Can supply chain concentration drive an increase in a company's market share?

Abstract

Based on panel data from non-financial listed companies in China from 2011 to 2023, this paper employs a dual fixed-effects model to investigate the impact of supply chain concentration on corporate market share. The study finds that supply chain concentration can significantly enhance a firm's market share. Heterogeneity analysis reveals that the effect of supply chain concentration on market share exhibits significant differences across firms of different ownership types and across firms with varying levels of CEO shareholding. The moderating mechanism analysis shows that firm size, R&D intensity, and government subsidies play significant moderating roles in the relationship between supply chain concentration and market share.