Whether Industrial Clusters Can Improve Trade Credit Bargain Power of Enterprises to State-owned Customers?

Abstract

It is common for state-owned customers to delay payment and occupy capital flow of upstream enterprises excessively, which will damage the sustainable operation ability of upstream enterprises, then affect the healthy development of whole supply chain, but the enterprises in industrial clusters are in similar industries and adjacent regions, it is easier to realize cooperation and collaboration. Therefore, it is necessary to discuss whether industrial clusters can improve the trade credit bargain power of enterprises to state-owned customers. This research found that the disadvantage of state-owned property rights will reduce the enterprise’s trade credit bargain power, but if the industrial linkage or the proportion of same industries between enterprises and customers are higher, or they are in different cities but the distances between cities are closer, enterprises’ bargain power will improve, and the state-owned customers’ trade credit encroachment on enterprises will decrease. Private enterprises should consider establishing regional or industrial alliances to alleviate the encroachment of trade credit due to the inferior property rights, and promote the establishment of industrial clusters and modern supply chains. Whether Industrial Clusters Can Improve Trade Credit Bargain Power of Enterprises to State-owned Customers?Download