Yongtao Peng, Zhijie Xiao, Yaya Li
Amid accelerating global economic integration and escalating imperatives for sustainable development, digital transformation (DT) and service innovation (SI) have evolved into pivotal drivers of sustainable supply chain modernization. Although DT has been widely recognized for enhancing supply chain continuity and performance, the mediating role of SI remains insufficiently explored. This study examines how SI bridges the link between DT and sustainable supply chain performance (SSCP) by drawing on empirical data from Chinese A-share listed manufacturing firms from 2010 to 2023. The findings highlight SI as a significant amplifier of DT’s impact on SSCP, with multi-dimensional mediation effects across service products, processes, and model innovation. By identifying SI as a novel mediating mechanism, this study adds to the expanding body of research on DT and SSCP, offering both theoretical and actionable insights. It further provides a practical framework for organizations to bolster supply chain resilience and sustainability in real-world settings.