Supply chain concentration and enterprise financialization: Evidence from listed companies in China’s manufacturing industry

Abstract

Enterprise financialization will block the equipment update and technological innovation of enterprises by crowding out the main business funds. The risks and benefits of supply chain concentration will affect the enterprise financialization. This paper selects the panel data of A-share listed companies in China from 2009 to 2021, and uses fixed effect regression to analyze the impact of supply chain concentration on enterprise financialization. The conclusions show: both suppliers and customers concentration significantly promote the financialization of enterprises, and this conclusion is still valid after a series of tests; This kind of financialization effect is heterogeneous in four aspects: the nature of property rights, the scale of enterprises, the intensity of industrial competition and the level of economic development in the region where the enterprises are located; the mechanism analysis show that customer concentration can affect enterprise financialization through upstream commercial credit, but supplier concentration cannot affect enterprise financialization through downstream commercial credit.

Digital Transformation: Moderating Supply Chain Concentration and Competitive Advantage in the Service-Oriented Manufacturing Industry

“…Firstly, this research reveals that in the traditional supply chain profit-sharing model, the rising costs of procurement and consumption depress corporate profits. Over-concentration of the supply chain can lead to economic disadvantages in today's service-oriented markets [128]. This can lead to manufacturers abusing their power in the supply chain, exacerbating the potential economic consequences.…”

“…The possible reason for this is that non-state-owned enterprises typically operate in competitive markets and compete with multiple suppliers and customers. When key links in the supply chain are concentrated in the hands of a small number of suppliers or customers, it is easier for these key players to exert pressure on an NSOE to obtain more favorable prices, contract terms, or other negotiating conditions [127,128].…”

Constructing a Digital Capability Evaluation Framework for Manufacturing Enterprises in the Context of Digital Economy: Based on LDA, Entropy Weight and TOPSIS Model

“…For enterprise-level data, listed manufacturing companies in Dongguan City were selected as the study subjects. This selection is based on the availability of data and the representativeness of Dongguan's manufacturing industry as a microcosm of China's broader manufacturing sector [4].…”