Does Supply Chain Network Centrality Enhance or Impede Firm Innovation: Evidence from China

Jiao Hong, Hu Xiong and Zhiyuan Zhou

Emerging Markets Finance and Trade, 2024, vol. 60, issue 9, 2068-2080

Abstract: This study mainly investigates the effects of supply chain network centrality on firm innovation output. We uncover that supply chain network centrality has a negative impact on firm innovation. The negative impact of network centrality on corporate innovation quantity is stronger when economic policy uncertainty is higher and the firm belongs to high-tech industries. Similarly, the detrimental effect of network centrality on corporate innovation quality is magnified when the level of marketization is lower and the firm belongs to high-tech industries. Firms with high supply chain network centrality are associated with more severe short-sightedness, higher transaction costs, and greater operational risks, and thus inhibits firm innovation output.

Date: 2024
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DOI: 10.1080/1540496X.2023.2298269

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