The impact of supply base geographical distance and dispersion on product quality risks: Evidence from the Chinese automobile industry

Abstract

Prior research on supply chain geographical complexity has predominantly treated geographical distance and geographical dispersion as interchangeable concepts. Further, nearly all empirical studies examining supply chain antecedents of product quality risks used samples from Western, educated, industrialized, rich, and democratic (WEIRD) countries. To improve the theoretical and practical insights from this stream of research, we theorize that, particularly for manufacturers in emerging markets, supply base geographical distance and dispersion affect product quality risks through monitoring and coordination challenges, respectively. Analyzing data from the Chinese automobile industry, we fin..