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

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  • Jiao Hong
  • Hu Xiong
  • Zhiyuan Zhou

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.

Suggested Citation

  • Jiao Hong & Hu Xiong & Zhiyuan Zhou, 2024. "Does Supply Chain Network Centrality Enhance or Impede Firm Innovation: Evidence from China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 60(9), pages 2068-2080, July.
    • Handle: RePEc:mes:emfitr:v:60:y:2024:i:9:p:2068-2080
    DOI: 10.1080/1540496X.2023.2298269
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