Does supply chain network location drive enterprise innovation input?—A dual perspective based on relational embeddedness and structural embeddedness
Year: 2025
Type: article
Abstract: Firms' innovation decisions are strongly influenced by their embedded supply chain networks. This article adopts social network analysis and constructs supply chain network relationships based on the information of the top five suppliers and customers of all A-share listed companies in China from 2013 to 2023. This study utilizes degree centrality and structural holes to portray network location characteristics, and explores the role mechanism of supply chain network location in influencing firms' innovation investment from both relational embeddedness and structural embeddedness perspectives. It is found that supply chain network location has a significant positive correlation with enterprise innovation investment. The mediation mechanism test finds that asset specificity plays a partial mediation effect. The heterogeneity test finds that the effect of supply chain network location is more significant when firms have higher executive compensation, greater diversity in executive backgrounds, non-state-owned in the industry, and are in regions with faster marketization processes. The further research study finds that there is still a significant positive relationship between supply chain network location and enterprise innovation output. This study has important theoretical and practical significance for enterprises to optimize resource allocation, understand the importance of supply chain relationships and build a virtuous innovation cycle.
Author: Yaohao Lu
Institution: Anhui University of Technology
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $1,930
Funder: Anhui University of Technology
OpenAlex ID: W4416998902