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Acquaintance means booster? Why stable customers matter for firm productivity

Year: 2025

Type: article

Abstract: Amid sluggish global growth and rising uncertainties, supply chain stability is vital for sustaining economic production. Although studies examine the impacts of supply chain relationships on firm performance, their effect on total factor productivity (TFP) remains unexplored. Using data from 1559 A-share listed companies in China (2008–2022), this study examines customer stability’s impact on TFP and finds that customer stability enhances TFP by reducing Type I agency costs and improving firm reputation. It also generates significant spillover effects, increasing customer TFP through supply chain finance. This effect is more pronounced for firms in high-tech industries and regions with higher marketization and social trust. These findings offer new insights into enhancing firms’ efficiency through effective supply chain relationship management.

Source: China Journal of Accounting Research

DOI: 10.1016/j.cjar.2025.100435

Authors: Yunjiang Geng, Yuelong Wang, Shuaijun Wu

Institution: Dongbei University of Finance and Economics

Language: English

Topic: Quality and Supply Management

Subfield: Management Information Systems

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: gold

Estimated APC paid: $1,800