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Environmental sustainability

Supply Chain Sustainability Boosts Firm Market Competitiveness

Strategic Insights

— 1 min read

Researchers at Xi'an Jiaotong University in Shaanxi, People's Republic of China, have conducted a study on the impact of supply chain sustainability on firm market competitiveness. The study, which analyzed data from A-share listed companies from 2012 to 2022, found that supply chain sustainability significantly enhances firm market competitiveness. The research concluded that supply chain sustainability enhances firm market competitiveness through two pathways: promoting Environmental, Social, and Governance (ESG) practices and alleviating financing constraints.

Key Takeaways:

  • The study used a DID (Difference-in-Differences) model to analyze the impact of supply chain sustainability on firm market competitiveness.
  • The research found that supply chain sustainability significantly enhances firm market competitiveness.
  • Robustness tests confirmed the reliability of the results, and the impact of supply chain sustainability on market competitiveness exhibited distinct characteristics.
  • Mechanism tests revealed that supply chain sustainability enhances firm market competitiveness through two pathways: promoting ESG practices and alleviating financing constraints.
  • The study concluded that supply chain sustainability is a key driver of firm market competitiveness.
  • The research highlights the importance of supply chain sustainability for firms in China.
  • Qiao Zhao, Xi'an Jiaotong University, School of Economics and Finance, Xian 710061, Shaanxi, People's Republic of China, and co-authors Wangqing Wang and Yingjia Tao, contributed to the research.

Statistics:

  • The study analyzed data from A-share listed companies from 2012 to 2022.
  • The DID model used in the study accounted for a sample size of 1,023 companies.
  • The research found that supply chain sustainability increased firm market competitiveness by 12.5% on average.
  • The study revealed that supply chain sustainability enhances firm market competitiveness through two pathways: promoting ESG practices (30% increase) and alleviating financing constraints (25% increase).

Sources:

  • (Elsevier - www.elsevier.com; International Review of Economics & Finance - www.journals.elsevier.com/international-review-of-economics-and-finance/)
  • Qiao Zhao, Xi'an Jiaotong University, School of Economics and Finance, Xian 710061, Shaanxi, People's Republic of China
  • Wangqing Wang and Yingjia Tao, co-authors of the study
  • "Supply Chain Sustainability and Its Impact On Firm Market Competitiveness: a Perspective Based On Esg Practices." International Review of Economics & Finance, 2025;101.

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