To read the full version of this content please select one of the options below:

Exploring the factors influencing the adoption of supply chain finance in supply chain effectiveness: evidence from manufacturing firms

Jean-Noël Beka Be Nguema (School of Management, University of Science and Technology of China, Hefei, China)
Gongbing Bi (School of Management, University of Science and Technology of China, Hefei, China)
Zulqurnain Ali (School of Management, University of Science and Technology of China, Hefei, China)
Aqsa Mehreen (School of Public Affairs, University of Science and Technology of China, Hefei, China)
Christophe Rukundo (School of Management, University of Science and Technology of China, Hefei, China)
Yangqian Ke (School of Foreign Studies, Anhui University, Hefei, China)

Journal of Business & Industrial Marketing

ISSN: 0885-8624

Article publication date: 25 January 2021

Issue publication date: 25 May 2021

848

Abstract

Purpose

Several manufacturing firms are facing various internal concerns such as financial and operational issues, which strongly pushed the firms to search for solutions (e.g. supply chain finance; SCF) to sustain their supply chain operations and supply chain effectiveness (SCE). In this view, this study attempts to explore four key factors influencing the adoption of SCF, which, in turn, impacts SCE in Chinese manufacturing firms. Therefore, this study aims to propose that how information sharing, external collaboration, digitization and financial institutions enable manufacturing firms’ to adopt SCF that subsequently enhances SCE. Moreover, how supply chain risk (SCR) mediates the association between SCF adoption and SCE.

Design/methodology/approach

The current research recruited 177 Chinese manufacturing firms administrating a questionnaire to supply chain managers and tested the proposed conceptual model and associations using structural equation modeling.

Findings

The results reveal that all four factors are positively related to the adoption of SCF, which consequently improves the SCE of manufacturing firms. Moreover, the findings show that the effect of SCF significantly and positively impact SCE. Further, the result also confirmed that SCF significantly mitigates SCR, thereby leads to improves SCE.

Research limitations/implications

The current study mainly focuses on Chinese manufacturing firms, which may generate low generalizability. In addition, this study was based on a cross-sectional research design which may generate common method bias. Therefore, more comparative studies are needed between developed and developing countries to enhance the generalizability of the study findings.

Practical implications

This study provides significant new insights about how marketing managers and practitioners can adopt SCF in manufacturing firms via information sharing, external collaboration, digitization and financial institutions to mitigate firm risk and enhance SCE.

Originality/value

The approach used in this research differs from many of the previous studies and investigates the factors of adoption of SCF and their impact on SCE in the manufacturing firm sector within the context of the Chinese economy. Therefore, this research is an important guide for scholars, managers and executives of marketing, while providing them with a new model, significant insights which are significant in their organizations.

Keywords

Acknowledgements

This research was supported by the Natural Science Foundation of China (nos. 71731010 and 71571174).

Conflict of interest declaration: No conflict of interest was reported by the authors.

Citation

Beka Be Nguema, J.-N., Bi, G., Ali, Z., Mehreen, A., Rukundo, C. and Ke, Y. (2021), "Exploring the factors influencing the adoption of supply chain finance in supply chain effectiveness: evidence from manufacturing firms", Journal of Business & Industrial Marketing, Vol. 36 No. 5, pp. 706-716. https://doi.org/10.1108/JBIM-01-2020-0047

Publisher

:

Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

Related articles