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Panel B presents the descriptive statistics of T A B L E 1 Sample statistics for the 53 tier-one US suppliers to ZTE Panel A: Most frequently occurring corporate headquarters locations (states)
Source publication
Government trade actions are an increasing source of supply chain risk. This research provides empirical evidence of the stock market reaction to trade actions against a targeted firm on other firms in the targeted firm's supply chain eco‐system. We test our hypothesized stock price effects using the case of the 2018 US government ban on US firms f...
Contexts in source publication
Context 1
... search yields 295 unique firms that supply direct material to at least one of the 53 tier-one US suppliers. Table 2 Panel A gives the descriptive statistics of this sample. The sample of tier-two suppliers includes firms headquartered in 20 different countries. ...Context 2
... test H3 by examining the tier-two suppliers of ZTE that supply direct material to the tier-one US suppliers of ZTE. As mentioned earlier, we use the Bloomberg SPLC database to identify suppliers for each of the 53 tier-one US suppliers of ZTE to generate a sample of 295 tier-two suppliers of ZTE from 20 different countries (see Table 2 Panel A). Table 6 presents the results for the tier-two suppliers of ZTE. ...Citations
... The specialized literature includes several debates regarding the development and innovation of enterprises in emerging economies (EEE) to promote innovation through mobility and the attraction of talents [23], but also the adoption of public policies of innovation networks in the country of origin [24]. Although EEE faces technical sanctions, product entry bans and supply chain disruptions [22,25,26], these challenges have contributed to adaptive organizational change by imposing new strategies of innovation and transformation of EEE based on extreme conditions [22,26]. This study aims to promote the digital transformation of enterprises in Eastern Europe by investigating the effect of digital transformation on economies and whether the influencing factors for different economies differ. ...
... The specialized literature includes several debates regarding the development and innovation of enterprises in emerging economies (EEE) to promote innovation through mobility and the attraction of talents [23], but also the adoption of public policies of innovation networks in the country of origin [24]. Although EEE faces technical sanctions, product entry bans and supply chain disruptions [22,25,26], these challenges have contributed to adaptive organizational change by imposing new strategies of innovation and transformation of EEE based on extreme conditions [22,26]. This study aims to promote the digital transformation of enterprises in Eastern Europe by investigating the effect of digital transformation on economies and whether the influencing factors for different economies differ. ...
In the current era, the economic model that measures the dependence of the training offered by companies to their employees on certain variables allows for identifying the steps taken on account of digital transformations, given the fact that companies want to be competitive, to develop sustainably and the positive effect to it spreads globally. However, how digital transformation contributes remains unclear in both the literature and practice. Five descriptors of information on the economy in relation to the digital economy were extracted from the Eurostat database, and data on eight Eastern European countries in the period 2012–2020 served as primary data in the analysis. A generalized linear model was used as a statistical tool to infer the data series. Following the statistical regression analysis, it was found that the variable measuring the share of companies that offered training for the development/improvement of information and communication technology (ICT) skills is influenced by the combined effect of several other variables: ‘country’, ‘country × year’, ‘country × share of ICT personnel in total employees’, year × “share of ICT sector in GDP”. Based on the results, we noticed that the studied countries are included in two groups with distinct features, which influence the obtained GLZ model, showing the increase in the dependency effect or, on the contrary, the decrease in this effect.
... This part uses cross-sectional regression to analyse the impact of factors included in H2-H4 on the stock market value of SCCSM announcements (Jacobs, Singhal, and Zhan 2022). The cumulative average ARs on the day [0, 1] are used as the dependent variables. ...
... As Kim and Henderson (2015) stated, the resource allocation of an enterprise is not a closed system but rather a system that can integrate and optimize internal and external resources. When firms cannot independently acquire the necessary resources, they rely on relationships with suppliers and customers to drive synergies and resource sharing among supply chain partners, thereby fostering unique core competitive capabilities (Jacobs, Singhal, and Zhan 2022). ...
... Firstly, the existing literature lacks specialised analysis of the semiconductor industry, especially chip companies and this proposed research supplements accordingly. Secondly, previous studies have used different research methods, including using financial risk indicators to construct data analysis models, literature reviews and surveys (Chiu & [15]. Risk identification aims to identify all potential supply chain threats, including various risk types and factors (Kern et al., 2012) [17]. ...
... The disruption of the supply chain has a negative economic impact on ZTE's supply chain partners. Some suppliers and customers have more bargaining power due to the weak position of ZTE, resulting in an increase in operating costs for ZTE (Jacobs et al., 2022) [15]. The uncertainty caused by political risks arising from international trade issues has prompted other Chinese companies such as ZTE to reduce their dependence on US suppliers and increase their capacity for independent innovation. ...
... Supply chain resilience (SCR) refers to a firm's ability to prepare for, respond to, and recover from disruptions in its supply chains (Chowdhury & Quaddus, 2016). SCR is becoming increasingly crucial, especially nowadays when supply chain systems are rife with tensions from unconventional emergency and disruption risks (Um & Han, 2021;Zhao et al., 2019), for example, the 2018 US government ban on ZTE, the 2020 COVID-19 pandemic, and the 2021 Suez Canal obstruction (Aslam et al., 2022;Jacobs et al., 2022). Therefore, both academia and industries 1 emphasize the imperative for firms to prioritize the development of SCR, as numerous firms have experienced significant disruptions in their supply chains, or even perished due to the shock (Li, Zhao, et al., 2023;World Economic Forum, 2021). ...
Many antecedents identified as essential to supply chain resilience (SCR) are often studied independently, without considering their synergistic effects. Based on a case study and resource orchestration theory, this article focuses on configurations of different antecedents regarding supply chain integration and big data analytics capability to develop proactive and reactive SCR. Using survey data from 277 Chinese manufacturing firms, we consider three dimensions of supply chain integration, information integration, operational integration and relational integration, and three dimensions of big data analytics capability, technical skills, managerial skills and data driven‐decision culture, and conduct fuzzy‐set qualitative comparative analysis (fsQCA) to explore antecedent configurations generating high proactive and reactive SCR. We find that multiple antecedent configurations can achieve high SCR and configurations for high proactive and reactive SCR are not identical, which may involve alternative effects across different antecedents. We further implement propensity score matching analysis and reveal that firms following these configurations for high SCR also have better economic and operational performance. Moreover, we check the robustness of findings by using secondary data and attributes analysis with machine learning. This article complements and extends existing SCR literature from the configurational perspective and provides practical insights for managers to build SCR.
... As sustainability awareness increased, Volkswagen implemented measures to reduce the severity of its environmental misconduct, leading to a decrease in violation severity, supporting Hypothesis 1b. Moreover, ZTE, a Chinese telecommunications company that faced sanctions from the United State government for violating trade restrictions, illustrates this relationship (Jacobs et al., 2022). As sustainability awareness grew, ZTE took just transition measures to mitigate the situation, resulting in reduced violation severity. ...
... In contrast, during 2021:08-2021:10, a negative correlation between sustainability awareness and violation severity is observed, consistent with Hypothesis 1b. Evergrande is a Chinese real estate company that faced a debt crisis and scrutiny for its environmental and social practices (Jacobs et al., 2022). Increased sustainability awareness led Evergrande to address its debt issues and just transition concerns, resulting in reduced violation severity. ...
This study introduces the Dynamic Just Transition Interaction Model (DJTIM), which integrates Stakeholder Theory, Institutional Theory, and Resource Dependence Theory, to investigate the reciprocal causal relationship between sustainability awareness and corporate misconduct in China. Utilizing the bootstrap subsample rolling window Granger causality test, the authors examine the influence of sustainability awareness on the frequency and severity of violations, uncovering intricate dynamics that vary across different periods and factors. Our findings offer valuable insights for policymakers and stakeholders, emphasizing the need for a nuanced interpretation of data and targeted policy recommendations during the just transition process. Furthermore, this research has practical implications for corporations in China and other emerging markets, providing guidance on managing public scrutiny, mitigating misconduct risks, and fostering responsible business practices. The proposed DJTIM framework enriches the existing literature on just transition and corporate responsibility, contributing to the advancement of sustainable development goals.
... Stock market reactions to global supply chain disruptions from the 2018 US government ban on ZTE is investigated. The tier-one US suppliers experienced a stock price effect of − 3.33% following the ban, and the reaction was more negative for those suppliers more dependent on ZTE for revenues (Jacobs et al. 2022). Since the commencement of the COVID-19 crisis, more than 20 nations have put export restrictions on agri-food items. ...
China’s flat panel display industry boasts the largest scale worldwide and injects sustained momentum into the global flat panel display supply network. Flat panel displays being exchanged in international flows are deeply characterized by each Chinese province, forming the Chinese overseas flat panel display supply network. Network science is applied to investigate the emergent topology and disruption risk propagation of supply networks. Therefore, this study first constructs weighted and directed Chinese overseas flat panel display supply networks from 2017 to 2021 to investigate the visible risks of these networks by macroscopic and microscopic structures. Second, the hidden risk sources are revealed in supply networks using the proposed risk propagation model in supply, demand, and cooperation disruption scenarios related to China’s zero-COVID policy. The finding reveals that the visible supply risks are focused on the Yangtze River Delta region and Guangdong province, and the demand risks for flat panel d0069splays are also concentrated in these provinces. China’s supply of flat panel displays to the USA is gradually shifting to Southeast Asian countries. Additionally, the hidden risks are mainly concentrated in the eastern coastal provinces of China. The hidden cooperation risks are focused between Guangdong province and the USA, and South Korea. These findings will be helpful for determining which provinces or countries are risky sources or for offering an early warning mechanism and helpful for a more resilient and robust supply network.
... We also controlled the environmental dimension of SSCM, year and industry effect in the regression model. The explanatory effects of these factors are established in previous event studies and SSCM research (Jacobs et al., 2022;Kim et al., 2019;Lam et al., 2019a). ...
Purpose - Sustainable supply chain management (SSCM), driven by the downstream buyers’ power, transfers sustainability responsibilities to the upstream supplier. In contrast to the heavily focused buyers’ perspective in the literature, we investigate how this buyer-driven SSCM influences suppliers’ performance, using the measure of stock market reaction.
Design/methodology/approach – Grounded by the resource dependence theory (RDT), we empirically analyze the power effect on suppliers. Event study methodology and regression analysis are used, based on a sample of 1977 paired supplier observations from 1990 to 2016.
Findings – The result suggests that although a negative stock market reaction for suppliers in SSCM exists, the effect is less negative at a high level of buyer and supplier dependence. For the investigation of the ‘consolidated SSCM initiative,’ where buyers acquire exogenous power by collaboratively managing SSCM with their peers, we uncover that the negative impact of this consolidated SSCM initiative can be mitigated by the high interdependence that generates
relational norms in the dyads.
Research limitations/implications – We focus on dyadic relationships. Future research can use our findings to study the SSCM diffusion to lower-tier suppliers.
Practical implications – This paper has good managerial implications for both suppliers and buyers. We propose dependence-based strategies for supplier managers to reduce uncertainty in SSCM. Moreover, buyer managers can use our findings to strengthen suppliers’ commitment.
Originality - The novelty of examining the suppliers’ perspective contributes to exploring the supply chain impact of SSCM. We extend RDT and show that high dependence is not necessarily detrimental to suppliers in this buyer-driven SSCM context. The interesting finding of interdependence in the context of the consolidated SSCM initiative brings new insights that relational norms constrain the leverage of power in the dyads and are beneficial to the powerdisadvantageous
suppliers.
... However, operational slack, research and development (R&D) expenditures, and a product differentiation strategy of firms help mitigate the negative impact of foreign competition. Jacobs and Singh (2022) used an event study approach to examine the impact of government sanctions on a firm and its supply chain. In 2018, the U.S. Department of Commerce prohibited domestic firms from supplying products to ZTE, a Chinese telecommunication producer. ...
Purpose
This paper examines the influence of geopolitical tensions—operationalized as political divergence between governments—on firms’ foreign supply bases and the resulting effects on supply base complexity and sub-tier supplier sharing.
Design/methodology/approach
The authors conduct panel data regression analyses over the period 2003–2019 to investigate whether political divergence affects foreign supply bases for 2,858 US firms sourcing from 99 countries and to examine how political divergence exposure impacts the supply network structures of 853 US firms.
Findings
Firms reduce their supply bases in countries exposed to heightened geopolitical tensions. These supply chain adjustments are associated with increased supply base complexity and greater sub-tier supplier sharing.
Originality/value
This study highlights the importance of state relations in global supply chain reconfiguration. Political divergence between governments provides a dual-view of political risk (i.e. buyer–supplier countries), which can help firms anticipate geopolitical disruptions. While reducing supply bases in foreign countries facing heightened geopolitical tensions is intended to mitigate disruptions, these supply base adjustments are linked to increased supply base complexity and sub-tier supplier sharing, thereby exposing firms to other types of supply disruptions. Additionally, this research contributes to understanding the effects of geopolitical tensions on supply base complexity through the lenses of transaction cost economics and resource dependence theory.
