Customer Concentration and Profitability in Private Healthcare Companies
Riikka Holopainen, Mervi Niskanen, Sari Rissanen
Available Online December 2016.
- https://doi.org/10.2991/icaat-16.2016.14How to use a DOI?
- Customer concentration, profitability, small and medium-sized enterprise (SME), healthcare business
- Previous studies suggest that the customer size and range have implications for the company's performance. In this paper, we investigate the impact of customer concentration on a firm's performance in the framework of healthcare companies. The base of this paper is the questionnaire data of the private Finnish health care companies. We shed light on one corner of diverse and complex combination of the profitability process in the small companies. Thus, we address that the customer, beside other factors, has an influence on a firm's performance. Especially, in small health care companies as most of this research companies are, one or few big customers is a common form of customer base. We found that the customer concentration of the company positively directs the company's performance. Furthermore, some of the contextual factors such as desire to grow contributed to the company's performance too.
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
TY - CONF AU - Riikka Holopainen AU - Mervi Niskanen AU - Sari Rissanen PY - 2016/12 DA - 2016/12 TI - Customer Concentration and Profitability in Private Healthcare Companies PB - Atlantis Press SP - 130 EP - 138 SN - 2352-5428 UR - https://doi.org/10.2991/icaat-16.2016.14 DO - https://doi.org/10.2991/icaat-16.2016.14 ID - Holopainen2016/12 ER -