This study examines whether and under what conditions digital transformation (DT) enhances safety effectiveness (SE) in the manufacturing industry, where operational risks and safety requirements are high. Drawing on signaling theory, the study investigates DT as a safety-related signal and examines the moderating roles of supply chain transparency (SCT) and safety disclosure.
Using panel data from 3,932 Chinese manufacturing firms listed on the A-share markets (2010–2022), the study applies descriptive statistics, correlation analysis and multiple regression models to test hypotheses. The analysis was conducted using STATA to ensure accuracy and reliability.
The results show that DT is positively associated with safety effectiveness, indicating that DT functions as a credible signal of safety capability. This relationship is significantly strengthened by higher levels of SCT, which enhance signal observability through improved tracking, visibility and information sharing across supply-chain relationships. Safety disclosure further amplifies the DT–SE relationship by increasing signal clarity and stakeholder trust.
This study contributes to the operations and supply chain management literature by theorizing and empirically validating digital transformation as a safety signal. By incorporating SCT and safety disclosure as signaling conditions, the study clarifies when DT is most effective in reducing severe safety incidents in manufacturing contexts.
