Supply Chain Networks, Firm Heterogeneity, and Credit Risk Contagion: Insights from Business Linkages in the Automotive Industry

Abstract

Using the Chinese automotive industry as the research subject, this study constructs a supply chain network based on real transaction data of business interactions between upstream and downstream enterprises in the automotive sector from 2011 to 2020. It analyzes the topological properties and structure of the supply chain network, simulates the risk-bearing capacity of supply chain enterprises under risk shocks, and focuses on exploring the impact of firm heterogeneity within the supply chain network on credit risk contagion. The findings reveal that there are differences in the complexity of supply chain networks between the procurement and sales ends, with the procurement network being more complex. Additionally, different supply chain network structures exhibit varying levels of risk perception and damage; the longer the supply chain structure, the more complex and concealed the risk propagation.