Abstract: Effectively resolving overcapacity is of great significance for China to promote supply side structural reform and achieve high-quality economic development. Based on the pilot work of supply chain innovation and application and using the data from Chinese listed companies from 2013 to 2021 as research samples, this study empirically examines the impact of supply chain digitization on enterprise capacity utilization rate and its underlying mechanism with the difference in differences method. The research results show that digitalization of the supply chain significantly improves the utilization rate of enterprise capacity and effectively resolves the problem of overcapacity. After a series of robustness tests such as parallel trend testing and placebo testing, the conclusion still holds true. The mechanism verification results indicate that supply chain digitization mainly has a positive impact on enterprise capacity utilization rate through two ways: alleviating information asymmetry and enhancing product competitiveness. The heterogeneity analysis shows that for non high-tech enterprises, enterprises with low financing constraints, enterprises with high supply chain relationships, and enterprises with good regional supply chain operating environments, the role of supply chain digitization in improving enterprise capacity utilization is more prominent. Therefore, it is necessary to strengthen the embedding and application of digital technology in traditional supply chains, increase investment in finance, education, and technology, create a new type of digital supply chain collaboration platform, fully leverage the driving role of pilot enterprises, and guide enterprises to use multiple paths to resolve idle production capacity.

Key words: supply chain digitization, enterprise capacity utilization rate, information asymmetry, product competitiveness