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Firm-customer collaborative innovation and customer stability: evidence from China

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  • Gu, Bin

Abstract

This study investigates the impact of collaborative innovation between firms and customers on the firm-customer relationship stability. By enhancing firms’ product competitiveness and sending positive signals to customers, such collaboration helps attract and retain stable customers, ultimately strengthening customer stability. Using the difference-in-differences (DID) method, I find supporting evidence. Further analysis reveals that the effect is more pronounced in highly competitive industries, superior information environments and non-state-owned enterprises, consistent with competitive advantage and signaling effect mechanisms. My findings contribute to the literature on supply chain collaborative innovation and offer implications for fostering sustainable, high-quality supply chain development in emerging markets.

Suggested Citation

  • Gu, Bin, 2025. "Firm-customer collaborative innovation and customer stability: evidence from China," Finance Research Letters, Elsevier, vol. 85(PD).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pd:s1544612325014242
    DOI: 10.1016/j.frl.2025.108169
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    References listed on IDEAS

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