 The impact of trade credit on information sharing in a supply chainKe Fu, Ce Wang and Jiayan Xu Omega, 2022, vol. 110, issue C Abstract: Trade credit is a financing tool commonly practiced in supply chains. While a substantial literature has examined various aspects of trade credit, its impact on information sharing in supply chains has not been well studied. We address this research gap by considering a decentralized supply chain where a capital-constrained retailer with superior demand information orders products from a manufacturer. The manufacturer may offer trade credit, whereas the retailer may disclose her private demand information to the manufacturer. We focus on how the manufacturer’s offering of trade credit affects the retailer’s information sharing decision and supply chain performance. Our findings show that, without trade credit, the retailer shares information when her available capital is tight or when both the information accuracy and demand volatility are high. With trade credit, the retailer shares information when the demand volatility is high, and may or may not do so otherwise. Furthermore, we identify conditions under which the offering of trade credit benefits both, exactly one, or none of the supply chain members. Keywords: Supply chain management; Trade credit; Information sharing; Game theory (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jomega:v:110:y:2022:i:c:s0305048322000421 Ordering information: This journal article can be ordered from DOI: 10.1016/j.omega.2022.102633 Access Statistics for this article Omega is currently edited by B. Lev More articles in Omega from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.