Green trade credit and sustainable firm performances during COVID-19: a conceptual review

Abstract

The modernization of the economic world creates environmental issues around the globe, to improve global problems such as global warming, inequality, climate change, hunger and poverty; it is necessary to improve sustainable performance. Mostly, the product manufacturers have a greater influence on the supply chain and the environment. Before COVID-19, the economy of Pakistan was belligerent but not collapsed; however, COVID-19 created a situation where most of the companies will go bankrupt. Pakistan is considered less developed financially, where extensive growth is predictable in the use of green trade credit demand by firms listed at the Pakistan Stock Exchange. Thus, the study analyzes the conceptual linkages between trade credit demand and sustainable firm performances through green credit by adopting the theory of RBV and also assesses the role and impact of COVID-19; further, suggest some policies to cope with COVID-19 challenges. Secondary literature is being reviewed after searching electronic databases like Scopus, Directory of Open Access Journals, Web of Science, ProQuest, ScienceDirect, Google Scholar and JSTOR. This study will help policymakers whenever they need to consider green trade credit decisions. Thus, buyers need to be proactive while adopting green trade credit to compete in this sustainable competitive marketplace.