The impact of digital technology adoption on corporate supply chain concentration: Evidence from patent analysis

• DOI: 10.1016/j.frl.2024.105413
• Publication Date: 2024-04-16T09:14:14Z
• Authors: Huiyang Zhou; Ruzhou Wang; Xiyu Zhang; Minyen Chang

This study examines the association between digital technology adoption and supply chain concentration. Using detailed patent description data of publicly listed Chinese companies over 2007-2021, we identify level in those by machine learning. We find concentration is significantly lower when higher. Results from further analysis suggest relation more prominent company, compared to rivals, gains competitive advantage. Meanwhile, age CEO industry firm belongs influence relation. Additionally, technologies improves performance companies. Overall, this suggests incorporation shapes inter-firm relationship enriches understanding relationships, which have a profound implication on management.