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https://doi.org/10.62836/jcmea.v3i1.030105
Tang, Y., & Li, C. (2023). Exploring the Factors of Supply Chain Concentration in Chinese A-Share Listed Enterprises. Journal of Computational Methods in Engineering Applications, 3(1), 1–17. https://doi.org/10.62836/jcmea.v3i1.030105
Volume 3, Issue 1, 2023

Exploring the Factors of Supply Chain Concentration in Chinese A-Share Listed Enterprises

Using data of 1133 Chinese A-share listed enterprises on the Shanghai and Shenzhen Stock Exchanges for the period 2011–2022, this study examines the effects of corporate innovation, firm over-indebtedness, financing constraints, and firm profitability on supply chain concentration. The baseline results show that corporate innovation and profitability reduce supply chain concentration, while over-indebtedness and financing constraints increase it. These findings suggest that higher R&D investments and profitability enable firms to diversify their supply chains, whereas financial pressures lead to consolidation. The results remain robust after addressing endogeneity concerns using the system GMM approach. Heterogeneity analysis reveals stronger responses in large firms, state-owned enterprises, and high-tech industries. These results suggest policy implications of promoting R&D investments, reducing the debt levels, alleviating the financing constraints, and adopting profit-generating activities to diversify supply chain.

supply chain concentration; corporate innovation; firm over-indebtedness; financing constraints; firm profitability

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