Please use this identifier to cite or link to this item: https://dspace.univ-ouargla.dz/jspui/handle/123456789/6797
Title: Crafty Credit? The Strategic Use of Trade Credit
Authors: Cherif Guermat
Rebecca Boden
salima Yassia
Keywords: Crafty Credit
The Strategic
Issue Date: Jun-2012
Series/Report no.: numéro 1 2012;
Abstract: This paper explores the contribution that trade credit can and does make as a competitive device that can add value to companies when used strategically. By reference to the literature, we argue that trade credit is not merely a short-term collection issue, and that, used proactively, it can be a source of competitive advantage. We then develop an empirical model to test the relationship between trade credit and sales/profitability to determine whether, and the extent to which, trade credit constitutes a strategic tool. We find, inter alia, evidence that, when used strategically to enhance competitive advantage, firms have a discernible optimal level of trade credit. Despite data limitations, we conclude that our model demonstrates a viable methodology that could be applied usefully to an extended data set.
Description: Algerian business performance review
URI: http://dspace.univ-ouargla.dz/jspui/handle/123456789/6797
ISSN: 1938-2170
Appears in Collections:numéro 01 2012 V1 n1

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