Proceedings of the 5th International Conference on Accounting, Auditing, and Taxation (ICAAT 2016)

Customer Concentration and Profitability in Private Healthcare Companies

Authors
Riikka Holopainen, Mervi Niskanen, Sari Rissanen
Corresponding Author
Riikka Holopainen
Available Online December 2016.
DOI
https://doi.org/10.2991/icaat-16.2016.14How to use a DOI?
Keywords
Customer concentration, profitability, small and medium-sized enterprise (SME), healthcare business
Abstract
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.

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Proceedings
5th International Conference on Accounting, Auditing, and Taxation (ICAAT 2016)
Part of series
Advances in Economics, Business and Management Research
Publication Date
December 2016
ISBN
978-94-6252-261-9
ISSN
2352-5428
DOI
https://doi.org/10.2991/icaat-16.2016.14How to use a DOI?
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
BT  - 5th International Conference on Accounting, Auditing, and Taxation (ICAAT 2016)
PB  - Atlantis Press
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  -