Digital Innovation and Trade Credit Provision

Guoquan Xu, Xiaokun Duan and Xiao Li ()
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Guoquan Xu: Beijing Foreign Studies University, International Business School
Xiaokun Duan: Beijing Foreign Studies University, International Business School
Xiao Li: Beijing Foreign Studies University, International Business School

A chapter in Proceedings of the 2024 6th Management Science Informatization and Economic Innovation Development Conference (MSIEID 2024), 2025, pp 767-777 from Springer

Abstract: Abstract This paper investigates the impact of firms’ digital innovation on trade credit with a sample of China’s listed firms from 2010 to 2022. We utilize a novel identification strategy, analyzing patent texts and refining measurement techniques to capture previously overlooked yet significant keywords of digital transformations. The empirical results show that enterprise digital innovation promotes trade credit by reducing bullwhip effect and improving total factor productivity. The relationship is more pronounced among firms that are non-state-owned enterprises, face fierce competition, and have lower supply chain concentration. Our study underscores the positive role of digital innovation in trade credit provision, shedding light on firms’ digital transformation and financing strategies.

Keywords: Digital Innovation; Supply Chain Volatility; Trade Credit (search for similar items in EconPapers)
Date: 2025
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DOI: 10.2991/978-94-6463-676-5_74

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