AUTHOR=Zou Meifeng , Zhang Xindong TITLE=Supplier concentration and corporate innovation input JOURNAL=Frontiers in Psychology VOLUME=13 YEAR=2022 URL=https://www.frontiersin.org/journals/psychology/articles/10.3389/fpsyg.2022.879706 DOI=10.3389/fpsyg.2022.879706 ISSN=1664-1078 ABSTRACT=

This paper studies the relationship between supplier concentration and corporate innovation input. The results show that a firm with a higher supplier concentration tends to have lower R&D investments and invention patents. Considering endogenous problems, this negative relationship is still robust by using the instrumental variable regression and propensity score matching method. Mechanism analysis shows that a firm with higher supplier concentration is impaired risk-taking capacity and occupied resources by the big suppliers. Our evidence shows that a deeper exposure to a small set of large supplier bears negative consequences for the firm. This paper sheds new light on the dark side of a high level of supplier concentration on corporate innovation.