Uncertainty Shock,Government Procurement and the Resilience of Enterprise Development
Amid unprecedented global transformations,including geopolitical conflicts and public health crises,uncertainties abound,posing significant challenges to global economic development.In such highly complex and uncertain market environments,the operational governance of micro-enterprises is susceptible to internal and external uncertainties,leading to increased survival pressures.In the face of various sudden shocks,resilience embodies a company's ability to self-react and adapt to risks and shocks,thereby reducing vulnerability and risk under uncertainty.Resilience is crucial for sustaining high-value growth amidst market uncertainties.Moreover,as the macroeconomy comprises economic activities of various micro units,the resilience of enterprises,as the backbone of China's economic development,directly influences the development trends and resilience of the macroeconomic system,thus impacting the realization of China's modernization process.Therefore,in this new era and journey,delving into enhancing enterprises'resilience to various uncertainty challenges is paramount.Procurement is a crucial mechanism for governments to establish economic ties with enterprises,facilitating effective collaboration between capable governments and efficient markets.Besides providing direct economic support to enterprises,can government procurement generate positive economic impacts in situations where enterprises face external uncertainty shocks?This is the main issue this study seeks to address.Based on data crawled from the China Government Procurement Contracts website,this study adopts the participation of enterprises in government procurement as the research perspective.Through empirical research based on quarterly data of A-share listed firms from 2020 to 2021 and data from China Government Procurement Contract announcements,it explores whether and how government procurement can assist firms in coping with external uncertainty shocks.The empirical results indicate that during uncertainty shocks caused by global public health events,government procurement contributes to enhancing the resilience of firms,especially private firms.The mechanism tests reveal that,first,the government can endorse enterprises through procurement orders,helping alleviate information asymmetry issues and low trust from funding providers,thereby enhancing enterprise resilience during the financing process.Second,government procurement can stabilize market expectations for enterprise development and prospects,further boosting enterprise resilience.Cross-sectional tests reveal that for firms with poor profitability and labor-intensive operations as well as those located in economically underdeveloped regions,the positive impact of government procurement during uncertainty shocks is more pronounced.Additionally,compared with non-local procurement,local government procurement has a more significant effect on resilience enhancement.Lastly,this study finds that firms with government procurement orders can achieve value recovery more rapidly after uncertainty shocks subside.The contributions of this study are threefold.First,it expands the academic understanding of the economic value of government procurement by examining its stabilizing role for enterprises facing uncertainty shocks,providing a beneficial supplement to existing research on government procurement.Second,it enriches the literature on factors influencing enterprise resilience.While existing literature mostly explores factors affecting resilience from the perspective of enterprise conditions,this study pioneers in demonstrating that positive interactions between government and enterprises help enhance enterprise resilience,offering a fresh perspective on understanding resilience issues.Third,it holds significant reference value for Chinese government departments in formulating supportive policies for private economic development in the historical new journey.Given the continuous emphasis on the development of the private economy by the Central Committee,with special attention in the 20th Party Congress report on optimizing the development environment for private enterprises and promoting their growth,the findings of this study provide valuable insights for government departments at all levels to contemplate effective policies that support the combination of capable government and efficient markets in the historical new journey.
NETL
NSTL
万方数据
