From risk to resilience: causal evidence on the impact of foreign investment security reviews on high-tech supply chains

Purpose This study examines whether foreign investment security reviews affect the supply chain resilience (SCR) of Chinese high-tech enterprises and identifies the mechanisms through which firms respond to external institutional pressure. Design/methodology/approach This study utilizes the enactment of the US Foreign Investment Risk Review Modernization Act (FIRRMA) as a quasi-natural experiment to assess its impact on the SCR of Chinese high-tech A-share listed enterprises from 2011 to 2023. Employing a double machine learning framework, the analysis provides robust causal inference and systematically explores the underlying mechanisms. Findings FIRRMA significantly enhances SCR. This improvement is primarily driven by strengthening R&D intensity, promoting digital transformation, and advancing intelligent supply chain management. The effect is more pronounced among non-state-owned enterprises, those in growth or maturity stages, and enterprises in highly competitive industries. Further analysis reveals a synergistic effect between FIRRMA and China's pilot policy for supply chain innovation and application, which amplifies the positive impact under specific conditions. Originality/value From a performance management perspective, this study shows how external institutional shocks reshape resilience-oriented performance by encouraging high-tech firms to reconfigure innovation, digital, and supply chain management capabilities.