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Industrial robot adoption and geographical customer distribution strategy: Evidence from China

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  • Xu, Rui
  • Xie, Junqi
  • Pang, Shumei

Abstract

This study examines whether and how industrial robot adoption affects the corporate strategy of the geographical distribution of customers. Using a sample of 6027 firm-year observations from the Chinese industrial enterprises for the period 2009–2022, we find that firm's robot adoption can significantly increase the geographical distance between enterprises and their customers to broaden the geographical distribution of the supply chain. Further mechanism tests show that the adoption of robots in production can improve a firm's product intrinsic competitiveness and alleviate a firm's external information constraint, thereby increasing the geographical distance between enterprises and their customers. In addition, we find that the above-mentioned effect of robot adoption on a firm's geographical distance between enterprises and their customers is more pronounced for firms headquartered in regions with better transportation infrastructure, firms that have high industry competition intensity, firms that have greater customer dependence. Tests of economic consequences reveal that, in scenarios of more robots, firms' strategic geographic adjustments in customer selection can favourably impact their supply chain management efficiency and operational risk. Altogether, this study provides micro evidence on the relationship between robot adoption and geographical distribution of the supply chain, providing significant implications for global supply chains.

Suggested Citation

  • Xu, Rui & Xie, Junqi & Pang, Shumei, 2026. "Industrial robot adoption and geographical customer distribution strategy: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 96(C).
    • Handle: RePEc:eee:pacfin:v:96:y:2026:i:c:s0927538x25003518
    DOI: 10.1016/j.pacfin.2025.103014
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