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http://dx.doi.org/10.14400/JDC.2022.20.3.157

The Effect of Proactive Accounts Receivable Management of SMEs on Credit Sales Decision and Business Performance  

Yoon, Tae-Jun (Department of Advanced Industry Fusion, Konkuk University)
Lee, Dong-Myung (Department of Advanced Industry Fusion, Konkuk University)
Seo, Cheol-Seung (Department of Advanced Industry Fusion, Konkuk University)
Publication Information
Journal of Digital Convergence / v.20, no.3, 2022 , pp. 157-167 More about this Journal
Abstract
This study was conducted to confirm the relationship between the proactive accounts receivable management of SMEs on credit sales decision making and business performance, and to derive effective accounts receivable management plan and systematic credit sales decision making plan. Based on 455 copies of data collected through a survey targeting SMEs, it was confirmed through factor analysis, reliability analysis, confirmatory factor analysis, and model fit verification, and the research hypothesis was verified with a structural equation model. As a result of the verification, credit rating had a positive effect on financial performance, sales performance and credit sales decision, while credit control had a positive effect on financial performance, while negative effect on sales performance and credit sales decision. In the mediating effect hypothesis test, credit sales decision had a positive effect between credit rating and business performance and a negative effect between credit control and business performance. The study suggests that if small and medium-sized enterprises improve their business performance through effective accounts receivable management, they can create a synergistic effect in enhancing the business performance of companies if they simultaneously improve their proactive accounts receivable management and credit sales decision ability. Future research is required to study the impact of factors such as segmentation of research subjects and credit transaction motives and accounts receivables management.
Keywords
Proactive accounts receivable management; Credit rating; Credit control; Credit sales Decision; Financial performance; Sales performance;
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Times Cited By KSCI : 3  (Citation Analysis)
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