Abstract
Digital transformation needs two essential phases of endeavors: digitalizing and data-driving business activities. The former involves much ICT capital investment that was widely studied, while the latter requires ongoing data capital investment (DCI) with many research gaps. Thus, firms face a trade-off dilemma in an input–output decision for DCI. To overcome the dilemma and fill such a gap, we first employ grounded theory to explore the underlying mechanisms of DCI to create value. Second, we construct a DCI-embedded game model and analyze DCI's economic effects under three supply chain power structures. Last, we conduct a case study to verify the main findings. The results suggest that: (i) supply chain firms can boost their profits through DCI only when the DCI implementation cost and level are within specific ranges; (ii) DCI has a positive vertical externality in the supply chain; and (iii) a firm will be more likely to implement DCI when it has a stronger market position in the supply chain.
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This work was supported by the National Planning Office of Philosophy and Social Science of China (Grant No. 21BJY206).
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Baogui Xin: Conceptualization, Methodology, Supervision, Validation, Formal analysis, Software, Writing – review & editing. Yue Liu: Conceptualization, Methodology, Formal analysis, Software, Validation, Writing – original draft. Lei Xie: Conceptualization, Methodology, Validation, Writing – review & editing.
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Xin, B., Liu, Y. & Xie, L. Strategic data capital investment in a supply chain. Oper Manag Res 16, 1925–1948 (2023). https://doi.org/10.1007/s12063-023-00402-y
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DOI: https://doi.org/10.1007/s12063-023-00402-y