We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Policy Uncertainty and Customer Concentration.
- Authors
Leung, Woon Sau; Sun, Jiong
- Abstract
Using data involving customer–supplier relationships and a large sample of US publicly listed firms, our study documents a negative and statistically significant relationship between economic policy uncertainty and firms' customer‐base concentration. The negative relation is predominant in firms with higher inventory efficiency and those operating in competitive, high‐R&D, and nondurable industries. Customer‐base diversification is further shown to enhance firm performance during periods of increasing policy uncertainty, but not when policy uncertainty decreases. Overall, our evidence suggests that firms respond to increasing policy uncertainty by diversifying their customer base and such behavior contributes positively to firm performance.
- Subjects
UNCERTAINTY; ORGANIZATIONAL performance; DIVERSIFICATION in industry; ECONOMIC policy
- Publication
Production & Operations Management, 2021, Vol 30, Issue 5, p1517
- ISSN
1059-1478
- Publication type
Article
- DOI
10.1111/poms.13335