Based on the sample data of Chinese listed companies, this paper finds that the increase in customer concentration significantly reduces the level of enterprise employment. The research results are robust to a series of tests. Further analysis shows that the increase of financing constraints, the increase of enterprise risk and the decrease of profitability are the mechanism of customer concentration affecting enterprise employment. In addition, the negative correlation between customer concentration and enterprise employment is stronger for enterprises with small size, fierce industry competition, and increasing economic policy uncertainty.

We examine the relationship between customer concentration and capital structure adjustment speed using a sample of US listed firms from 1977 to 2020. We found that the customer-concentrated firms have a lower speed of leverage adjustment. Customer concentration affects leverage adjustment speed mainly through increased cash flow volatility and asset specificity. The negative association is more pronounced in firms with high relationship-specific investments and low switching costs for their customers. Stock market reacts to leverage deviation strongly for firms with concentrated customers. Our findings highlight the vital role of customers as key stakeholders in capital structure decisions.

This study investigates how digital transformation can affect ESG performance within China’s unique environment. Using data from Chinese A-share listed firms from 2009 to 2022, this paper reveals digital transformation can positively affect ESG performance. Within the mechanism, customer concentration plays a medicating effect and organizational structure stability plays a positive moderating effect. Besides, the effect of digital transformation on ESG performance is more pronounced in Chinese western enterprises, non-heavy polluting industries and large-size enterprises. To our knowledge, this paper is one of the pioneering studies that examines the relationship between digital transformation and ESG performance from the perspective of supply chain management.