Supplier concentration, market power and R&D investment

• Kung-Cheng Ho ^[3] ; Renji Sun ^[1] ; Yu-Xin Li ^[4] ; Zikui Pan ^[2]
  1. [1] East China University of Political Science and Law

     East China University of Political Science and Law

     China

     
  2. [2] Jinan University

     Jinan University

     China

     
  3. [3] School of Finance, Fuzhou University of International Studies and Trade, China
  4. [4] Pricewaterhouse Coopers ZhongTian LLP, China

  Mostrar afiliaciones +
• Localización: Revista española de financiación y contabilidad, ISSN 0210-2412, Vol. 52, Nº 2, 2023, págs. 264-293
• Idioma: inglés
• DOI: 10.1080/02102412.2022.2054167
• Texto completo no disponible (Saber más ...)
• Resumen

  • This paper examines the relationship between supplier concentration and R&D investment of Chinese firms using the sample of all A-share listed companies on the Shanghai Stock Exchange and Shenzhen Stock Exchange from 2008 to 2015. Empirical results present the significant negative relationship between supplier concentration and firms’ R&D expenditure. Further analysis indicates that the weaker the firm’s market power, the stronger the negative impact of supplier concentration on the firm’s R&D investment. This paper enriches corporate R&D investments, supply chains, and market power literature. As developing countries deepen their participation in global supply chain networks and transform through technological upgrading, the findings of this paper have important practical implications for developing country firms to overcome R&D resistance and for policymakers to lead industrial development.

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