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Customer‐based Concentration and Firm Innovation
Author(s) -
Shen Huayu,
Xia Ning,
Zhang Jun
Publication year - 2018
Publication title -
asia‐pacific journal of financial studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.375
H-Index - 15
eISSN - 2041-6156
pISSN - 2041-9945
DOI - 10.1111/ajfs.12210
Subject(s) - business , industrial organization , sample (material) , bargaining power , supply chain , cash , business administration , marketing , microeconomics , economics , finance , chemistry , chromatography
Abstract Based on a sample of listed companies in Shanghai and Shenzhen, China from 2007 to 2015, this paper discusses the relationship between customer concentration and corporate innovation. The results show that this relationship is nonlinear and U‐shaped. In addition, this paper finds that when the bargaining power of large customers is weak and the level of supply chain integration is high, the U‐shaped relationship becomes more significant. Additional analyses show that the U‐shaped relationship between customer concentration and corporate innovation is more significant for non‐state‐owned enterprises and those with lower levels of cash holding.