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

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.