Supply chain risk management has become a core element of corporate strategy, yet systematic evidence on how innovation information disclosure affects supply chain risk remains scarce. We study how innovation information disclosure in firms’ MD they engage in more joint patenting with partners, consistent with higher switching costs and more stable relationships; and they exhibit stronger reputations and commercial credit capacity, consistent with partnerships reinforced through both trust and financial ties. The effect is concentrated among non-SOEs, high-tech firms, firms in competitive industries, and firms outside the digital economy, all settings in which information asymmetry is more severe and alternative channels for conveying innovation capabilities are limited. We also document asymmetric vertical spillovers: downstream customers’ innovation disclosure prompts upstream suppliers to become more transparent, but the reverse does not hold. Supply chain risk, by contrast, affects connected firms in both directions. These findings extend the literature on the economic consequences of innovation disclosure from capital markets to supply chain management.
Li et al. (Wed,) studied this question.