Wang, W., Zhen, Z., Li, M. et al. (1 more author) (2025) The effects of market power discrepancy on trade credit scales: a paradoxical perspective of digitalization. Journal of Business Logistics, 46 (4). e70039. ISSN: 0735-3766
Abstract
We examine the relationship between corporate market power discrepancy (MPD) and trade credit (TC), and whether digital transformation (DT) moderates this relationship. This research adopts TC, one of the most important financing schemes in supply chain finance (SCF), to represent the SCF-based financing ability of a firm, and conducts empirical research using a sample of Chinese publicly traded firms and their suppliers and customers spanning from 2011 to 2022. We first investigate the effect of the MPD, including both suppliers' market power discrepancy (SMPD) and customers' market power discrepancy (CMPD), on the scales of focal firms' TC. We find that the SMPD is positively correlated with the TC of focal firms, while the CMPD is negatively correlated with its TC. Further, we find that DT enhances the effect of SMPD on TC scales but weakens the effect of CMPD on TC scales. This study advances understanding of MPD's effects on TC from a paradoxical perspective of digitalization, offering practitioners insights into the impact of deploying digital technologies on supply chain relationships.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2025 The Authors. Except as otherwise noted, this author-accepted version of a journal article published in Journal of Business Logistics is made available via the University of Sheffield Research Publications and Copyright Policy under the terms of the Creative Commons Attribution 4.0 International License (CC-BY 4.0), which permits unrestricted use, distribution and reproduction in any medium, provided the original work is properly cited. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/ |
Keywords: | digital transformation; market power discrepancy; supply chain finance; trade credit |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Date Deposited: | 07 Oct 2025 12:58 |
Last Modified: | 07 Oct 2025 13:03 |
Status: | Published |
Publisher: | Wiley |
Refereed: | Yes |
Identification Number: | 10.1111/jbl.70039 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:232618 |