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

Please cite as: 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.

31 Pages Posted: 22 Aug 2017 Last revised: 26 Mar 2019

See all articles by Esteban Lafuente

Esteban Lafuente

Universitat Politecnica de Catalunya (UPC Barcelona Tech)

Felipe Strassburger

Universidad Politécnica de Cataluña

Yancy Vaillant

Autonomous University of Barcelona - Department of Business Economics

Jordi Vilajosana

Universidad Politécnica de Cataluña

Date Written: August 19, 2017

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. By analyzing a large dataset including information for 3590 Spanish 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.

Keywords: Trade Credit, Suppliers, Bank Credit, Performance, Construction Industry, Spain

JEL Classification: G20, L74, M21

Suggested Citation

Lafuente, Esteban and Strassburger, Felipe and Vaillant, Yancy and Vilajosana, Jordi, Organizational Resilience and Performance: Analysis of the Relevance of Suppliers' Trade Credit and Bank Diversification in the Spanish Construction Industry (August 19, 2017). Please cite as: 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. , Available at SSRN: https://ssrn.com/abstract=3022425 or http://dx.doi.org/10.2139/ssrn.3022425

Esteban Lafuente (Contact Author)

Universitat Politecnica de Catalunya (UPC Barcelona Tech) ( email )

Barcelona, Barcelona
Spain

Felipe Strassburger

Universidad Politécnica de Cataluña ( email )

Av. Diagonal 647
Barcelona, Barcelona 08028
Spain

Yancy Vaillant

Autonomous University of Barcelona - Department of Business Economics ( email )

Plaça Cívica
Cerdañola del Valles
Barcelona, Barcelona 08193
Spain

Jordi Vilajosana

Universidad Politécnica de Cataluña ( email )

Av. Diagonal 647
Barcelona, Barcelona 08028
Spain

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