Work

Managers' perception of supply chain risk and total factor productivity of enterprises: Opportunity-seeking or loss-aversive?

Year: 2025

Type: article

Abstract: Management's perception of supply chain risks (SCR) and its corresponding strategies are critical for the survival and development of enterprises in a risky environment. We use textual analysis to construct an index of the risk posed by the supply chain according to the perception of the managers of enterprises, and explore the impact of this perception on total factor productivity (TFP) based on a set of Chinese enterprises listed on the Chinese stock exchange from 2012 to 2021. We claim that enterprises whose managers perceive a higher risk posed by the supply chain have a higher TFP than other companies. Our analysis shows that when managers perceive the risk of the supply chain, they can promote the TFP of their enterprises by investing in human capital, R&D, and digital technologies instead of investing in expansion. The results of a heterogeneity analysis show that the positive impact of the managers' perception of SCR on the TFP of their enterprises is stronger in enterprises located in regions with a higher marketization, have lower constraints on financing, or have managers with a higher risk preference. These results suggest that the “opportunity-seeking effect” of SCR plays a dominant role in Chinese firms.

Source: International Journal of Production Economics

DOI: 10.1016/j.ijpe.2025.109822

Authors: Zhaohui Zhu, Longchao Huang, Wensheng Huang

Institutions: Zhejiang Gongshang University, Zhejiang Gongshang University Hangzhou College of Commerce

Language: English

Topic: Supply Chain Resilience and Risk Management

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: hybrid

Estimated APC paid: $4,420