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How Do Firms in Different Sectors Organize Their Supply Chains? Evidence from Transaction-Level Import Data

Author

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  • Sebastian Heise
  • Justin R. Pierce
  • Georg Schaur
  • Peter K. Schott

Abstract

Heise et al. (2021) develop a model-based empirical measure—sellers per shipment (SPS)—to characterize how firms organize supply chains in response to a quality control problem. High SPS indicates spot-market purchasing with costly inspections, while low SPS suggests long-term relationships where buyers pay an incentive premium to prevent cheating. Here, we document intuitive variation in US importers' SPS across sectors and show that shipping characteristics such as average price, quantity shipped, and shipment frequency are in each sector consistent with the model of sourcing developed in Heise et al. (2021), providing further confidence in the measure.

Suggested Citation

  • Sebastian Heise & Justin R. Pierce & Georg Schaur & Peter K. Schott, 2025. "How Do Firms in Different Sectors Organize Their Supply Chains? Evidence from Transaction-Level Import Data," AEA Papers and Proceedings, American Economic Association, vol. 115, pages 177-181, May.
    • Handle: RePEc:aea:apandp:v:115:y:2025:p:177-81
    DOI: 10.1257/pandp.20251010
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    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management

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