Jim Kroes, a professor in the Department of Supply Chain Management Professor, has coauthored a paper, “Examining the relationship between trade credit payment terms and manufacturing firm performance: The moderating effect of market share,” which delves into the intricate connections between how manufacturers offer credit to their customers and their overall financial success.
This research investigates how the length of trade credit payment terms – the time allowed for customers to pay for goods – influences the performance of manufacturing firms. Importantly, the study also explores how a company’s market share might amplify or dampen this relationship. Understanding these dynamics can provide valuable insights for businesses as they strategically manage their credit policies to optimize performance within their specific market context.