Supply chain Holdings: The “Fire Extinguisher” or the “Fuel Booster” for supply chain Risks?

Based on relational theory, supply chain shareholding, as a novel feature of supply chains, has the potential to strengthen collaborative ties between upstream and downstream enterprises, effectively mitigating supply chain risks and acting as a “fire extinguisher.” Conversely, it may also intensify interdependencies among firms, making risk transmission within the supply network more likely, thereby functioning as a “fuel booster” for supply chain risks. This study reveals that supply chain holdings play a pivotal “fire extinguisher” role in corporate supply chain risk management, with such effects primarily driven by customer holdings. Specifically, supply chain holdings operate through three principal mechanisms: information transmission facilitation, business stability enhancement, and capital provision within supply chain networks. Heterogeneity analysis further demonstrates that the risk-alleviating effects are particularly pronounced under conditions of substantial supply chain information frictions, elevated external environmental risks, heightened financing constraints, diminished external bargaining power, or weakened shareholder control power. Moreover, the risk-mitigating effect of supply chain holdings persists even under unforeseen risk scenarios. This research not only expands the understanding of the economic consequences of supply chain holding from the perspective of supply chain risk management but also provides an important theoretical foundation for enterprises to effectively prevent supply chain risks and achieve high-quality development.