Title: Quantitative analysis of the smile curve - empirical analysis targeted for the Japanese food and manufacturing industries

Authors: Hiroshi Imahashi; Keisuke Uenishi; Kiminori Gemba

Addresses: Graduate School of Engineering, Osaka University, 2-1 Yamadaoka, Suita-shi, Osaka 565-0871, Japan ' Graduate School of Engineering, Osaka University, 2-1 Yamadaoka, Suita-shi, Osaka 565-0871, Japan ' Business School of Innovation Management, Hosei University, 3-3-9 Kudankita, Chiyoda-ku, Tokyo 102-0073, Japan

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.

Keywords: smile curve; food industry; manufacturing industry; B-to-B rate; B-to-C rate; operating income margin; input-output table; upstream industry; midstream industry; downstream industry.

DOI: 10.1504/IJBSR.2021.116041

International Journal of Business and Systems Research, 2021 Vol.15 No.4, pp.426 - 447

Received: 27 Aug 2019
Accepted: 25 Nov 2019
Published online: 06 Jul 2021 *

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