Who pays buyers for not disclosing supplier lists? Unlocking the relationship between supply chain transparency and trade credit

Yibo Wang, Bai Liu, Hing Kai Chan and Tiantian Zhang

Journal of Business Research, 2023, vol. 155, issue PB

Abstract: Although previous studies have explored the financial benefits of improved supply chain transparency, in practice, firms extensively conceal their information. The existing literature pays very limited attention to how a firm’s supply chain transparency affects the financial support from suppliers. Grounded on social exchange theory, this study explores the reciprocal relationship between a firm’s supply chain transparency and its suppliers’ provision of trade credit in the context of supplier list disclosures. Based on tests of Chinese listed firms, we find that a firm with lower supply chain transparency can enjoy more trade credit. We further observe that this negative relationship is attenuated by a firm’s market share but strengthened by a firm’s corporate social responsibility (CSR) performance. These findings contribute to an improved understanding of the combined effects of reciprocity and bargaining power on trade credit. Our results also provide a new rationale for a firm to conceal supplier identities.

Keywords: Supply chain transparency; Supplier list disclosure; Trade credit; Market share; CSR performance; Social exchange relationship (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:155:y:2023:i:pb:s0148296322008694

DOI: 10.1016/j.jbusres.2022.113404

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