Determinants of supplier payment times before and during the pandemic: Empirical evidence from UK firms

Flynn, Anthony ORCID: https://orcid.org/0000-0002-1755-7986 and Li, Qian ORCID: https://orcid.org/0000-0003-0827-2134 2023. Determinants of supplier payment times before and during the pandemic: Empirical evidence from UK firms. Journal of Purchasing and Supply Management 29 (4) , 100850. 10.1016/j.pursup.2023.100850

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Abstract

Timely, compliant payment to suppliers is a significant issue in purchasing and supply management (PSM) but research into its determinants is limited. Here we draw on social responsibility, fintech and digital purchasing literatures, and institutional and stakeholder theories to explain variations in supplier payment times. A sample of 509 firms spanning 2018-2021 is used for panel regression analysis. Contrary to expectations, the COVID-19 pandemic did not lead to longer payment times or reduced compliance with payment terms, which we attribute to state-funded business supports and corporate decisions to accelerate payment to vulnerable suppliers. Institutional pressure in the form of payment codes was associated with shorter payment times and improved compliance during the pandemic. Supply chain finance (SCF) was associated with longer payment times during the pandemic while e-invoicing had no effect. Overall, institutional pressure seems to contribute to faster payment but stakeholder-centred fintech and digitalisation does not.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Business (Including Economics)
Subjects:	H Social Sciences > HF Commerce
Publisher:	Elsevier
ISSN:	1478-4092
Date of First Compliant Deposit:	10 May 2023
Date of Acceptance:	2 May 2023
Last Modified:	04 Oct 2023 21:19
URI:	https://orca.cardiff.ac.uk/id/eprint/159229

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