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

Jia, F.; Xu, Y.; Chen, L.; Fernandes, K.

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, we investigate the relationship between SCC and manufacturing firms’ sustainability performance and the moderating roles of operational slack and information transparency.

Design/methodology/approach: We 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.

Citation

Jia, F., Xu, Y., Chen, L., & Fernandes, K. (2023). Does supply chain concentration improve sustainability performance: the role of operational slack and information transparency. International Journal of Operations & Production Management, https://doi.org/10.1108/IJOPM-12-2022-0807

• Journal Article Type: Article
• Acceptance Date: Sep 12, 2023
• Online Publication Date: Dec 4, 2023
• Publication Date: Dec 4, 2023
• Deposit Date: Sep 15, 2023
• Publicly Available Date: Dec 4, 2023
• Journal: International Journal of Operations & Production Management
• Print ISSN: 0144-3577
• Publisher: Emerald
• Peer Reviewed: Peer Reviewed
• DOI: https://doi.org/10.1108/IJOPM-12-2022-0807
• Public URL: https://durham-repository.worktribe.com/output/1739208