Enhancing supply chain resilience (SCRES) has emerged as a key factor in the sustainable development of enterprises. This paper examines the role of government procurement in strengthening SCRES and explores the internal mechanisms that drive this effect.
Using government procurement contract data from the China Government Procurement website and financial data from listed companies, this study applies econometric models to analyze the relationship between government procurement and SCRES while addressing potential endogeneity concerns.
The results indicate the following: (1) Government procurement significantly enhances the enterprise SCRES; (2) Mitigating financing constraints and improving internal control level are important mechanisms; (3) The effects of government procurement have a significant difference in production cycles and market competition intensity; (4) “Chain owner” enterprises and supply chain policies play a positive incentive role in the process of government procurement promoting SCRES.
This study is the first to explore government procurement and SCRES. It fills a literature gap. Using Chinese listed firms' data and econometric methods, it offers reliable insights. Measuring resilience from two dimensions (supply chain resistance and supply chain recovery), it reveals two mechanisms: easing financing and improving controls. These findings provide new theoretical views and practical policy perspectives. They guide policymakers and firms to use procurement for stronger supply chains.
