Customer digital transformation and supply chain information efficiency: Evidence from the bullwhip effect

Abstract

This study examines whether customer-side digital transformation is associated with higher supply chain information efficiency in supplier–customer relationships among Chinese listed companies. The bullwhip effect is used as a relationship-level reverse proxy for demand information distortion. A quantitative archival-data design is adopted using supplier–customer-year observations from Chinese listed companies. Customer digital transformation is measured through an annual-report-based digital transformation indicator. Ordinary least squares regressions with industry and year fixed effects are estimated, with standard errors clustered at the supplier-firm level. Robustness checks use a logged bullwhip-effect measure, an alternative digital transformation indicator, supplier fixed effects, and an alternative dependent variable. Heterogeneity analysis is conducted according to external uncertainty. Customer digital transformation is negatively and significantly associated with the bullwhip effect, indicating lower demand information distortion in relationships involving digitally transformed customer firms. The association remains supported across the logged dependent-variable specification, the alternative digital transformation measure, and supplier fixed effects, although the evidence is weaker when upstream supply-demand deviation is used as the alternative outcome. The negative association is more pronounced under high external uncertainty. The findings suggest that customer-side digitalisation may generate supply-chain-level information spillovers by improving visibility, traceability, and credibility of demand-related information. The study contributes by positioning the bullwhip effect as an observable relationship-level indicator of supply chain information efficiency and by clarifying the boundary role of external uncertainty.