The impact of corporate social responsibility on trade credit: Evidence from Chinese small and medium-sized manufacturing enterprises

Yongyi Shou, Jinan Shao, Weijiao Wang, Kee hung Lai

Research output: Journal article publicationJournal articleAcademic researchpeer-review

6 Citations (Scopus)

Abstract

Corporate social responsibility (CSR) has become increasingly important for manufacturers to satisfy the escalating societal expectations for environmentally and socially responsible operations. However, the extant research on CSR has mainly focused on large manufacturers with less attention for small and medium-sized manufacturing enterprises (SMMEs). Drawing upon signaling theory, this study investigates the relationship between CSR performance and trade credit of Chinese SMMEs. Using a panel dataset of 1020 Chinese SMMEs between 2010 and 2017, we find that CSR performance has a U-shaped relationship with trade credit. We further observe that financial slack and firm size negatively moderate this curvilinear relationship. This study adds knowledge to the CSR literature in production and operations management by providing insights into the non-linear relationship between CSR performance and trade credit in the Chinese SMME context.

Original languageEnglish
Article number107809
JournalInternational Journal of Production Economics
Volume230
DOIs
Publication statusPublished - Dec 2020

Keywords

  • China
  • Corporate social responsibility
  • Small and medium-sized manufacturing enterprises
  • Sustainability management
  • Trade credit

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics and Econometrics
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering

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