Table 4 Regression results Model 1 Model...

Table 4

Regression results

	Model 1	Model 2	Model 3	Model 4
Horizontal complexity		−0.012^**		−0.010^*
Horizontal complexity		(0.006)		(0.006)
Vertical complexity			0.026^**	0.024^**
Vertical complexity			(0.012)	(0.012)
Auto components	0.159	−0.888	0.431	−0.486
Auto components	(1.283)	(1.437)	(1.273)	(1.438)
Supplier location	−4.125	−3.985	−4.789	−4.625
Supplier location	(3.866)	(3.861)	(3.956)	(3.951)
Firm size	−0.484^**	−0.348	−0.459^**	−0.344
Firm size	(0.231)	(0.249)	(0.229)	(0.249)
Prior performance	−11.639	−11.747	−12.183	−12.240
Prior performance	(9.944)	(9.768)	(9.919)	(9.774)
Financial leverage	0.018	0.017	0.022	0.021
Financial leverage	(0.058)	(0.057)	(0.057)	(0.057)
Short-term debt	0.893	0.810	0.480	0.436
Short-term debt	(4.761)	(4.725)	(4.694)	(4.667)
Cash holding	2.891	2.113	2.227	1.602
Cash holding	(5.594)	(5.503)	(5.377)	(5.319)
Inventory turnover	−0.110^*	−0.114^**	−0.105^*	−0.108^*
Inventory turnover	(0.057)	(0.058)	(0.056)	(0.057)
Capital intensity	−0.848	−0.890^*	−0.865	−0.900^*
Capital intensity	(0.554)	(0.532)	(0.529)	(0.512)
Focal firm location^a	Included	Included	Included	Included
Constant	4.983	3.258	3.862	2.453
Constant	(5.556)	(5.655)	(5.547)	(5.657)
Observations	495	495	495	495
F-value	7.42^***	7.65^***	7.53^***	7.86^***
R-squared (%)	4.88	5.30	5.71	6.01

	Model 1	Model 2	Model 3	Model 4
Horizontal complexity		−0.012^**		−0.010^*
Horizontal complexity		(0.006)		(0.006)
Vertical complexity			0.026^**	0.024^**
Vertical complexity			(0.012)	(0.012)
Auto components	0.159	−0.888	0.431	−0.486
Auto components	(1.283)	(1.437)	(1.273)	(1.438)
Supplier location	−4.125	−3.985	−4.789	−4.625
Supplier location	(3.866)	(3.861)	(3.956)	(3.951)
Firm size	−0.484^**	−0.348	−0.459^**	−0.344
Firm size	(0.231)	(0.249)	(0.229)	(0.249)
Prior performance	−11.639	−11.747	−12.183	−12.240
Prior performance	(9.944)	(9.768)	(9.919)	(9.774)
Financial leverage	0.018	0.017	0.022	0.021
Financial leverage	(0.058)	(0.057)	(0.057)	(0.057)
Short-term debt	0.893	0.810	0.480	0.436
Short-term debt	(4.761)	(4.725)	(4.694)	(4.667)
Cash holding	2.891	2.113	2.227	1.602
Cash holding	(5.594)	(5.503)	(5.377)	(5.319)
Inventory turnover	−0.110^*	−0.114^**	−0.105^*	−0.108^*
Inventory turnover	(0.057)	(0.058)	(0.056)	(0.057)
Capital intensity	−0.848	−0.890^*	−0.865	−0.900^*
Capital intensity	(0.554)	(0.532)	(0.529)	(0.512)
Focal firm location^a	Included	Included	Included	Included
Constant	4.983	3.258	3.862	2.453
Constant	(5.556)	(5.655)	(5.547)	(5.657)
Observations	495	495	495	495
F-value	7.42^***	7.65^***	7.53^***	7.86^***
R-squared (%)	4.88	5.30	5.71	6.01

Note(s): Robust standard errors in parentheses;

Focal firm’s regional location dummies are included, representing Europe, North America, and other regions, with Asia as the referent category; the maximum VIF value for all models is 1.60; ^*p < 0.10,^**p < 0.05,^***p < 0.01

Source(s): Authors’ own creation

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