Major government customers and organizational resilience during the COVID-19 pandemic: evidence from China

The COVID-19 pandemic disrupted global supply chains and threatened firm survival. By analysing Chinese listed private firms from 2017 to 2022, we examine the impact of government customers on organizational resilience during this crisis and find that firms with major government customers demonstrate higher resilience than those without. Moreover, government customers support private suppliers by providing additional trade credit and reducing demand uncertainty. This support substitutes for specific internal resources in assisting private suppliers during the pandemic. Finally, the effect is amplified when government customers are affiliated with higher-level governments.