An economic downturn can occurred through unexpected events in various fields, such as the subprime mortgage crisis and the outbreak of Coronavirus Disease-2019 (COVID-19). Trade credit is important for small- and medium-sized enterprises (SMEs), especially during a monetary contraction, as it is the last option for firms that lack bank credit. This study aims to determine whether trade credit is profitable for the buyer and supplier firms during and after a financial crisis. We use panel data consisting of all trade credit transactions and financial statements of 5,751 Korean firms during the period 2008–2012. It shows that trade credit is more profitable for both buyers and suppliers in the post-crisis period than during the crisis. Moreover, trade payable is more effective for unconstrained buyers than for constrained buyers. Finally, a mixed strategy is superior to an aggressive or passive strategy of SMEs. The results suggest less profitability of trade credit during a period of contraction and greater sensitivity of the buyer SMEs, emphasizing the idiosyncratic liquidity strategy of each firm. This study can be helpful to develop a strategy of profitable trade credit for SMEs and to establish a policy of managing liquidity for the authority.

Purpose – The purpose of this paper is to find out a range of cues that trigger employees to willingly make efforts for corporate development in small and medium enterprises. This was determined by assessing the effects of employees' value inclination on their job satisfaction and organizational citizenship behavior as well as how they perceived their organizational support. Research design, data, and methodology – A total of 126 valid questionnaire sheets collected from SME employees were analyzed with SPSS 24.0 and AMOS 24.0 involving simple regression analysis, multiple regression analysis, hierarchical moderated regression analysis and 3-step mediated regression analysis. Results – The analyses highlighted employees’ personal value inclination had positive effects on their job satisfaction, which in turn enhanced their organizational citizenship behavior. Meanwhile, individualist and collectivist inclination exerted greater effects on job satisfaction and organizational citizenship behavior, respectively. The study also revealed that perceived organizational support moderated the relationship between job satisfaction and organizational citizenship behavior. Conclusion – Hence, CEOs in SMEs should avert any dichotomous analysis of their employees’ value inclination, respect their personal value inclinations and also apply factors that could raise their job satisfaction. Likewise, it was shown that SME employees need to make personal efforts for organizational development.

Purpose - Distribution channels cannot function without cooperation. While evidence suggests channel power plays a fundamental role in fostering successful manufacturer-dealer channel cooperation in Western countries distribution systems, little is known empirically as to how dealers’possession of non-mediated powers influence SME manufacturers’ cooperation in Asian developing countries. Research design, data, methodology - Drawing upon the extant distribution channels literatures; this study conceptualizes a model and examines the effects of dealer’s non-mediated powers on manufacturing SME firms, as well as the mediating influence of trust, relationship satisfaction and commitment. A survey of 400 manufacturing SMEs in Taiwan empirically supports the proposed hypothesis. Results - The model is acceptable in terms of overall goodness of fit. Acceptable model fit are indicated by χ2/(df): 2.35, GFI≧.90; RMSEA values≦ .08; IFI, TLI and CFI values≧.90. Our results indicate that, GFI (0.910), IFI (0.937), TLI (0.903), CFI (0.936), and RMSEA (0.079) and therefore, achieved the suggested thresholds. Conclusions - The results of this study have some managerial implications for managers in the dealer’s firms. The overall implication from the findings is that managers can utilize expert, referent and traditional legitimate powers to attain channel cooperation with manufacturing SMEs in addition to garnering their trust, relationship satisfaction and commitment.