Influence of Supply Chain Geographic Proximity and Concentration on Financial Performance of Chinese Automakers

Chengbo Li

2025

Abstract

China’s automobile manufacturing industry has dominated the world’s automaking market for over a decade. However, given the trend of globalization and the intensified competition in the industry, supply chain network structure plays a vital role in Chinese automakers' financial performance. This paper utilized the inventory turnover ratio to evaluate the impact of supply chain concentration and geographic proximity on firms’ financial performance in China’s automotive manufacturing industry. To assess the impact, this research uses data of 83 firms listed on Shanghai and Shenzhen Stock Exchanges in China’s automotive manufacturing industry from year of 2010 to 2023. The main findings are: first, supply chain geographic proximity is negatively related to the inventory turnover ratio; second, supply chain concentration are negatively related to the inventory turnover ratio. Therefore, both supply chain geographic proximity and concentration can negatively impact Chinese automakers’ financial performance. This research provides insightful implications to firms and managers on how supply chain structure can impact financial performance.

Paper Citation

in Harvard Style

Li C. (2025). Influence of Supply Chain Geographic Proximity and Concentration on Financial Performance of Chinese Automakers. In Proceedings of the 2nd International Conference on E-commerce and Modern Logistics - Volume 1: ICEML; ISBN 978-989-758-775-7, SciTePress, pages 698-704. DOI: 10.5220/0013852500004719

in Bibtex Style

@conference{iceml25,
author={Chengbo Li},
title={Influence of Supply Chain Geographic Proximity and Concentration on Financial Performance of Chinese Automakers},
booktitle={Proceedings of the 2nd International Conference on E-commerce and Modern Logistics - Volume 1: ICEML},
year={2025},
pages={698-704},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0013852500004719},
isbn={978-989-758-775-7},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd International Conference on E-commerce and Modern Logistics - Volume 1: ICEML
TI - Influence of Supply Chain Geographic Proximity and Concentration on Financial Performance of Chinese Automakers
SN - 978-989-758-775-7
AU - Li C.
PY - 2025
SP - 698
EP - 704
DO - 10.5220/0013852500004719
PB - SciTePress