<p>Improving supply chain resilience (SCR) can facilitate coordination and collaboration in related firms, realize optimal allocation of resources, and enhance efficiency. However, improving the firm’s SCR may be increasingly difficult under climate change. This study analyzes how the firm’s SCR is affected by climate change, associated mechanisms, and countermeasures by matching temperature data from 2004 to 2021 with data from China’s A-share listed businesses. We find that (1) climate change significantly impedes the improvement of firms’ SCR. This conclusion remains consistent following the robustness test and endogeneity test. Meanwhile, there are heterogeneous test results in terms of geography and firms. (2) Climate change negatively affects the improvement of SCR by increasing the frequency of socio-natural disasters and the financial strains on businesses. (3) By encouraging digital development, reducing the geographic distance of supply chains, and enabling supply chain digitization, businesses can lessen the negative effects. A valuable insight is offered for further understanding and responding to how climate change affects businesses’ SCR.</p>

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Firm’s supply chain resilience under climate change: Evidence from China

  • Huan Wu,
  • Huai Deng,
  • Xincai Gao

摘要

Improving supply chain resilience (SCR) can facilitate coordination and collaboration in related firms, realize optimal allocation of resources, and enhance efficiency. However, improving the firm’s SCR may be increasingly difficult under climate change. This study analyzes how the firm’s SCR is affected by climate change, associated mechanisms, and countermeasures by matching temperature data from 2004 to 2021 with data from China’s A-share listed businesses. We find that (1) climate change significantly impedes the improvement of firms’ SCR. This conclusion remains consistent following the robustness test and endogeneity test. Meanwhile, there are heterogeneous test results in terms of geography and firms. (2) Climate change negatively affects the improvement of SCR by increasing the frequency of socio-natural disasters and the financial strains on businesses. (3) By encouraging digital development, reducing the geographic distance of supply chains, and enabling supply chain digitization, businesses can lessen the negative effects. A valuable insight is offered for further understanding and responding to how climate change affects businesses’ SCR.