Eroding operations while elevating innovation: a dual-mechanism model of supplier list disclosure

Purpose Supplier list disclosure has become a defining feature of contemporary supply chain transparency, yet leading firms exhibit strikingly divergent disclosure choices and the empirical literature reports both benefits and costs. Drawing on the relational view and signaling theory, we develop and test a dual-mechanism framework explaining how proactive supplier list disclosure simultaneously erodes operational performance while enhancing innovation performance, and identify the conditions that amplify each effect. Design/methodology/approach Using panel data from Chinese listed firms from 2012 to 2024, we empirically test the relationships between supplier list disclosure and firms' operational and innovation performance. To validate the relational mechanism underlying disclosure's impact on operational performance, we test the moderating roles of supplier concentration and buyer competition. To validate the signaling mechanism underlying disclosure's impact on innovation performance, we test the moderating roles of media coverage and CSR performance. Findings The results suggest supplier list disclosure undermines firms' operational performance but enhances their innovation performance. The negative operational effect is amplified by higher supplier concentration and greater buyer competition, as these conditions increase the criticality and vulnerability of disclosed relational assets. The positive innovation effect is amplified by stronger media coverage and better CSR performance, which improve the visibility and credibility of the disclosure signal. These results are robust across alternative measures, model specifications, and identification strategies. Originality/value Our findings reconcile the longstanding tension between the documented benefits and costs of supply chain transparency by revealing the divergent performance consequences of supplier list disclosure. This study further contributes to the supply chain transparency and buyer-supplier governance literature by identifying key boundary conditions, thereby offering actionable guidance for designing optimal supplier list disclosure strategies.