{"title":"Supplier concentration and operational efficiency during catastrophic risks","authors":"Lu Shen , Kevin Zheng Zhou , Yan Ye","doi":"10.1016/j.ijpe.2025.109777","DOIUrl":null,"url":null,"abstract":"<div><div>Governance for reliability has gained prominence in the post-COVID era. However, it remains unclear whether supplier concentration enhances reliable efficiency amidst supply chain risks, especially during catastrophic risks like the COVID-19 pandemic. Our research leverages the COVID-19 pandemic to assesses the impacts of supplier concentration by analyzing data from 1870 Chinese listed firms from 2017 through 2022. The results reveal a significant decline in operational efficiency as the severity of the pandemic increases, with this decline being more pronounced among firms with high supplier concentration. However, the negative interactive impact of supplier concentration and pandemic severity decreases when firms possess high levels of digitalization or relational ties. These findings highlight the importance of distinguishing between different types of supply chain risks when assessing the impact of supplier concentration and reveals risk-mitigating strategies that firms can adopt to navigate the paradoxical effects of supplier concentration amid catastrophic risks.</div></div>","PeriodicalId":14287,"journal":{"name":"International Journal of Production Economics","volume":"290 ","pages":"Article 109777"},"PeriodicalIF":10.6000,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Journal of Production Economics","FirstCategoryId":"5","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0925527325002622","RegionNum":1,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"2025/8/28 0:00:00","PubModel":"Epub","JCR":"Q1","JCRName":"ENGINEERING, INDUSTRIAL","Score":null,"Total":0}
引用次数: 0
Abstract
Governance for reliability has gained prominence in the post-COVID era. However, it remains unclear whether supplier concentration enhances reliable efficiency amidst supply chain risks, especially during catastrophic risks like the COVID-19 pandemic. Our research leverages the COVID-19 pandemic to assesses the impacts of supplier concentration by analyzing data from 1870 Chinese listed firms from 2017 through 2022. The results reveal a significant decline in operational efficiency as the severity of the pandemic increases, with this decline being more pronounced among firms with high supplier concentration. However, the negative interactive impact of supplier concentration and pandemic severity decreases when firms possess high levels of digitalization or relational ties. These findings highlight the importance of distinguishing between different types of supply chain risks when assessing the impact of supplier concentration and reveals risk-mitigating strategies that firms can adopt to navigate the paradoxical effects of supplier concentration amid catastrophic risks.
期刊介绍:
The International Journal of Production Economics focuses on the interface between engineering and management. It covers all aspects of manufacturing and process industries, as well as production in general. The journal is interdisciplinary, considering activities throughout the product life cycle and material flow cycle. It aims to disseminate knowledge for improving industrial practice and strengthening the theoretical base for decision making. The journal serves as a forum for exchanging ideas and presenting new developments in theory and application, combining academic standards with practical value for industrial applications.