The joint effects of lead time, information sharing, and the accounts receivable period on reverse factoring
Industrial Management & Data Systems
ISSN: 0263-5577
Article publication date: 10 January 2020
Issue publication date: 10 January 2020
Abstract
Purpose
The purpose of this paper is to empirically investigate the joint effects of lead time, information sharing and the accounts receivable period on reverse factoring (RF) adoption from the suppliers’ perspective.
Design/methodology/approach
Supported by one of the largest commercial banks in China, survey data are collected from 424 Chinese manufacturing firms and analyzed using regression methods.
Findings
The results suggest that lead time positively affects suppliers’ RF adoption directly and indirectly through the accounts receivable period. Meanwhile, information sharing has a positive, direct and a negative, indirect influence on suppliers’ RF adoption.
Originality/value
The findings give suppliers and financial institutions a better understanding of how to leverage the benefits of RF.
Keywords
Acknowledgements
This research is supported by the National Natural Science Foundation of China with Grant Nos 71471118, 71871145, 71090403/71090400, 71420107024 and 16BGL190. It is also supported by the Institute of Supply Chain Integration and Service Innovation at South China University of Technology.
Citation
Huang, Q., Zhao, X., Zhang, M., Yeung, K., Ma, L. and Yeung, J.H.-y. (2020), "The joint effects of lead time, information sharing, and the accounts receivable period on reverse factoring", Industrial Management & Data Systems, Vol. 120 No. 1, pp. 215-230. https://doi.org/10.1108/IMDS-04-2019-0228
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited