What is it about?
A financially distressed firm is not alone. It competes against other firms, supplies a market, and is supplied by other firms. We examine how these relationships influence a possible bankruptcy.
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Why is it important?
By considering a common supplier to a financially distressed firm and its stronger rival, we are able to identify three effects of the supply chain on the chances of bankruptcy.
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This page is a summary of: The Supply Chain Effects of Bankruptcy, Management Science, October 2015, INFORMS,
DOI: 10.1287/mnsc.2014.2079.
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