Can management tone predict the firm's decision on supply chain configuration?

Da Zhang and Yuxia Wang

Finance Research Letters, 2024, vol. 62, issue PB

Abstract: This paper investigates the relationship between management tone and a firm's decision on supply chain configuration. We find that during the years 2010 through 2020, a more positive management tone is associated with a lower supply chain concentration. We establish causality through the IV-2SLS approach. In addition, we find that this relationship is more pronounced for firms with greater operational risk, higher industry competition, and a weaker market advantage position. Overall, our results highlight that proactive managers are more likely to anticipate future challenges and proactively address supply chain concentration risks in their current decision-making processes.

Keywords: Management tone; Supply chain configuration; Concentration (search for similar items in EconPapers)
JEL-codes: G30 G32 M40 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:62:y:2024:i:pb:s1544612324002538

DOI: 10.1016/j.frl.2024.105223

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