JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org.. Wiley and Financial Management Association International are collaborating with JSTOR to digitize, preserve and extend access to Financial Management. Long, Malitz, and Ravid (1993) proposed a model based on the idea that the major purpose of trade credit is to allow buyers to assess the quality of the firm's products before paying. In this paper, we apply a similar methodology not only using a sample of industrial firms, but also a sample of Belgian wholesale distribution firms. Furthermore, we develop and test two additional hypotheses, based on the observation that industrial and financial groupings play an important role in the Belgian economy. While our results partially confirm the four hypotheses of Long et al., we find evidence that a firm selling to a linked customer extends trade credit for reasons other than assessing product quality. We find that when a firm has a shortage of cash, investment in accounts receivable from linked firms is reduced. An excess of cash does not seem to influence trade credit policy. 0 Most firms have an important amount of cash invested in accounts receivable. Trade credit is also a major source of financing through accounts payable. There have been several sorts of explanations proposed for trade credit. Finance-based models (e.g. Schwartz, 1974) argue that firms able to obtain funds at a low cost will offer trade credit to firms facing higher financing costs. Tax-based models (e.g. Brick and Fung, 1984) see trade credit as arbitraging tax differences between buyers and sellers. Liquiditybased models (e.g. Emery, 1984) see trade credit as a more profitable short-term investment than marketable securities. Operational models (e.g. Emery, 1987) stress its role in smoothing demand. Recently, Scherr (1996) examined optimal limits for trade credit.Recently, Long, Malitz, and Ravid (1993), inspired by Smith (1987), argued that trade credit allows customers to assess product quality before paying. Similar models have been developed by Lee and Stowe (1993) and Emery and Nayar (1994). The Long et al. model is our starting point. After setting out its main ideas and hypotheses, we test it by using two samples: 393 Belgian industrial firms and 288 Belgian wholesale distribution firms. The results partially confirm the predictions of the model.We then extend the model to take into account other financial connections among firms using trade credit. For the last 150 years, industrial and financial groupings and combines have played an important role in the Belgian economy. Holding companies seem to substitute for poorly developed Belgian capital markets, in order to organize the flows of funds between group members. Trade credit is one dimension in a com...

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T HIS ARTICLE PROVIDES an overview of the literature on nonprofit principal-agent relationships. It depicts the nature of agency theory and stewardship theory, analyzes the origin of their struggle within the nonprofit structure, and marks directions for a conciliatory approach.Note: We gratefully acknowledge Scott Gassler, Bruno Heyndels, the three anonymous reviewers, and editor Roger Lohmann for their constructive comments.

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Purpose-Little empirical research has been conducted on competitive intelligence (CI). This paper aims to contribute to the quantitative strand of the CI literature by exploring and validating the theoretical constructs of the CI process. Design/methodology/approach-Data from 601 questionnaires filled out by South African and Flemish exporters were subjected to exploratory factor analysis and construct equivalence analysis between the sub-samples. Findings-The results showed that the CI process consists of three constructs, while the context in which CI takes place consists of four constructs. This agrees to some extent with the literature. When verifying the constructs for both cultures it was found that all but one CI context construct can be viewed as equivalent in both groups. Bias analysis identified one item in the questionnaire that was biased. Via regression analysis it was also indicated that the context in which CI takes place influences the CI process to a large extent. The research identified size as an important influencing factor in a business' CI process. Practical implications-Businesses involved in CI should take note that an improvement in their formal infrastructure, employee involvement and internal information processes could enhance their CI capability. Originality/value-This paper contributes towards the formalising of the constructs of competitive intelligence.

This contribution examines differences in four motivation-related concepts between employees in not-for-profit and for-profit sector service organizations. Using regression analyses, 630 knowledge workers, employed in either the not-for-profit or the for-profit sector, were compared. The majority of the hypotheses were supported by the data. Even after the impact of gender, age, seniority, contract type, and task characteristics were controlled for, employees from both sectors differed significantly. Not-for-profit workers valued more social service, perceived a better person—organization fit, and were more motivated by identified and integrated regulation. Their for-profit counterparts valued more advancement and were more motivated by external regulation. These conclusions account for a broad range of activities within the service industry because a wide variety of organizations were included in the study.

We investigate the role of trade credit as a source of financing. Using a sample of 661 large non-financial Belgian firms for the 1989-1991 period, we find that the amount of trade credit a buyer takes is determined by his need for funds and the internally available funds. Trade credit is primarily used to finance short-term assets. As such, it seems to be an important alternative not only for short-term bank debt but also for long-term financial debt, including intragroup debt. We find no evidence that the amount of trade credit taken is influenced by affiliation with the supplier. Copyright Blackwell Publishers Ltd 1999.

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