IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v45y2024i2p652-663.html
   My bibliography  Save this article

Supplier innovativeness, supplier relationships, and enterprises' finance constraints

Author

Listed:
  • Zhiwei Li
  • Jinlong Chen

Abstract

In this study, we adopt the perspective of supplier innovation and manually collect samples of enterprises and their suppliers listed on China's Shanghai and Shenzhen A‐shares markets from 2008 to 2021 to investigate whether supplier innovativeness affects enterprises' financing constraints. We find that supplier innovativeness can significantly alleviate enterprises' financing constraints; this effect is more significant when the relationship between enterprises and suppliers is more stable and their economic dependence is higher. The analysis of the mechanism of action reveals that supplier innovativeness can alleviate enterprises' financing constraints by enhancing their innovativeness. The heterogeneity analysis finds that the alleviation effect of supplier innovativeness on enterprises' financing constraints is more significant in nonstate‐owned enterprises. We examine the factors influencing enterprises' financing constraints from the unique perspective of supplier innovativeness, enrich the literature on financing constraints and provide new ideas for enterprise managers and policymakers.

Suggested Citation

  • Zhiwei Li & Jinlong Chen, 2024. "Supplier innovativeness, supplier relationships, and enterprises' finance constraints," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 45(2), pages 652-663, March.
    • Handle: RePEc:wly:mgtdec:v:45:y:2024:i:2:p:652-663
    DOI: 10.1002/mde.4028
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/mde.4028
    Download Restriction: no
    File URL: https://libkey.io/10.1002/mde.4028?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
    ---><---

    References listed on IDEAS

    as
    1. Lou, Zhukun & Ye, Ailin & Mao, Jinye & Zhang, Chuan, 2022. "Supplier selection, control mechanisms, and firm innovation: Configuration analysis based on fsQCA," Journal of Business Research, Elsevier, vol. 139(C), pages 81-89.
    2. Xiong, Yurong & Wu, Haomin & Ding, Xin & Wu, Ji (George), 2023. "Supplier geographical concentration and corporate innovation," Finance Research Letters, Elsevier, vol. 56(C).
    3. Stanley Baiman & Madhav V. Rajan, 2002. "The Role of Information and Opportunism in the Choice of Buyer‐Supplier Relationships," Journal of Accounting Research, Wiley Blackwell, vol. 40(2), pages 247-278, May.
    4. Yingying Xin & Xiao Zeng & Zhengying Luo, 2022. "Customers' annual report tone and suppliers' innovation decisions: evidence from China," European Journal of Innovation Management, Emerald Group Publishing Limited, vol. 26(6), pages 1570-1602, April.
    5. Li, Chengming & Wang, Yilin & Zhou, Zhihan & Wang, Zeyu & Mardani, Abbas, 2023. "Digital finance and enterprise financing constraints: Structural characteristics and mechanism identification," Journal of Business Research, Elsevier, vol. 165(C).
    6. Zhefan Piao & Cecheng Wu & Ning Su & Yueqin Lin & Zihan Zheng, 2023. "Financial constraints, capital misallocation and firm’s total factor productivity (TFP) loss – empirical evidence from listed manufacturing companies in China," Applied Economics, Taylor & Francis Journals, vol. 55(39), pages 4572-4585, August.
    7. Li, Kaifeng & Xia, Bobo & Chen, Yun & Ding, Ning & Wang, Jie, 2021. "Environmental uncertainty, financing constraints and corporate investment: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 70(C).
    8. Shi, Yang & Li, Jiachen & Liu, Ruiming, 2023. "Financing constraints and share pledges: Evidence from the share pledge reform in China," Journal of Corporate Finance, Elsevier, vol. 78(C).
    9. Lee, Chi-Chuan & Lee, Chien-Chiang & Xiao, Shunyi, 2021. "Policy-related risk and corporate financing behavior: Evidence from China’s listed companies," Economic Modelling, Elsevier, vol. 94(C), pages 539-547.
    10. Luo, Qi & Li, Hui & Zhang, Biao, 2015. "Financing constraints and the cost of equity: Evidence on the moral hazard of the controlling shareholder," International Review of Economics & Finance, Elsevier, vol. 36(C), pages 99-106.
    11. Gu, Jing & Shi, Xinyu & Wang, Peini & Xu, Xun, 2022. "Examining the impact of upstream and downstream relationship stability and concentration on firms’ financial performance," Journal of Business Research, Elsevier, vol. 141(C), pages 229-242.
    12. Bo Yan & Meng‐Ru Liang, 2023. "Alleviation effect of supply chain finance on financing constraints of high‐tech small‐ and medium‐sized enterprises," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(3), pages 1634-1641, April.
    13. Kim, Minkyun & Chai, Sangmi, 2017. "The impact of supplier innovativeness, information sharing and strategic sourcing on improving supply chain agility: Global supply chain perspective," International Journal of Production Economics, Elsevier, vol. 187(C), pages 42-52.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dong, Hanmin & Zhang, Lin & Zheng, Huanhuan, 2024. "Green bonds: Fueling green innovation or just a fad?," Energy Economics, Elsevier, vol. 135(C).
    2. Guo, Siyuan & Xie, Xuejing & Chen, Meian & Gong, Yukai, 2024. "Supplier concentration and corporate carbon emissions," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 571-585.
    3. Ichev, Riste & Valentinčič, Aljoša, 2025. "The effect of impact investing on performance of private firms," Research in International Business and Finance, Elsevier, vol. 73(PA).
    4. Panagiotis Trivellas & Georgios Malindretos & Panagiotis Reklitis, 2020. "Implications of Green Logistics Management on Sustainable Business and Supply Chain Performance: Evidence from a Survey in the Greek Agri-Food Sector," Sustainability, MDPI, vol. 12(24), pages 1-29, December.
    5. Tianjiao Zhao & Xiang Xiao & Qinghui Dai, 2021. "Transportation Infrastructure Construction and High-Quality Development of Enterprises: Evidence from the Quasi-Natural Experiment of High-Speed Railway Opening in China," Sustainability, MDPI, vol. 13(23), pages 1-23, December.
    6. Sujan Piya & Ahm Shamsuzzoha & Mohammad Khadem & Nasr Al-Hinai, 2020. "Identification of Critical Factors and Their Interrelationships to Design Agile Supply Chain: Special Focus to Oil and Gas Industries," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 21(3), pages 263-281, September.
    7. Fracarolli Nunes, Mauro & Lee Park, Camila & Shin, Hyunju, 2021. "Corporate social and environmental irresponsibilities in supply chains, contamination, and damage of intangible resources: A behavioural approach," International Journal of Production Economics, Elsevier, vol. 241(C).
    8. Chen, Qian, 2024. "Media coverage, social trust and corporate financing efficiency," International Review of Economics & Finance, Elsevier, vol. 96(PA).
    9. Li, Chengming & Wang, Yilin & Zhou, Zhihan & Wang, Zeyu & Mardani, Abbas, 2023. "Digital finance and enterprise financing constraints: Structural characteristics and mechanism identification," Journal of Business Research, Elsevier, vol. 165(C).
    10. Ding, Jiantao & Yin, Yingkai & Kuang, Jinsong & Ding, Dezhi & Madsen, Dag.Øivind & Yang, Kunyu, 2024. "The impact of enterprise digital transformation on financial mismatch: Empirical evidence from listed companies in China," Finance Research Letters, Elsevier, vol. 66(C).
    11. Sheng, Dachen & Montgomery, Heather A., 2024. "The Heterogenous causality of repurchases: Analysis from the aspect of share collateralization," International Review of Financial Analysis, Elsevier, vol. 96(PB).
    12. Philipp Wetzel & Erik Hofmann, 2020. "Toward a Multi-Sided Model of Service Quality for Logistics Service Providers," Administrative Sciences, MDPI, vol. 10(4), pages 1-24, October.
    13. Frank Bodendorf & Barbara Hollweck & Jörg Franke, 2022. "Information Asymmetry in Business-to-Business Negotiations: A Game Theoretical Approach to Support Purchasing Decisions with Suppliers," Group Decision and Negotiation, Springer, vol. 31(4), pages 723-745, August.
    14. Yen Sheng Tsai & Wei-Hsi Hung, 2023. "A low-cost intelligent tracking system for clothing manufacturers," Journal of Intelligent Manufacturing, Springer, vol. 34(2), pages 473-491, February.
    15. Maciej Urbaniak & Piotr Rogala & Piotr Kafel, 2023. "Expectations of manufacturing companies regarding future priorities of improvement actions taken by their suppliers," Operations Management Research, Springer, vol. 16(1), pages 296-310, March.
    16. Mayank JAIN, 2023. "Disentangling the Concentration-Performance Nexus: An Empirical Study of Indian-Listed Firms Across Diverse Industries," CECCAR Business Review, Body of Expert and Licensed Accountants of Romania (CECCAR), vol. 4(4), pages 59-72, April.
    17. Pan Xu & Jun He & Daojuan Wang & Sofia A. Johan & Siwei Lin, 2024. "Could the simultaneous persistence of greater cash holdings and interest‐bearing debts affect stock price crash risk?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(3), pages 3226-3262, July.
    18. Lu, Yao & Li, Lu & Zhan, Huanqi & Zhan, Minghua, 2024. "Fintech, information heterogeneity, and the regional distribution effects of corporate financing constraints," Economic Modelling, Elsevier, vol. 137(C).
    19. Zheng, Xiaxuan & Chen, Yueyan, 2024. "Does supply-chain-finance help to improve the efficiency of outward foreign direct investment?," Finance Research Letters, Elsevier, vol. 59(C).
    20. Li, Mo & Li, Chunyan & Duan, Mingchen & Hou, Wenjia & Pan, Xingchen, 2024. "Analysis of the alleviating effect of accounts receivable pledge financing on financing constraints," Finance Research Letters, Elsevier, vol. 70(C).

    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:wly:mgtdec:v:45:y:2024:i:2:p:652-663. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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://www3.interscience.wiley.com/cgi-bin/jhome/7976 .

    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.