R&D and Bargaining Power: Evidence From China

The programming committee for the 77th Annual SAM International Business Conference is pleased to announce the acceptance of the presentation R&D and Bargaining Power: Evidence From China, authored by Zeyuan Hong, Songsong Liu, and Jai Li of the Harbin Institute of Technology and Swansea University.

Presentation Abstract: This work aims to address the theoretical gaps in the literature, including the inverse-U relationship between bargaining power and R&D intensity, the reason why the inverse-U mechanism exists from the perspective of financial risk, the mediating effect of financial risk, and the moderating role of state ownership. We aim to answer the following research questions: (1) To what extent do R&D intensity affect the bargaining power of supply chain participants, and whether it affects the bargaining power in an inverse-U way? (2) To what extent does R&D intensity affect the financial risk? (3) To what extent does financial risk affect the bargaining power?

The findings of the study offer several vital contributions to theory and practice in the context of supply chain management. Theoretically, the finding suggests that R&D intensity do not always increase the bargaining power of supply chain participants, which opposes opinions that R&D intensity augments company performance. Besides, the findings of this study have opened the black box of the mediate mechanisms related to how R&D intensity affects bargaining power from the perspectives of financial risk in the inverse U-shaped relationship. Our study also has strong practical implications. The inverse U-shaped relationship between bargaining power and R&D intensity can guide the managers to improve and guarantee bargaining power using the R&D intensity threshold, and make them realize that it will bring negative effect on the bargaining process in the supply chains if they blindly increase R&D intensity regardless of the actual condition of firm operation.

Join us online to see this great paper and many more March 31 – April 2, 2022. For registration information visit www.samnational.org/conference.