The impact of social capital on major customer supply chain power

G M Wali Ullah; Tony Cavoli; Isma  Khan; Mohammad Abdullah

doi:10.1016/j.econlet.2024.111725

The impact of social capital on major customer supply chain power

G M Wali Ullah, Tony Cavoli, Isma Khan, Mohammad Abdullah

College of Business, Government and Law

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Abstract

We investigate the impact of regional social capital on firms' ability to attain bargaining power over their supply chain partners. Using ordinary least squares and instrumental variables estimations, we find a positive relationship between firm-level supply chain power and US county-level social capital. Additionally, we observe this positive effect to be stronger for firms in durable goods manufacturing and the services industry, but not for nondurable goods manufacturers. We conclude that firms headquartered in US counties with high social capital are preferred by suppliers, resulting in greater supply chain power.

Original language	English
Article number	111725
Number of pages	5
Journal	Economics Letters
Volume	238
Early online date	21 Apr 2024
DOIs	https://doi.org/10.1016/j.econlet.2024.111725
Publication status	Published - May 2024

Keywords

Customer-supplier relationship
Social capital
Supply Chain Power
Major customer

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title = "The impact of social capital on major customer supply chain power",

abstract = "We investigate the impact of regional social capital on firms' ability to attain bargaining power over their supply chain partners. Using ordinary least squares and instrumental variables estimations, we find a positive relationship between firm-level supply chain power and US county-level social capital. Additionally, we observe this positive effect to be stronger for firms in durable goods manufacturing and the services industry, but not for nondurable goods manufacturers. We conclude that firms headquartered in US counties with high social capital are preferred by suppliers, resulting in greater supply chain power.",

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AU - Cavoli, Tony

AU - Khan, Isma

AU - Abdullah, Mohammad

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N2 - We investigate the impact of regional social capital on firms' ability to attain bargaining power over their supply chain partners. Using ordinary least squares and instrumental variables estimations, we find a positive relationship between firm-level supply chain power and US county-level social capital. Additionally, we observe this positive effect to be stronger for firms in durable goods manufacturing and the services industry, but not for nondurable goods manufacturers. We conclude that firms headquartered in US counties with high social capital are preferred by suppliers, resulting in greater supply chain power.

AB - We investigate the impact of regional social capital on firms' ability to attain bargaining power over their supply chain partners. Using ordinary least squares and instrumental variables estimations, we find a positive relationship between firm-level supply chain power and US county-level social capital. Additionally, we observe this positive effect to be stronger for firms in durable goods manufacturing and the services industry, but not for nondurable goods manufacturers. We conclude that firms headquartered in US counties with high social capital are preferred by suppliers, resulting in greater supply chain power.

KW - Customer-supplier relationship

KW - Social capital

KW - Supply Chain Power

KW - Major customer

U2 - 10.1016/j.econlet.2024.111725

DO - 10.1016/j.econlet.2024.111725

M3 - Article

SN - 0165-1765

VL - 238

JO - Economics Letters

JF - Economics Letters

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The impact of social capital on major customer supply chain power

Abstract

Keywords

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