 Supply chain risk: Changes in supplier composition and vertical integrationNuri Ersahin, Mariassunta Giannetti and Ruidi Huang Journal of International Economics, 2024, vol. 147, issue C Abstract: Using textual analysis of earnings conference calls, we quantify firms' supply chain risk and explore how firms react when supply chain risk increases. We show that firms with supply chains that span across continents, multinationals, and firms with fewer suppliers of an input face higher supply chain risk. In addition, firms exhibit high supply chain risk when their suppliers also do so. Firms manage supply chain risk by establishing relationships with closer and domestic suppliers and with suppliers that are industry leaders and by vertically integrating, but they continue to work with suppliers in other continents. Keywords: Supply chains; Nearshoring; Fragmentation; Textual analysis; Vertical integration; M&As (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:147:y:2024:i:c:s002219962300140x DOI: 10.1016/j.jinteco.2023.103854 Access Statistics for this article Journal of International Economics is currently edited by Gourinchas, Pierre-Olivier and RodrÃguez-Clare, Andrés More articles in Journal of International Economics from Elsevier |
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