Customer Concentration, Cost Structure, and Performance

Chang, Hsihui; Hall, Curtis M.; Paz, Michael T.

doi:10.2139/ssrn.2482777

Cited by 10 publications

(6 citation statements)

References 18 publications

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“…Firstly, this paper extends the limited studies on relationship-specific investment, supply chain management, and hold-up problems [1,2,[36][37][38]. This result is consistent with Chang et al [39], who argue that suppliers with high customer concentration are more likely to pursue mutual dependence and cooperation with their customers. Secondly, the paper focused on and analyzed how customer concentration affected enterprise sustainable innovations and relevant effects from the perspective of customer concentration.…”

Section: Introductionsupporting

confidence: 88%

Customer Concentration, Economic Policy Uncertainty and Enterprise Sustainable Innovation

et al. 2020

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Few studies have addressed how customer concentration affects the decision of a firm’s research and development (R&D) strategies and then innovation outcome. Using a sample of China’s listed companies for the period from 2009 to 2017, this study investigates the relationship between customer concentration and enterprise sustainable innovations, as well as how such the relationship changes with economic policy uncertainty. The findings imply that there is a significant inverted-U-shaped relationship between customer concentration and enterprise sustainable innovations. Under a high level of economic policy uncertainty, the advantage of the customer relationship is maximized. In this context, raising customer concentration significantly promotes enterprise sustainable innovations. Customer concentration affects innovations differently as the equity properties, and locations of enterprises vary under different levels of economic policy uncertainty. Thus, the interval of customer concentration conducive to enterprise innovations differs. The results are robust to econometric techniques that control for endogeneity. Overall, our findings suggest that enterprises build and adjust the customer relationship and improve the driving mechanism for sustainable innovations.

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Section: Introductionsupporting

confidence: 88%

Customer Concentration, Economic Policy Uncertainty and Enterprise Sustainable Innovation

et al. 2020

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“…Second, the risk dynamics of financial institution to be more specific are completely different then manufacturing firms (Maiga et al, 2015). Third, the accounting, reporting and regulatory framework of these firms are also different (Chang, Hall, & Paz, 2015;Tang, 2016). Further, we also excluded all those firms whose data were not reported for sample period.…”

Section: Sample and Data Sourcementioning

confidence: 99%

Reassessing the Impact of Risk Management Capabilities on Firm Value: A Stakeholders Perspective

Khan

Bhutto³

2020

SIJMB

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Despite the pivotal role of risk management very limited research is carry out on the issue of firm’s risk management capability and value creation. This study aims to analyze the impact of firms risk management capabilities on firm performance and cost. Using panel data technique a sample of 301 non financial firms was analyzed for the time period on five years starting from 2011 to 2015. We assert that effective risk capabilities have positive impact on all stakeholders. The effective risk management capabilities guarantee more resilience to exogenous and endogenous risks. Our findings will have a significant impact on existing literature, by extending the existing knowledge of firm’s risk management capabilities into the domain of diverse stakeholders and resources adjustment.

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“…The officially disclosed ratio of sales to top five customers to total sales is used to measure customer concentration. Such measurement is also widely used in prior studies (Chang et al, 2017;Dhaliwal et al, 2016;Huang et al, 2016). The ratio is calculated as…”

Section: Variable Measurementsmentioning

confidence: 99%

“…Customers are crucial external stakeholders of a firm, and play a significant role in the firm's operational decisions and profitability (Shen et al, 2018;Song & Wang, 2019). Over the past decade, there has emerged with an ever-increasing tendency of relying on several major customers, such that customer concentration has continued to be raised in firms world widely (Chang et al, 2017). Correspondingly, exploring the consequences of customer concentration becomes increasingly significant and the related issues have also acquired abundant research attentions.…”

Section: Introductionmentioning

confidence: 99%

“…Correspondingly, exploring the consequences of customer concentration becomes increasingly significant and the related issues have also acquired abundant research attentions. For instance, current literatures have indicated that customer concentration has significant effects on firms' strategic activities such as cash holdings (Itzkowitz, 2013) and cost structure (Chang et al, 2017).…”

Section: Introductionmentioning

confidence: 99%

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Customer Concentration and Exploratory Innovation: The Mediating Effect of Perceived Performance-Reducing Threats

Zhao

Wang

Wan

et al. 2021

Journal of Business Economics and Management

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A great deal of research attention has been devoted to studying the effects of customer concentration on firm strategic acts. Scholars have also investigated the relationship between customer concentration and firm innovation, but concluded inconsistent findings of such relationship. Furthermore, the underlying mechanism remains unclear. To address these concerns, this study decouples exploratory innovation from firm innovation and introduce performance-reducing threats perceived by the executives as the mediator. Based on the observations of China high-tech listed firms from 2011 to 2018, empirical results show that customer concentration has a U-shaped relationship with exploratory innovation, via the mediating effect of performance-reducing threats perceived by the executives.

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Customer Concentration, Cost Structure, and Performance

Cited by 10 publications

References 18 publications

Customer Concentration, Economic Policy Uncertainty and Enterprise Sustainable Innovation

Customer Concentration, Economic Policy Uncertainty and Enterprise Sustainable Innovation

Reassessing the Impact of Risk Management Capabilities on Firm Value: A Stakeholders Perspective

Customer Concentration and Exploratory Innovation: The Mediating Effect of Perceived Performance-Reducing Threats

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