Corporate Innovation Along the Supply Chain
By Yongqiang Chu, X. Tian, Wenyu Wang. Management Sciences, 2018
437 citations recorded by the source corpus.
In this paper, we document a positive effect of supplier–customer geographic proximity on supplier innovation. To establish causality, we explore plausibly exogenous variation in proximity caused by customer relocations. The positive effect of supplier–customer proximity on supplier innovation is stronger when customers are more innovative themselves, when suppliers and customers are closer in technological space, and when customers’ demand accounts for a larger fraction of suppliers’ total sales. These findings suggest that the feedback channel and the demand channel are likely underlying mechanisms through which supplier–customer proximity affects supplier innovation. Overall, our paper sheds new light on the real effect of supplier–customer relationship on corporate innovation. This paper was accepted by Gustavo Manso, finance.
Subfields: Economics and Econometrics, Management Information Systems, Marketing
View Paper: https://www.semanticscholar.org/paper/cc1f3af88eed1b16ddbecc7e0be146b7a3e55d87
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Citations in the corpus
- The real effect of partial privatization on corporate innovation: Evidence from China's split share structure reform (2020, background): “…insider trading (Levine et al., 2017), technology spillovers (Byun et al., 2019), financial innovation (Chang et al., 2019), customers' feedback (Chu et al., 2019), financial market development and liberalization (Hsu et al., 2014; Moshirian et al., 2020), financial reporting frequency (Fu et…”
- Do Antitakeover Provisions Spur Corporate Innovation? A Regression Discontinuity Analysis (2018, neutral): “…Mao, Tian, and Wolfe (2015), He and Tian (2013), Nanda and RhodesKropf (2013), Hsu, Tian, and Xu (2014), Seru (2014), Bradley, Kim, and Tian (2017), Chu, Tian, and Wang (2018), and Gu, Mao, and Tian (2018)).5 Our paper contributes to this empirical literature by documenting that ATPs provide some…”