Title: Impact of supplier concentration on low-carbon innovation investment in heavily polluting manufacturing firms: moderating role of cash holdings

Authors: Qiang Meng; Nartraphee Tancho; Kusuma Dampitakse; Yu Chen

Addresses: School of Business, Fuyang Normal University, Fuyang, 236037, Anhui, China; Faculty of Business Administration, Rajamangala University of Technology, Thanyaburi, Pathum Thani, 12110, Thailand ' Faculty of Business Administration, Rajamangala University of Technology, Thanyaburi, Pathum Thani, 12110, Thailand ' Faculty of Business Administration, Rajamangala University of Technology, Thanyaburi, Pathum Thani, 12110, Thailand ' School of Business, Fuyang Normal University, Fuyang, 236037, Anhui, China; School of Business Administration and Accountancy, De La Salle University-Dasmariñas, 4115, Cavite, Philippines

Abstract: It is particularly important to promote low-carbon innovation investment of heavily polluting manufacturing firms through the supplier concentration. A pivotal factor in this relationship is the cash holdings of these entities. This study employs a multiple linear regression analysis to scrutinise the influence of supplier concentration on low-carbon innovative investment in heavily polluting manufacturing firms, while concurrently examining the moderating impact of cash holdings. The results indicate an inverted U-shaped relationship between supplier concentration and low-carbon innovation investment among heavily polluting manufacturing firms in China. Prior to reaching a critical threshold, there is an enhancement in low-carbon innovative investment concomitant with an escalation in supplier concentration. However, beyond this point, there is a subsequent, gradual diminution. Cash holdings seem to have narrowed the range of this U-shaped curve, indicating its moderating effect. Specifically, it has led to a rapid increase in low-carbon innovative investment on the left and accelerates the downward trend on the right side.

Keywords: supplier concentration; SC; low-carbon innovation investment; cash holdings; U-shaped relationship; heavily polluting manufacturing firms.

DOI: 10.1504/IJSPM.2023.138581

International Journal of Simulation and Process Modelling, 2023 Vol.20 No.4, pp.255 - 266

Received: 15 Sep 2023
Accepted: 05 Dec 2023
Published online: 13 May 2024 *

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