Research On The Effect Of Supply Network Location On Enterprise Operating Risk

The occurrence of the COVID-19 pandemic exposed a number of shortcomings in business operations,disrupted the usual business activities of enterprises,and even led to the shutdown of enterprises,which severely damaged the operation and development of enterprises.To win and maintain a competitive edge,reducing the business risk is the goal in the process of enterprise operation,and is the basis to ensure the maximum profit.Each enterprise occupies a different network position in various forms of network,influenced by other enterprises.Therefore,many scholars have turned their attention to studying issues such as enterprise competition and risk from the perspective of enterprise network.However,most of the previous studies analyzed the enterprise risk from the internal factors such as technology and knowledge,rarely involving the external network environment and the network embedded behavior and influence of enterprises.In this context,discussing the impact of supply network location on enterprise business risk and how corporate structural capital and social capital adjust respectively in this impact will help to explain the inter organizational resource transfer and enterprise business risk impact mechanism from the network relationship level,and reveal whether they follow the resource-based theory or the resource curse theory.And that’s also the major question that we’re going to explore in this article.On the basis of this,this thesis focuses on the following three aspects:First of all,in this paper,we review the related literature about commercial risk and network location,and make sure the research content and method of this paper.Comprehensively define the business risk,supply network location,structural capital and social capital of enterprises,and deeply study the social network theory,resource based theory,resource curse theory and other related theories.On the one hand,it provides a solid theoretical basis for this research to be completed smoothly,it provides a strong factual basis for the impact of supply network location on the business risk of enterprises,At the same time,it helps readers better understand the regulatory role played by structural capital and social capital.Secondly,on the basis of the above documents,the theory analyses the effect of the location of the supply network(network centrality and structure hole)on the listed manufacturing companies in China on business risk and the regulatory role played by structural capital and social capital according to relevant theories,and basis on the theoretical analysis presents the research hypothesis.From 2015 to 2019,the data of Chinese and Shenzhen A-share manufacturers in Guotai an database,we built a supply network through the data of the top five suppliers and customers of each company,quantized the network using social network analysis,and tested the impact of supply network location on business risk and how social capital and structural capital play the role of risk diversification using econometric regression model.At last,a series of empirical and robust tests are carried out for the related data.In addition,it is verified whether the impact of supply network location on business risk will change based on the three types of enterprise heterogeneity:enterprise size,enterprise ownership and whether it belongs to high-tech enterprises.In view of the above relationship between the supply network location and the business risk of enterprises,Measures and strategies are proposed for the management of enterprise’s commercial risk in a targeted and systematic way through structural capital and social capital,respectively.Finally,the paper summarizes the important conclusions of this paper,and indicates its deficiencies and prospects for further study.