Research On The Influence Of Business Partner Concentration On Internal Control Quality

Over the past 40 years of Reform and Opening,with the deepening of economic globalization and the continuous advancement of the strategy of "Made in China 2025",the competition among enterprises has long since departed from the state of being alone.The business partner alliance has become the new normal of current market cooperation and competition.In particular,large-scale manufacturing enterprises must establish stable cooperative relationships with supply chain upstream suppliers and supply chain downstream customers in order to survive in a complex and ever-changing competitive environment and obtain maximum competitive advantage.This can integrate resources,optimize configuration,and achieve a win-win situation.Academic circles have studied the influence of customer concentration and supplier concentration on business development in many directions.However,few scholars have investigated the impact of customer concentration and supplier concentration on the internal control quality.Therefore,this paper takes manufacturing enterprises as the research object and studies the influence of business partner concentration on internal control quality from two dimensions: customer concentration and supplier concentration.High-quality internal control can standardize enterprises on the track of achieving strategic objectives and creating value for the company,and minimize the risk of crisis and uncertainty in the company's operations,enabling companies to respond to changing competitive environments promptly.Realize "Build to Last".The supplier and customer of the enterprise are related to the quality and sales of the enterprise products,and the degree of concentration will inevitably have an impact on the quality of the internal control of the enterprise.So,what is the impact of a centralized customer or supplier strategy on the internal control quality? The customer or supplier concentration strategy will play the role of "destroyer" and break the original internal control system of the enterprise,resulting in a decline in the quality of internal control.Or will it play the role of "supervisor",urge enterprises to improve the internal control system,strengthen enforcement,and promote the improvement of internal control quality? How does the macroeconomic environment affect the relationship between customer or supplier concentration and internal control quality? To this end,this paper takes A-share Manufacturing Listed Companies in Shanghai and Shenzhen Stock Exchanges from 2008 to 2017 as research samples and studies the impact of business partner concentration on internal control quality from two perspectives of customer concentration and supplier concentration.The adjustment effect of economic prosperity on the relationship between the two is analyzed.The results show that:(1)There is a significant negative correlation between customer concentration and supplier concentration and internal control quality,that is,customer concentration and supplier concentration increase may weaken the role of internal control,resulting in the internal control quality is reduced;(2)The degree of economic prosperity aggravates the adverse effect of customer concentration and supplier concentration on the internal control quality.The possible innovations in this paper are mainly to use the combination of theoretical research and empirical analysis to explore the impact of customer concentration and supplier concentration on the internal control quality of enterprises and analyze the adjustment role of economic prosperity in the relationship between the two.On the one hand,this paper studies the internal control quality from the perspective of customers and suppliers,breaks through the research scope of the factors affecting the internal control quality,and provides a new direction for designing the internal control system under the framework of business partners,improving the internal control system and improving the internal control quality.On the other hand,this paper introduces the factors of the economic environment of the enterprise and studies the changes in the influence of customer concentration and supplier concentration on the internal control quality under different economic conditions,providing ideas for enterprises to improve the internal control quality in a complex economic environment.