Industrial embeddedness and the resilience of supply chain: From the perspective of supply-demand adaptability

This study examines the impact of industrial embeddedness on supply chain resilience from the perspective of supply-demand adaptability, using data from A-share listed companies and their customers over the period 2007-2023. The results reveal a significant inverted U-shaped relationship, which remains robust across multiple tests. Mechanism analysis identifies two key pathways: relationship structure reinforcement and cost structure optimization. Heterogeneity analysis shows that demand-side industrial embeddedness has a more pronounced inverted U-shaped effect than its supply-side counterpart. Stratified analysis further indicates that overall industrial embeddedness significantly affects resilience in the supply-demand matching and stability layers; supply-side embeddedness influences the upgrading layer; and demand-side embeddedness affects both the matching and upgrading layers. This study contributes to the literature on supply chain resilience and offers policy insights for strengthening China’s supply chains through industrial embeddedness.