Organizational Resilience and Performance: An Analysis of the Relevance of Suppliers’ Trade Credit and Bank Diversification in the Spanish Construction Industry

Esteban Lafuente; Felipe Strassburger; Yancy Vaillant; Jordi Vilajosana

doi:10.5130/AJCEB.v17i4.5704

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Published: Dec 7, 2017

DOI: https://doi.org/10.5130/AJCEB.v17i4.5704

Keywords:

Trade credit, suppliers, bank credit, performance, construction industry

Esteban Lafuente

Department of Management, Universitat Politècnica de Catalunya (Barcelona Tech)

http://orcid.org/0000-0001-5889-7656

Felipe Strassburger

Department of Management, Universitat Politècnica de Catalunya (Barcelona Tech)

Yancy Vaillant

Department of Strategy and Entrepreneurship. Toulouse Business School (TBS)

Jordi Vilajosana

Department of Management, Universitat Politècnica de Catalunya (Barcelona Tech)

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.

How to Cite

Lafuente, E., Strassburger, F., Vaillant, Y., & 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), 1-19. https://doi.org/10.5130/AJCEB.v17i4.5704

Issue

Vol 17 No 4 (2017): Construction Economics and Building

Section

Articles (Peer reviewed)

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