<p>Supply chain concentration is one of the nuclear factors determining operational efficiency and outcomes of enterprises, yet its antecedents are inadequately investigated. Supply chain concentration is not an inherent characteristic of enterprises but is influenced by many internal and external factors. This paper aims to explore how managerial ability can affect supply chain concentration. Based on a set of panel data collected from Chinese listed enterprises, we empirically examine the effect of managerial ability on supply chain concentration, including both customer and supplier concentration. Empirical results suggest that managerial ability positively affects supply chain concentration, through reducing the corporate’s agency costs and information asymmetry. This paper enhances our understanding of the critical role of managerial ability in shaping the firm’s supply chain management preferences.</p>