributor relationship

Purpose In the era of digital transformation, digital innovation has emerged as a crucial driver of competitiveness and growth. However, limited knowledge exists on how digital innovation diffuses across supply chains, particularly in the manufacturer–distributor relationship. Drawing upon diffusion of innovation theory and social network theory, this study aims to examine how manufacturers’ digital innovation impacts distributors’ digital innovation, focusing on the moderating roles of cooperation length and network status of manufacturers and distributors. Design/methodology/approach The study uses a sample of 233 manufacturer–distributor pairs from the Chinese paper-making industry. Geographically, the survey comprises sample firms nationwide, covering most regions and provinces in China. Findings The authors find that manufacturers’ digital innovation positively affects distributors’ digital innovation. This relationship is strengthened by cooperation length and manufacturers’ network status but dampened by distributors’ network status. The findings provide insights into how digital innovation diffuses across supply chain partners and highlight the importance of social relationships and network positions in this digital innovation diffusion process. Originality/value This study makes a significant contribution to the field of supply chain management by offering deep insights into the diffusion of digital innovation across supply chain partners. It highlights the significance of social relationships and network positions in the process of digital innovation diffusion, offering a novel perspective on the interplay between manufacturers and distributors in the context of digital transformation.