Lafuente, E; Strassburger, F; Vaillant, Y and Vilajosana, J (2017) Organizational resilience and performance: An analysis of the relevance of suppliers' trade credit and bank diversification in the Spanish construction industry. Construction Economics and Building, 17(4), pp. 1-19. ISSN 2204-9029
Abstract
The objective of this study is to determine the effect of relevant variables related to strategic sources of financial resources—in our case, suppliers' trade credit and use of financial institutions—over performance among Spanish construction firms. To test the proposed hypotheses, we employ panel-data techniques on a large dataset that includes information for 3590 Spanish small (1723), medium-sized (1616) and large (251) construction businesses during 2004-2011. The results of the longitudinal analysis reveal that trade credit granted by suppliers constitute a relevant source of liquidity and financial resources that positively impacts economic performance. During the period of economic downturn that affected Spain after 2008, those construction firms that benefited from longer average payment periods from their suppliers reported superior performance levels. Additionally, we find that bank diversification is conducive to performance but only during the crisis period: performance is significantly higher in businesses that work with a greater number of financial institutions.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | trade credit; bank credit; construction industry; performance; suppliers |
| Index terms: | organizational resilience, construction firm, longitudinal analysis, Spain, dataset, construction industry, liquidity, diversification |
| Subjects: | economic analysis, business, market analysis, Geography, data analysis and analytics, data management, organization, industry analysis |
| Topics: | Business Strategy, Research Practice, Organizational Design, Digital Applications, Geographical Context |
| Descriptive scope: | 4 PCTA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here