Trade Credit Financing Reveals the Impact of Strategic Deviation on Firm Performance: Chinese Manufacturing Industry

Investigating the Effects of Strategic Deviation and Trade Credit Financing on Firm Performance: Unraveling the Secrets of Business Success.Strategic deviation, a central aspect of a firm's decision making, can shape its fate in the competitive landscape. Equally critical is the role of trade credit financing, which acts as a bridge between strategic choices and firm performance. In this groundbreaking study, we examine the relationship between firms' strategic deviations and firm performance, while also investigating the mediating influence of trade credit financing. Using panel data from listed Chinese manufacturing firms from 2013 to 2020, our findings reveal a compelling revelation - a significant negative correlation between strategic deviation and firm performance, with trade credit financing acting as a conduit for this effect. This study marks a significant milestone in understanding the intricate dynamics of strategic deviation, and offers invaluable insights for firms striving to master the art of performance management.