Digitization Diffusion Along the Supply Chain

How do digital technologies (e.g. AI and big data) versus cybersecurity initiatives diffuse along the supply chain? Based on digitization and cybersecurity words in 10-K filings from 1998 to 2016, we find that suppliers learn from customer firms in adopting digital technologies, and the learning is more effective when the supply chain relationship lasts longer and when the business overlap is greater. In contrast, customer firms pre-select suppliers with comparable cybersecurity commitments. This paper highlights the nature of technology in its diffusion process along the supply chain.