Customer Volatility, Social Responsibility and Business Risk

Under the goal of "innovation-driven", how to improve the overall competitiveness and reduce the risk is a major problem faced by China's manufacturing industry over the recent years. This paper takes China's A-share manufacturing industry as a sample, sourcing data between 2012 and 2020, to explore the relationship between customer volatility and business risk. The results show that both positive and negative customer volatility will increase the business risk of enterprises, but the impact is not significant when the customer positive volatility is small. Moreover, enterprises with good social responsibility performance can help to relieve the negative impact of customer fluctuations on business risks. Furthermore, the customer volatility of non-state-owned enterprises and technology-intensive enterprises has a greater impact on business risk.