Supply chain network structures and firm financial performance: the moderating role of international relations

PurposeThis paper examines the relationship between supply chain network structures and firm financial performance and the moderating role of international relations. In this study, which is grounded in social capital theory and applies the perspective of systemic risk, the authors theorize the effects of supply chain network structures on firm performance.Design/methodology/approachThe authors extracted data from two Chinese databases and constructed a supply chain network of the firms concerned based on nearly 4,300 supply chain relations between 2009 and 2018. The authors adopted the fixed effects model to investigate the relationship between supply chain network structures and firm financial performance.FindingsThe econometrics results indicate that network structures, including the degree, centrality, clustering coefficients and structural holes, are significantly related to firm financial performance. A significant and negative relationship exists between international relations and firm financial performance. The authors also find that international relations strongly weaken the relationship between supply chain network structures and firm financial performance.Originality/valueThis study, which collects secondary data from developing countries (e.g. China) and explores the impacts of supply chain network structures on firm stock performance, contributes to the existing literature and provides practical implications.

Automated summary

This study examines the relationship between supply chain network structures and firm financial performance, as well as the moderating role of international relations. The results show that network structures, such as degree, centrality, clustering coefficients, and structural holes, significantly affect firm financial performance. International relations also have a negative impact on firm financial performance, and they weaken the relationship between supply chain network structures and firm financial performance.