Know your competitors: Customer identity disclosure by competitors and a firm's production efficiency. (2nd February 2022)

• Record Type: Journal Article
• Authors: He, Jie; Chen, Xi; Chan, Kam C.
• Is Part Of: International review of finance. Volume 22:Number 4(2022)
• Page Start: 777
• Page End: 792
• Publication Date: 2022-02-02
• Subjects: competitor customer identity disclosure -- total factor productivity; Finance -- Periodicals; Financial institutions -- Periodicals; 332.673
• DOI: 10.1111/irfi.12373
• Languages: English
• ISSNs: 1369-412X

Abstract

Abstract: When planning production, a firm must consider internal factors and factors related to their competitors as well. We examine whether the disclosure of customer identity by competitors is associated with a firm's production efficiency. Using a sample of Chinese firms, we find that a firm's total factor productivity is positively related to the disclosure, suggesting that a firm benefits from knowing the identity of its competitors' customers. The effect is more salient when a firm belongs to a competitive industry or is a market leader, suggesting a firm may be able to optimize its productivity when the information is more critical to its business.