How does artificial intelligence adoption by buyers affect their upstream supply chain structure-a resource dependence theory perspective

Artificial intelligence (AI) is increasingly embedded in supply chains, yet its relationship with upstream supply chain configuration remains unclear. Drawing on resource dependence theory, this study examines the association between AI adoption and supplier concentration using panel regressions on 4,298 Chinese A-share listed firms from 2014 to 2024. Results reveal a U-shaped relationship. Financial slack attenuates this curvature, shifts the turning point rightward while the relationship remains U-shaped, and can reverse the relationship at sufficiently high levels. Capacity slack similarly attenuates the curvature and shifts the turning point rightward. Conversely, operational efficiency strengthens the curvature and shifts the turning point leftward. These findings advance understanding of how AI adoption relates to supplier concentration and identify internal operating conditions that shape this relationship.