How does supply chain transparency affect firms’ knowledge network embeddedness?

Supply chain transparency is increasingly important for complex supply chain operations and collaborations. This study examines the relationship between firms’ supply chain transparency (SCT) in their supply chain network and their knowledge network embeddedness in the knowledge network; and considers the moderating roles of two contextual factors, supply chain network density and marketization. Using supply chain information disclosure data and patent application information from 869 Chinese listed firms between 2011 and 2020, this study evidenced that firms’ SCT has a positive effect on their knowledge network embeddedness, and this relationship is positively moderated by supply chain network density, and negatively moderated by marketization. This study contributes to SCT literature by examining the role of SCT in a cross-network setting (i.e., supply chain network and knowledge network). It answers the call to investigate the role of SCT in facilitating knowledge and information sharing. It also sheds new light on the investment of information disclosure strategies that contribute to effective, trust-based interorganizational collaborations.