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Article summary:
1. This article examines the impact of customer-base concentration on firm profitability when contracting with major government and corporate customers.
2. The study finds that firms contracting with major government customers experience higher profitability due to lower demand uncertainty, while firms contracting with major corporate customers experience lower profitability due to higher demand uncertainty.
3. The results suggest that major government customers are unique and important in the composition of customer base, and they have a significantly different impact on firm outcomes than major corporate customers.
Article analysis:
The article is generally reliable and trustworthy, as it provides evidence for its claims through empirical research. The authors provide a detailed explanation of their methodology and results, which allows readers to evaluate the trustworthiness of the findings. Additionally, the authors cite relevant literature to support their arguments and provide an in-depth analysis of their data.
However, there are some potential biases in the article that should be noted. First, the authors focus solely on US firms contracting with US government or corporate customers, which may limit the generalizability of their findings to other countries or contexts. Second, the authors do not explore any counterarguments or alternative explanations for their findings; this could lead readers to draw conclusions without considering all possible perspectives on the issue. Finally, although the authors cite relevant literature throughout their paper, they do not discuss any potential risks associated with customer-base concentration or how these risks might affect firm profitability differently depending on whether they contract with a government or corporate customer.
In conclusion, this article is generally reliable and trustworthy but has some potential biases that should be taken into consideration when evaluating its findings.