Quantitative analysis of the smile curve - empirical analysis targeted for the Japanese food and manufacturing industries
by Hiroshi Imahashi; Keisuke Uenishi; Kiminori Gemba
International Journal of Business and Systems Research (IJBSR), Vol. 15, No. 4, 2021

Abstract: This study targeted the food and manufacturing industries in Japan. We analyse profitability using the concepts of upstream, midstream, and downstream industries and clarify the relationship between the B-to-B and B-to-C rates and operating income margin profitability. Then, we analyse the relationship between the B-to-B rate and profitability using the extended input-output table and economic census. Our results show that the food industry has a smile curve, and the profitability of midstream industry is low. For the manufacturing industry, we verified that the higher the B-to-C rate, the lower the level of profitability, and as the B-to-B rate exceeds 0.8, it is shown that profitability tends to be high in industries with a higher B-to-B rate.

Online publication date: Tue, 06-Jul-2021

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