The effect of major customers' geographical distance on enterprise technology innovation: Evidence from China

Abstract

AbstractShort‐distance major customers can capture information. Information is the key to bargaining. Therefore, short‐distance major customers undercut the price of innovation products. However, there is little research between major customers' distance and enterprise innovation. We find that short‐distance major customers are threats to enterprise innovation. IPDC and HSR weaken the relationship. Further research finds that the inhibitory effect of short‐distance major customers is more pronounced when the industry competition degree is high and enterprise market power is low. At distances of more than 1000 km, major customers are no longer threats. Distance is new to the literature about customer characteristics.