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The impact of financialization on firm resilience: A supply chain perspective

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  • Qi, Yinan
  • Liu, Fei

Abstract

Amid the escalation of geopolitical tensions, economic turbulence, and global supply disruptions, financialization has emerged as an increasingly pivotal way to shape firm resilience. Previous research has predominantly concentrated on the risks associated with financialization at the individual firm level. This study explores the mechanisms through which financialization impacts firm resilience, both directly and via supply chain dynamics. Drawing on a comprehensive panel of dyadic (buyer-supplier) quarterly data from Chinese listed companies from 2016 to 2023, we discover that the financialization of the buyer (the focal firm of this study) significantly erodes its resilience. Moreover, buyer financialization has a spillover effect that induces supplier financialization, and in turn, supplier financialization undermines the resilience of the buyer. Further analysis reveals that supply chain relationship duration weakens the positive effect of buyer financialization on supplier financialization and alleviates the negative impact of supplier financialization on buyer firm resilience. This research contributes substantially to the literature on financialization, supply chain spillover, and firm resilience by revealing the interfirm dynamics that shape resilience outcomes. It also offers practical implications for managers seeking to balance financial investment strategies with supply chain stability under conditions of global uncertainty.

Suggested Citation

  • Qi, Yinan & Liu, Fei, 2026. "The impact of financialization on firm resilience: A supply chain perspective," International Journal of Production Economics, Elsevier, vol. 294(C).
    • Handle: RePEc:eee:proeco:v:294:y:2026:i:c:s0925527325003846
    DOI: 10.1016/j.ijpe.2025.109899
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