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How can SMEs acquire supply chain financing: the capabilities and information perspective

Qiang Lu (School of Business, Beijing Technology and Business University, Beijing, China)
Beini Liu (School of Business, Beijing Technology and Business University, Beijing, China)
Hua Song (School of Business, Renmin University of China, Beijing, China)

Industrial Management & Data Systems

ISSN: 0263-5577

Article publication date: 21 February 2020

Issue publication date: 1 April 2020

1572

Abstract

Purpose

This paper aims to explore how innovation capability and market response capability of small and medium-size enterprises (SMEs) affect their supply chain financing performance (SCFP) through supply chain financing solutions (SCFS) adoption. At the same time, the mechanism by which supply chain financing reduces information asymmetry before (ex-ante) and after (ex-post) SCFS adoption to promote SCFP is also inquired.

Design/methodology/approach

Drawing on enterprise competence theory, this paper proposes a theoretical model and tests it using survey data from a sample of 218 SMEs in China. Multiple regression analysis is employed to test the hypothesis.

Findings

The study finds that: (1) SMEs' innovation capability and market response capability positively affect SCFP. (2) SMEs' innovation capability and market response capability exert significantly positive effects on SCFS adoption. (3) SCFS adoption plays a mediating role between SME capabilities and SCFP. (4) Supply chain integration (SCI) and information technology application have no moderating effects on the relationship between SME capabilities and SCFS adoption. Finally, (5) SCI and information technology application have positive moderating effects on the relationship between SCFS adoption and SCFP.

Originality/value

Based on enterprise competence theory, this study sheds light on the internal mechanism through which SMEs' capabilities affect SCFP by introducing SCFS adoption and explores the role of situational factors in SCF in reducing ex-ante and ex-post information asymmetry. This study provides an innovative theoretical perspective on supply chain financing and enriches the existing research.

Keywords

Acknowledgements

The research underlying this paper was supported by the National Natural Science Foundation of China (No. 71902007), Beijing Natural Science Foundation (No. 9204022), Beijing Social Science Foundation (No. 19GLC075) and Social Science Program of Beijing Municipal Education Commission (No. SM202010011005).

Citation

Lu, Q., Liu, B. and Song, H. (2020), "How can SMEs acquire supply chain financing: the capabilities and information perspective", Industrial Management & Data Systems, Vol. 120 No. 4, pp. 784-809. https://doi.org/10.1108/IMDS-02-2019-0072

Publisher

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Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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