Customers’ Negative Managerial Expectations and Suppliers’ Dual Innovation: Evidence from China

Jie Liu and Chuan Zhang

Emerging Markets Finance and Trade, 2025, vol. 61, issue 12, 3711-3723

Abstract: This study analyses the correlation between customers’ negative managerial expectations and suppliers’ binary innovations under supply chain risk scenarios. The findings suggest that suppliers are more likely to promote radical rather than incremental innovation when customers express negative managerial expectations. Customers’ negative managerial expectations are more likely to encourage breakthrough innovations if the supplier has weaker bargaining power, lower financial constraints, higher tolerance for innovation failure, and is located in a more competitive market region. Mechanism tests indicate that customers’ negative managerial expectations increase suppliers’ business risks and stimulate suppliers to engage in breakthrough innovations. Economic consequences tests suggest that when customers hold negative expectations about the future, suppliers’ breakthrough innovation increases their industry position and product novelty. This study provides empirical evidence that helps firm management to improve supply chain innovation to address customer risk.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/1540496X.2025.2488214 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mes:emfitr:v:61:y:2025:i:12:p:3711-3723

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MREE20

DOI: 10.1080/1540496X.2025.2488214

Access Statistics for this article

More articles in Emerging Markets Finance and Trade from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().