The impact of structural holes on financial resilience: evidence from China

Purpose In the face of increasing international uncertainty, maintaining long-term stability and development has become a key challenge for firms dealing with severe external shocks. Resilience, a key measure of a firm’s ability to endure and adapt, strengthens traditional corporate risk management by supporting growth potential. This study aims to explore the impact of structural holes in supply chain networks on a firm’s financial resilience, offering insights into how network positioning influences firm stability. Design/methodology/approach This study constructs a decade-long supply chain network using data from Chinese A-share listed firms from 2013 to 2022 to assess each firm’s network positions and its financial resilience. The analysis focuses on structural holes and explores their effects on resilience through mechanisms like operational efficiency and financing constraints. Findings Empirical analysis indicates that firms occupying structural hole positions exhibit reduced financial resilience, driven by decreased operational efficiency and increased financing constraints. Heterogeneity analysis shows that this negative effect is more pronounced among state-owned enterprises, firms with high institutional shareholding and those with significant market advantages. Originality/value This study contributes to the literature on resilience by integrating embedding theory with supply chain network analysis. It provides a micro-level perspective on supply chain resilience and practical insights for strategic planning to mitigate network-related risks.