Insights from lower-tier ICT suppliers: How network centrality in multi-tier supply chain relationships affects buyer financial performance
研究了买方、一级和二级ICT供应商在多层供应链中的网络中心性如何影响买方财务绩效，发现一级供应商的中介中心性对买方财务绩效有负面影响，而及时付款会调节中心性与绩效的关系。
: Information and communication technology (ICT) outsourcing to suppliers has the potential to enhance buyers’ product innovation and overall performance. However, the impact of technology outsourcing to lower-tier suppliers on buyers’ financial performance in multi-tier supply chain networks remains unclear. Unlike prior dyadic studies that focus on a buyer-tier1 supplier perspective, our study extends the analytical scope to encompass buyer, tier-1, and tier-2 ICT supplier triads using multi-tier supply network data from Capital IQ. Building on existing literature indicating that a buyer’s betweenness centrality negatively affects its financial performance, we further find that tier-1 suppliers’ betweenness centrality also exhibits a negative relationship with buyers’ financial performance. In addition, we provide empirical evidence that a buyer’s timely supplier payment amplifies the positive effect of buyer degree centrality on its financial performance, while alleviating the positive effect of tier-1 suppliers’ degree centrality on buyers’ financial performance. Interestingly, timely supplier payment negatively moderates the association between a buyer’s closeness centrality and its financial performance, but positively moderates the corresponding association between tier-1 supplier closeness centrality and buyer financial performance. Our empirical analysis advances theoretical understanding of lower-tier suppliers and sheds light on the bridging role of tier-1 suppliers in the literature of multi-tier supply chain relationships. These findings highlight the benefits of technology-enabled multi-tier supply network structures and their interactions with buyer-tier1 supplier relationships. This study also provides practical insights for firms to improve financial outcomes through strategic ICT outsourcing to multi-layer suppliers.