하도급기업의 거래집중도가 수익성에 미치는 영향에 관한 연구

Abstract

A Study on the Effect of Transaction Concentration on the Supplier Profitability

Jeong Ju Hong

Department of Economics, The Graduate School,

Pukyong National University

Abstract

This study analyzes empirically the effects of suppliers’ transaction concentration on the rate of return and the volatility of the rate of return, focusing on companies supplying parts to Korean representative industries such as automotive, electronic, machinery and shipbuilding industries. The major results of the empirical analysis are summarized as follows. First, in the results of analyzing the effects of suppliers’ transaction concentration on the rate of return, the relation between transaction concentration and the rate of return was U-shaped in the automotive industry and the electronic industry. This result suggests that the rate of return is raised by the customer intimacy strategy in companies whose transaction concentration exceeds the minimum rate of return, and by the customer diversification strategy in companies whose transaction concentration is below the minimum rate of return. Second, in the results of analyzing the effects of transaction concentration on the volatility of the rate of return, the relation between transaction concentration and the volatility of the rate of return was upside-down U-shaped in the electronic industry, but the upside-down U-shaped relation was not proved in the automotive, machinery and shipbuilding industries. This result suggests that suppliers’ volatility of the rate of return is stabilized by the customer diversification strategy and the customer intimacy strategy in the electronic industry in which changes in technologies and markets are rapid, but in other industries transaction concentration has an effect on profitability but not significantly on management stability. These results demonstrate empirically that, along with the customer diversification strategy, the customer intimacy strategy is an effective customer scope strategy for suppliers to enhance their profitability and stabilize their management. This study has limitations as follows. First, this study assumed that the customer intimacy strategy and the customer diversification strategy are not opposite but supplementary to each other and their applicable areas are different. However, we could not clarify in which areas the assumption is the case. This question may be answered through more specific surveys on the technological characteristics of suppliers. Second, 10 years’ financial data were available for this study but only 1 year’s data were obtained on transaction concentration. For this reason, panel analysis could not be used, and supplementary research is required with additional data.

Key words: transaction concentration, customer intimacy strategy, customer diversification strategy, suppliers, the rate of return, volatility of the rate of return