How Supplier Ownership Concentration Affects Bargaining Power: Evidence from China’s Manufacturing Listed Companies

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Authors: Haonan Sun, Hongliang Lü
Cited by: 1
References: 28

Abstract

Against the backdrop of China’s economic transformation and the transition towards sustainable industrial systems, optimizing ownership structures to enhance the resilience and bargaining power of manufacturing suppliers has become crucial for building sustainable supply chains. This study empirically examines the impact of ownership concentration on supplier bargaining power using data from manufacturing companies listed on the Shanghai and Shenzhen A-share markets from 2008 to 2022, integrating insights from principal-agent theory and industrial dynamics within a sustainability-oriented framework. The findings reveal: (1) Ownership concentration significantly strengthens the bargaining power of supplier enterprises, contributing to more stable and equitable supply chain relationships. (2) R&D investment plays a partial mediating role between ownership concentration and supplier bargaining power, suggesting that innovation efforts—often aligned with green and sustainable technologies—can reshape dependency dynamics. (3) Industry competitiveness negatively moderates the relationship between ownership concentration and supplier bargaining power, indicating that intense competition may undermine the governance advantages of concentrated ownership in sustainable value creation. (4) Heterogeneity analysis shows that the positive effect of ownership concentration is more pronounced in central and western regions, state-owned enterprises, and large firms, highlighting contextual factors in achieving sustainable supply chain governance.

Fields of Study & Subjects

Supply Chain Resilience and Risk Management Sustainable Supply Chain Management Global trade sustainability and social impact

Publication details

Journal / source
Sustainability
Publisher
MDPI AG
Volume
18
Issue
2
Pages
721–721
Publication date
10 January 2026
Language
EN