Digital technology diffusion through supply chain orchestration

Digital technology diffusion is reshaping innovation across supply chain dynamics and ecosystem partners. Prior work often looks at one firm or uniform settings, missing how technology diffusion need to be orchestrated by ecosystem leader across diverse suppliers and other actors. To address this gap, this study employs an exploratory case study of the intelligent vehicle ecosystem, focusing on an original equipment manufacturer (OEM) and six supply chain partners. Although positioned in the supply chain, these actors influence the wider ecosystem thereby affecting technology diffusion beyond dyadic ties. Drawing on 35 interviews, observations, and secondary data, the research advances the technology diffusion and innovation ecosystem literatures in three ways. First, it highlights the evolving role of focal actor as ecosystem leader, demonstrating their progression from transformational to collaborative and ultimately empowering roles across different phases of digital technology diffusion. Second, it identifies three orchestration mechanisms, namely knowledge orchestration, incentive aligned orchestration, and market driven orchestration, and specifies when each should be deployed in response to partner-specific requirements. Third, it offers a novel perspective on how ecosystem leaders shift value propositions to include both core and peripheral partners. From a practical standpoint, the study offers OEMs actionable guidance to diagnose their diffusion context and select appropriate orchestration mechanism. It also provides policymakers with insights for designing targeted instruments that strengthen digital diffusion and support sustainable industrial growth. • Orchestration mechanisms depend on partner-specific requirements. • Orchestrators' role evolve across different phases of digital technology diffusion. • Technology value propositions shift to include core and peripheral partners.