Can the "Little Giant"label enhance firms' supply chain positions?

Strong supply chain relationships are crucial for stabilizing stock prices and enhancing profitability. However, existing research on the impact of national-level innovation policies on firms' supply chain relationships remains limited. Based on data from Chinese listed firms between 2015 and 2022, the paper employs a staggered difference-in-differences approach to analyze how the "Specialized, Refined, Distinctive, and Innovative (SRDI) Little Giant"label affects firms' influence within the supply chain. Our results indicate that, on average, small and medium-sized enterprises designated as SRDI Little Giant experience reductions in customer concentration and supplier concentration by 1.38% and 1.78%, respectively, compared to other firms. Furthermore, the label strengthens SMEs' supply chain position by improving access to long-term financing.