4.6 Article

Cascading Sustainability in Multi-tier Supply Chains: When Do Chinese Suppliers Adopt Sustainable Procurement?

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When Ignorance Is Not Bliss: An Empirical Analysis of Subtier Supply Network Structure on Firm Risk

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Summary: By analyzing granular global supply-chain data, the study quantifies the propagation of financial risk beyond direct supply-chain connections and identifies structural network properties as significant moderators of risk. Findings show that sharing of tier-2 suppliers in supply networks significantly affects focal firms' risk levels, with a stronger impact as tier-2 suppliers become more highly shared. Causal relationships are confirmed using exogenous risk events, revealing the importance of subtier network structure and tier-2 sharing as key factors in risk management.

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