Supply Chain Stability and Enterprises’ Total Factor Productivity: From the Perspective of Development Sustainability

Because of increasing global complexities and the frequent occurrence of black swan events, the risk of supply chain disruptions intensifies, and the sustainability of enterprise development faces significant challenges. By focusing on supply chain security and aiming for sustainable enterprise development, this study explores how stable supply chains contribute to enhanced productivity of core enterprises, using the theory of social capital as a framework. An empirical analysis was conducted using a sample of A-share listed companies in Shanghai and Shenzhen, China, from 2009 to 2021. The research findings indicate that greater supply chain stability is associated with higher total factor productivity in enterprises. The mechanism test results show that the supply chain stability relationship can improve the total factor productivity of enterprises through two paths, such as improving the operation and management level of enterprises and optimizing resource allocation. After further heterogeneity analysis, it is found that the stable relationship of the supply chain has a stronger positive impact on the total factor productivity of core enterprises in the non-state-owned enterprise group, the eastern enterprise group, and the large-size enterprise group. These findings help to provide insights for enterprises to achieve sustainable development in the new era.