Owusu-Manu, D G; Holt, G D; Edwards, D J and Badu, E (2014) Determinants of trade credit supply among the Ghanaian construction sector. Built Environment Project and Asset Management, 4(4), pp. 368-383. ISSN 2044-124X
Abstract
Purpose: Trade credit (TC) provides access to capital for construction contractors globally and is an important source of finance in both developed and developing countries. The purpose of this paper is to explore key factors underpinning construction suppliers' decisions to provide TC to Ghanaian construction firms.; Design/methodology/approach: Primary data from a structured survey of 75 construction suppliers are analysed. Principal component (factor) analysis explores complex structures among suppliers' decision-making variables.; Findings: Underlying constructs of decision criteria exist among seven key factors: financial profile of the contractor; parties' profit margins; asset portfolio and project particulars; TC quantum and repayment terms; age and experience of the contractor; contractor corporate image; and parties' cash flows.; Originality/value: This is a new decision criteria framework for suppliers and contractors, who utilise TC.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | cash flow; construction firms; developed and developing countries; Ghana; suppliers; trade credit |
| Index terms: | decision criteria, methodology, decision-making, construction contractor, construction sector, determinant, developing country, cash flow, Ghana, profit, survey, construction firm |
| Subjects: | organization, risk assessment, data collection methods, practitioner, economic analysis, research methods, financial management, development economics, Geography, decision analysis, industry analysis |
| Topics: | Business Strategy, Cost Management, Research Practice, Geographical Context, Risk Management, Roles and Professions, International Construction |
| Descriptive scope: | 4 PCTE |
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