Social credit and supply chain resilience: Insights from China's social credit system construction

Donghua Zhou, Yuanyuan Yang and Yujie Zhao

International Review of Financial Analysis, 2025, vol. 107, issue C

Abstract: Using data from non-financial listed companies in China's A-share market between 2007 and 2022, this study employs a quasi-natural experiment of the China's social credit system (CSCS) pilot cities to examine its impact on supply chain resilience. We find that companies in the CSCS pilot cities have significantly improved supply chain resilience. The main mechanisms driving this effect on supply chain resilience are information, moral, resource, and capability effects. The positive impact of CSCS on supply chain resilience is stronger when companies face higher crisis shocks, weaker cooperation, and less favorable organizational characteristics. Moreover, CSCS's positive effect on supply chain resilience significantly enhances the firm's total factor productivity.

Keywords: China's social credit system (CSCS); Supply chain resilience; Information effect; Moral effect; Resource effect; Capability effect (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:107:y:2025:i:c:s1057521925006556

DOI: 10.1016/j.irfa.2025.104568

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