Supply Chain Resilience in the Digital Age

This study examines how regional rule of law affects corporate supply chain resilience. Drawing on contract theory and institutional economics, the authors argue that stronger rule of law enhances resilience through direct and indirect pathways, with intellectual property protection as a key mediator. Using 18,450 firm-year observations from Chinese listed firms (2010–2020), they find that a one-standard-deviation improvement in provincial rule of law is associated with a 0.30 standard deviation increase in supply chain resilience, with IP protection transmitting 39.3% of this effect. Heterogeneity analyses reveal stronger effects among SMEs, non-state-owned enterprises, and firms in less-developed regions. These findings remain robust across alternative measurements and specifications. The study contributes to the dialogue between institutional economics and operations management by demonstrating that macro-level legal institutions shape micro-level operational outcomes.