How employee-generated business outlook ratings affect supplier–customer relationships: evidence from Glassdoor

Purpose Despite the growing importance of employee insights shared on social media, the literature has largely overlooked their role in supply chain relationships, particularly how employees' forward-looking assessments of firms shape customers' supply chain decisions. Design/methodology/approach Based on 7,722 supplier–customer–year observations spanning 2012–2024, this study empirically examines how employee-generated business outlook ratings on Glassdoor influence supplier–customer relationship stability. To strengthen the relationship, the study employs a difference-in-differences approach, instrumental variable estimation, and a series of robustness tests. Findings Suppliers with more positive employee-generated business outlook ratings are less likely to experience the discontinuation of principal supplier–customer relationships. The results support both information asymmetry reduction and labor risk mitigation mechanisms. Customer bargaining power strengthens this effect, whereas longer-standing partnerships attenuate it. Additional analyses show that the informativeness of employee-generated business outlook ratings aligns with the wisdom-of-crowds phenomenon and varies by reviewer attributes and job functions. Originality/value This study introduces employee-generated business outlook ratings as a low-cost prospective soft-information signal that complements traditional supply chain risk assessment. By showing that employee disclosures inform customer-side supplier evaluation and relationship management decisions, it extends the literature on the broader value of employee disclosures in supply chain contexts. Furthermore, by identifying underlying mechanisms and boundary conditions through which employee-generated business outlook ratings become decision-relevant, this study enhances the understanding of non-traditional information flows in supplier–customer relationships.