Welcome to the research seminar organized by the Accounting Department at SSE. The speaker, Tzu-Ting Chiu (NHH), will present the paper  “Does Social Connectedness between Geographic Regions Mitigate Supply Chain Investment Inefficiency?”

Abstract
This study examines the influence of social connectedness between customers and suppliers, as measured by the frequency of Facebook friendship links between their headquarters locations, on supplier investment efficiency. We find that higher social connectedness between supplier and customer headquarters locations is associated with reduced supplier investment inefficiency, particularly for underinvestment. In addition, we find that the negative association between social connectedness and supplier underinvestment is more pronounced when customer information environments are less transparent and when suppliers face higher hold-up risk from their customers. Our findings highlight the role of cross-region social connectedness in improving supply chain decision-making.

Please contact irina.gazizova@hhs.se if you have any questions.