Supply chain innovation announcements and shareholder value under industries 4.0 and 5.0: evidence from China
| DOI | https://doi.org/10.1108/IMDS-12-2021-0802 |
| Published date | 21 July 2022 |
| Date | 21 July 2022 |
| Pages | 1909-1937 |
| Subject Matter | Information & knowledge management,Information systems,Data management systems,Knowledge management,Knowledge sharing,Management science & operations,Supply chain management,Supply chain information systems,Logistics,Quality management/systems |
| Author | Chaolun Yuan,Weihua Liu,Gang Zhou,Xiaoran Shi,Shangsong Long,Zhixuan Chen,Xiaoyu Yan |
Supply chain innovation
announcements and shareholder
value under industries 4.0 and 5.0:
evidence from China
Chaolun Yuan, Weihua Liu and Gang Zhou
Tianjin University, Tianjin, China
Xiaoran Shi
Tianjin University, Tianjin, China and
Tianjin University of Technology, Tianjin, China, and
Shangsong Long, Zhixuan Chen and Xiaoyu Yan
Tianjin University, Tianjin, China
Abstract
Purpose –This study aims to empirically examinethe effect of supply chain innovation (SCI) announcements
on shareholder value within the context of Industry 4.0 and Industry 5.0.
Design/methodology/approach –This study uses an event study method to examine the effect of SCI
announcements on shareholder value of the 156 listed companies in China.
Findings –First, 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/value –First, 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
SCIof Industry5.0 have been described,but no scholars have used empirical research to explore the differences.
Keywords Supply chain innovation announcements, Shareholder value, Chinese-listed companies, Industry
4.0, Industry 5.0
Paper type Research paper
1. Introduction
In recent years, companies have begun to pay attention to supply chain innovation (SCI).
Industry 4.0 realizes the SCI through the combination of virtual and real technology and the
Internet of Things (IoT) (Dalenogare et al., 2018). With the development of artificial
intelligence in Industry 5.0, SCI advance from the digital stage to the intelligent stage
(Seobelev and Yu, 2017). SCI refers to a complex process that manages environmental
SCI
announcements
and shareholder
value
1909
This research is supported by Major Program of the National Social Science Foundation of China (Grant
No. 18ZDA060). The reviewers’comments are also highly appreciated.
Conflict of interests: The authors declare that there is no conflict of interests regarding the publication
of this article.
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/0263-5577.htm
Received 11 January 2022
Revised 10 May 2022
2 June 2022
Accepted 9 June 2022
Industrial Management & Data
Systems
Vol. 122 No. 8, 2022
pp. 1909-1937
© Emerald Publishing Limited
0263-5577
DOI 10.1108/IMDS-12-2021-0802
uncertainties and optimizes operational processes using new technologies (e.g. big data,
blockchain, IoT, artificial intelligence, etc.) or processes with the goal of providing a quick
response to the demand (Lee et al., 2011).
The effect of SCI on the company is often twofold. On the one hand, SCI can accelerate
communication speed, shorten delivery time, reduce delivery cost and obtain higher
efficiency, which are crucial in improving performance, reducing waste and building an
effective supply chain information network (Yoon et al., 2016;Kwak et al., 2018). At the same
time, SCI can enhance the robustness and flexibility, which will improve the ability of risk
management and promote sustainable competitive advantages (Afraz et al., 2021). On the
other hand, SCI may also produce some uncertainties. In particular, it may increase the
complexity of processes, resulting in higher management costs (Pettit et al., 2010).
Furthermore, the complexity of SCI makes it difficult to identify various risks and
challenge operations. For example, SCI may cause the demand to be unpredictable for a
period of time, resulting in fluctuations in the operation (Finger et al., 2014). Therefore,
evidence to prove the effect of SCI remains to be further explored.
To attract investors, companies often release SCI announcements to show the form, type,
level and other relevant information of SCI. The involved information in SCI may greatly
impact corporate performance and shareholder value (Liu et al., 2020b). Analyzing the effect
of SCI announcements on shareholder value can not only provide effective decision-making
guidance regarding SCI information disclosure but also deepen corporate understanding of
how SCI affects performance, providing a basis upon which corporate managers can analyze
SCI performance. Therefore, this study focuses on the stock market and explores the effect of
SCI announcements.
This study focuses on the Chinese stock market for the following three reasons. First, the
Chinese government has attached great importance to SCI within the context of Industry 4.0
and Industry 5.0. Through the promulgation of relevant SCI policies, the Chinese government
encourages companies to carry out SCI. As a result, companies have gradually recognized the
importance of SCI, paying attention to the digital transformation and adoption of innovative
technologies in the supply chain. An increasing number of companies have actively explored
the innovation and upgrading of supply chain systems to achieve cost reduction and
efficiency improvement. More importantly, SCI of Chinese companies have been recognized
worldwide in recent years. For example, in the list of the top 25 global supply chains in 2020
released by Gartner, Chinese companies Lenovo and Alibaba are on the list one after another
because of their advanced intelligent supply chain systems. In addition, 23 Chinese
companies are shortlisted for this selection, such as Huawei Technology, ZTE, Haier
and JD.COM.
This study takes SCI as the research object within the context of Industry 4.0and Industry
5.0 and intends to study the following four research questions:
RQ1. How do the SCI announcements of Chinese-listed companies affect shareholder
value since Industry 4.0 was first proposed in 2013?
RQ2. What different effects do the different forms, types and levels of SCI
announcements have on shareholder value?
RQ3. What different effects do SCI announcements released by companies in different
industries have on shareholder value?
RQ4. What different effects do SCI under Industry 4.0 and SCI under Industry 5.0 have
on shareholder value?
Based on the knowledge view, technology view and organization view of core competence
theory, this study uses an event study to explain the relationship between SCI
IMDS
122,8
1910
To continue reading
Request your trial