Linking Supply Chain Collaboration, Collaborative Advantage, and Firm Performance in China: The Moderating Role of Government Subsidies

Abstract

Supply chain collaboration is acknowledged for its benefits, but realizing these advantages can be challenging. The role of government subsidies in supply chain collaboration, collaborative advantage, and firm performance remains unclear. In this study, we explored how supply chain collaboration can enhance firm performance and the roles of collaborative advantage and government subsidies in that process. Firstly, we reviewed the related literature and proposed our hypotheses. Secondly, we formulated an innovative theoretical framework and issued our questionnaire after a pilot study. After collecting and evaluating the sample data, we utilized structural equation modeling to comprehensively examine those relationships in a supply chain, unlike the previous studies on trust, firm size, etc. Lastly, in the context of government interventions, this study addresses the question: “To what extent do government subsidies influence the relationships among supply chain collaboration, collaborative advantage, and firm performance?” Our findings indicate that supply chain collaboration is fundamental in shaping collaborative advantage and firm performance, while collaborative advantage is crucial in enhancing firm performance. Additionally, government support in the form of subsidies acts as a catalyst, further enhancing the positive outcomes of supply chain collaboration and ultimately benefiting firm performance. This research underscores the strategic significance of supply chain collaboration and government subsidies in promoting overall business success. By illuminating the roles of collaborative advantage and government subsidies in this context, this study contributes to a deeper understanding of the dynamic capability involved in achieving improved firm performance through effective supply chain collaboration.