IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v34y2025i8p9637-9651.html

The Impact of Biodiversity Risk on Supply Chain Strategy: Evidence From the Chinese MNEs

Author

Listed:
  • Weiwei Fu
  • Junyi Feng
  • Giray Gozgor

Abstract

Biodiversity risk (BR) poses a significant challenge to the supply chain strategies of multinational enterprises (MNEs). This study examines the impact of BRs in both home and host countries on the supply chain strategies of Chinese A‐share listed MNEs from 1999 to 2023. We first identify the key drivers of supply chain strategy using the least absolute shrinkage and selection operator (LASSO) machine learning algorithm. Subsequently, partialing‐out LASSO linear regression (POLR) and double selection LASSO linear regression (DSLR) techniques are employed to analyze the effect of BR on supply chain decision‐making. The results indicate that BR in the home country encourages MNEs to adopt more diversified supply chains, whereas BR in the host country promotes supply chain concentration (SSC). Additionally, institutional and geographic distances weaken the positive effect of host country BR on SSC, while cultural distance does not significantly influence this relationship. The findings guide MNEs to manage their global supply chains in the face of BR, with particular attention to the institutional and geographic distances between their home and host countries.

Suggested Citation

  • Weiwei Fu & Junyi Feng & Giray Gozgor, 2025. "The Impact of Biodiversity Risk on Supply Chain Strategy: Evidence From the Chinese MNEs," Business Strategy and the Environment, Wiley Blackwell, vol. 34(8), pages 9637-9651, December.
    • Handle: RePEc:bla:bstrat:v:34:y:2025:i:8:p:9637-9651
    DOI: 10.1002/bse.70095
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.70095
    Download Restriction: no
    File URL: https://libkey.io/10.1002/bse.70095?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:bstrat:v:34:y:2025:i:8:p:9637-9651. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-0836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.