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The Frontiers of Society, Science and Technology, 2020, 2(11); doi: 10.25236/FSST.2020.021111.

Customer Concentration, Level of Research and Development, and Supplier’s Profitability Analysis Based on High-Tech Manufactory Industry

Author(s)

Guo Jingwei1, Huang Siyao2, Yin Hang3

Corresponding Author:
Guo Jingwei
Affiliation(s)

1 Shanghai Starriver Bilingual School, Shanghai, China

2 Shanghai University of International Business and Economics, Shanghai, China

3 University of California Irvine, Irvine, U.S.A.


Abstract

We use multiple regression model to empirically examine how high-tech manufactory supplier’s customer concentration and research and development affect the supplier’s profitability, and we also address the underlying mechanisms. Along with hypothesis, we justify that higher high-tech manufactory supplier’s customer concentration might lead to lower the supplier’s profitability. Higher high-tech manufactory supplier’s customer concentration might lead to higher customer’s relative bargaining power. High-tech manufactory supplier’s higher level of R&D might lead to higher the supplier’s profitability. Not along with hypothesis, higher high-tech manufactory supplier’s customer concentration is likely leading to lower the supplier’s risk and lower supplier’s operating efficiency. High-tech manufactory supplier’s higher research and development might lead to higher the supplier’s risk. High-tech manufactory suppliers’ higher research and development might lead to lower the supplier’s operating efficiency. There might be an inverted-shape association between high-tech manufactory supplier’s customer concentration and the supplier’s level of research and development.

Keywords

Customer concentration, Suppliers’ profitability, Research and development, High-tech manufactory

Cite This Paper

Guo Jingwei, Huang Siyao, Yin Hang. Customer Concentration, Level of Research and Development, and Supplier’s Profitability Analysis Based on High-Tech Manufactory Industry. The Frontiers of Society, Science and Technology (2020) Vol. 2 Issue 11: 62-77. https://doi.org/10.25236/FSST.2020.021111.

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