Firm Sustainable Growth during the COVID-19 Pandemic: The Role of Customer Concentration

ABSTRACT

Due to the spread of coronavirus disease 2019 (COVID-19), business environmental uncertainty, a restricted flow of personnel and materials, and changes in consumer demand have impacted business operations and financial performance. This study investigates the relationship between COVID-19, customer concentration, and sustainable growth based on data from listed companies in China. The results reveal that COVID-19 has had a negative impact on sustainable growth, but customer concentration can mitigate this negative association. By emphasizing the moderating effect of customer concentration on the relationship between COVID-19 and sustainable growth, this study provides new insights for firms who are seeking to mitigate the negative shocks of COVID-19 and promote sustainable development.

KEYWORDS:

• COVID-19
• customer concentration
• sustainable growth
• supply chain relationship
• customer relationship management
• emerging markets

JEL CLASSIFICATION:

• D22
• G32
• M10

Declaration of Interest

The authors declare that the research was conducted in the absence of any commercial or financial relationships that could be construed as a potential conflict of interest.

Additional information

Funding

This work was supported by the National Social Science Fund of China [No. 18BJY236]; and the Social science planning and research project of Shandong Province of China [No. 18CJJJ11].