Must the crown bear the weight? The impact of supply chain network position on corporate innovation performance

Innovation is a key driver of firms’ competitive advantage, yet it increasingly depends on collaborative resources and knowledge flows that stem from relationships between firms. As supply chain networks evolve from linear dyadic relationships into dynamic, multi-directional networks, firms’ positions within these networks may shape their innovation performance capabilities. To respond to a knowledge gap in the connection between innovation and network position, this study constructed a supply chain network using Bloomberg’s Supply Chain Analysis (SPLC) data for Chinese A-share listed companies and examined how network position affected innovation. Degree centrality, betweenness centrality, and structural holes all positively predicted innovation firms, with these effects mediated by firms’ absorptive capacity. Results remained robust across multiple tests. Further analysis revealed that advantageous network positions drive substantive innovation over strategic innovation and traditional innovation over digital innovation. These findings advance understanding of how supply chain network placement affects firm innovation and shows the importance of distinguishing between innovation types when examining network effects.