Uncle Sam Rising: The Government’s Share of a Firm’s Customer Portfolio and Financial Performance Outcomes

Brett Josephson, Ju-Yeon Lee, Babu John-Mariadoss, Jean Lynne Johnson

Research output: Contribution to journalArticlepeer-review

Abstract

This article uses multimethod approaches to develop a conceptual foundation for and empirical evidence of the performance implications of business-to-government (B2G) relationships. In-depth interviews reveal unique characteristics that differentiateB2G exchanges from commercial exchanges (e.g., procurement mission; regulations and oversight; scale, scope, and planning horizon) and highlight the resultant cost–benefit trade-offs for firms in this environment. Empirical longitudinal analyses of secondary data show that a firm’s government customer emphasis (firm revenue dependence on B2G relationships) exerts a positive nonlinear effect on firm value but also increases firm risk (idiosyncratic and systematic). Government customer breadth and depth are two critical customer portfolio characteristics that moderate these effects. High government customer breadth creates more costs associated with an increasing government customer emphasis, mitigating the positive nonlinear effect on firm
Original languageEnglish
Pages (from-to)51-72
JournalJournal of Marketing
StatePublished - Jan 1 2019

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