Does supply chain concentration improve sustainability performance: the role of operational slack and information transparency

Fu Jia, Ying Xu, Lujie Chen*, Kiran Fernandes

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

5 Citations (Scopus)

Abstract

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.

Original languageEnglish
JournalInternational Journal of Operations and Production Management
DOIs
Publication statusAccepted/In press - 2023

Keywords

  • Information transparency
  • Operational slack
  • Resource dependence theory
  • Supply chain concentration
  • Sustainability performance

Fingerprint

Dive into the research topics of 'Does supply chain concentration improve sustainability performance: the role of operational slack and information transparency'. Together they form a unique fingerprint.

Cite this