We find that firms that are suppliers of superstar firms (star suppliers) have higher top line (sales) and bottom line (profitability) compared with otherwise similar propensity-score matched supplier firms. The findings are robust to an instrumental variable estimation. We document that the superstar effect is on top of the benefits associated with a large, non-superstar firm. Moreover, the percentage of star suppliers' sales attributed to superstar firms is not associated with star suppliers’ profitability or sales. This suggests that merely connecting with superstar firms benefits star suppliers. The evidence is consistent with a certification channel through which the connection with superstar firms enhances the image of star suppliers to stakeholders. Indeed, we find that superstar connections are more valuable to small or young star suppliers when star suppliers have fewer unique products. These are consistent with the predictions of the certification channel. This paper contributes to the nascent literature on the role of superstar firms in the economy by documenting the impact of superstar firms along the supply chain.
06月28日
2024
07月01日
2024
注册截止日期