The impact of servitization on trade credit in manufacturing firms: a signaling theory perspective
International Journal of Operations & Production Management
ISSN: 0144-3577
Article publication date: 17 November 2022
Issue publication date: 7 February 2023
Abstract
Purpose
The aim of this study is to empirically test the link between servitization and trade credit in manufacturing firms as well as the boundary conditions of this link.
Design/methodology/approach
Using a unique dataset of 4,974 observations covering 838 manufacturing firms publicly listed in the United States during 1990–2020, this study examines the impact of servitization on trade credit and the moderating impacts of financial slack and service relatedness based on fixed-effect regression models.
Findings
The authors find that servitization shows a U-shaped relationship with trade credit. Besides, financial slack negatively moderates this U-shaped relationship whereas service relatedness has no significant impact on this relationship.
Originality/value
This paper is the first to empirically verify the influence of servitization on trade credit in manufacturing firms based on longitudinal secondary data and signaling theory. The research findings can provide several important theoretical and managerial implications for scholars and practitioners in operations management.
Keywords
Acknowledgements
This work was supported by the National Natural Science Foundation of China [grant numbers 72102234, 72271247, 72202112, 71901225 and 71991460] and the Natural Science Foundation of Hunan Province [grant numbers 2021JJ40800 and 2020JJ5778].
Citation
Wang, W., Chen, S., Shao, J., Chu, J. and Yuan, Z. (2023), "The impact of servitization on trade credit in manufacturing firms: a signaling theory perspective", International Journal of Operations & Production Management, Vol. 43 No. 2, pp. 373-398. https://doi.org/10.1108/IJOPM-02-2022-0100
Publisher
:Emerald Publishing Limited
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