TY - JOUR
T1 - Does supply chain concentration improve sustainability performance
T2 - the role of operational slack and information transparency
AU - Jia, Fu
AU - Xu, Ying
AU - Chen, Lujie
AU - Fernandes, Kiran
N1 - Publisher Copyright:
© 2023, Emerald Publishing Limited.
PY - 2024/9/4
Y1 - 2024/9/4
N2 - Purpose: Despite the increasing interest in the role of supply chain concentration (SCC) in improving performance, its influence on firms' sustainability performance remains unexplored, as do the underlying mechanisms of this relationship. Drawing on resource dependence theory, the authors investigate the relationship between SCC and manufacturing firms' sustainability performance and the moderating roles of operational slack and information transparency. Design/methodology/approach: The authors use secondary data from 3,581 manufacturing firms listed on the Shanghai and Shenzhen A-share stock markets from 2006 to 2020 to conduct an empirical analysis using panel data regression models. Findings: Manufacturing firms' SCC is negatively related to sustainability performance until it reaches a certain point, where SCC positively affects sustainability performance, presenting a U-shaped relationship. In addition, operational slack represented by a quick ratio moderates the relationship between SCC and sustainability performance by flattening the curve. Operational slack represented by receivable turnover ratio moderates the relationship between SCC and sustainability performance by steepening the curve and shifting the turning point left. Information transparency strengthens the effect of SCC on the sustainability performance by steepening the curve. Originality/value: This investigation provides a comprehensive view of the SCC– sustainability performance relationship.
AB - Purpose: Despite the increasing interest in the role of supply chain concentration (SCC) in improving performance, its influence on firms' sustainability performance remains unexplored, as do the underlying mechanisms of this relationship. Drawing on resource dependence theory, the authors investigate the relationship between SCC and manufacturing firms' sustainability performance and the moderating roles of operational slack and information transparency. Design/methodology/approach: The authors use secondary data from 3,581 manufacturing firms listed on the Shanghai and Shenzhen A-share stock markets from 2006 to 2020 to conduct an empirical analysis using panel data regression models. Findings: Manufacturing firms' SCC is negatively related to sustainability performance until it reaches a certain point, where SCC positively affects sustainability performance, presenting a U-shaped relationship. In addition, operational slack represented by a quick ratio moderates the relationship between SCC and sustainability performance by flattening the curve. Operational slack represented by receivable turnover ratio moderates the relationship between SCC and sustainability performance by steepening the curve and shifting the turning point left. Information transparency strengthens the effect of SCC on the sustainability performance by steepening the curve. Originality/value: This investigation provides a comprehensive view of the SCC– sustainability performance relationship.
KW - Information transparency
KW - Operational slack
KW - Resource dependence theory
KW - Supply chain concentration
KW - Sustainability performance
UR - http://www.scopus.com/inward/record.url?scp=85178393771&partnerID=8YFLogxK
U2 - 10.1108/IJOPM-12-2022-0807
DO - 10.1108/IJOPM-12-2022-0807
M3 - Article
AN - SCOPUS:85178393771
SN - 0144-3577
VL - 44
SP - 1831
EP - 1862
JO - International Journal of Operations and Production Management
JF - International Journal of Operations and Production Management
IS - 10
ER -