@article{yu-xia_how_2026, title = {How does supply chain concentration influence the digital transformation-collaborative innovation nexus in the {Chinese} textile industry?}, issn = {1222-5347}, url = {https://revistaindustriatextila.ro/images/2026/2/013%20AN%20YU-XIA_INDUSTRIA%20TEXTILA%20no.2_2026.pdf}, doi = {10.35530/IT.077.02.202549}, abstract = {Supply chain concentration, defined as the reliance on a few customers and suppliers, presents both opportunities and risks for firms, particularly when seeking to drive innovation through digital transformation. In the Chinese textile industry, this supply chain concentration could either facilitate or hinder the effectiveness of digital strategies designed to promote collaborative innovation. Realising the economic significance of the Chinese textile industry, this study explains how supply chain concentration influences the relationship between digital transformation and collaborative innovation in the Chinese textile sector. Using data of 942 A-share listed textile firms in China, this study reveals a robust positive relationship between digital transformation and collaborative innovation, demonstrating that digital strategies have the potential to foster innovation in the sector. To address potential endogeneity concerns, we further validate this finding using the two-stage least squares (2SLS) regression model. However, the study uncovers that textile companies operating within highly concentrated supply chains face constraints that prevent them from fully leveraging digital transformation for collaborative innovation. Furthermore, heterogeneity analysis shows that industry-specific factors, such as pollution levels, and firm characteristics, including firm size (FS), significantly moderate this relationship. These findings suggest that policymakers should focus on improving digital infrastructure, promoting financial inclusion, and diversifying supply chains to enable textile firms to more effectively utilise digital transformation for driving collaborative innovation.}, urldate = {2026-05-17}, journal = {Industria Textila}, author = {Yu-Xia, An}, month = may, year = {2026}, pages = {317}, }