The Impact of Customer Concentration for Asset Utilization Efficiency in China's Manufacturing Sector

Abstract

In this paper, empirical researches are conducted based on data collected manually of top 5 customers that disclosed by listed companies in manufacturing industry from 2009-2014, to explore effects from customer concentration on assets utilization efficiency in enterprises and the further corrective impact from ownership and size of enterprises on Customer Concentration-Assets Utilization Efficiency relation. The result of those empirical researches show us that in manufacturing industry, there is a notable negative correlation between customer concentration and asset utilization efficiency and it is more significant when enterprises is private owned and is small-scaled. Findings in this paper give a new direction to the research of customer relationship management and provide a salutary lesson for asset management of enterprises.

Keywords: Customer concentration, Asset utilization efficiency, Supply chain