Highlight risk management in supply chain finance: effects of supply chain risk management capabilities on financing performance of small-medium enterprises

Abstract

Purpose

The purpose of this paper is to explore the important role of supply chain risk management (SCRM) capabilities as pre-factors for SMEs to improve supply chain financing performance (SCFP), also incorporating the effect of supply chain integration (SCI).

Design/methodology/approach

From the intersection of SCRM and SCF literature, this paper proposed hypothesis to discuss the impact of SCRM capabilities on SCFP and the role of SCI, aiming at combine SCRM with supply chain financing management. The research model was validated applying structural equation modeling on survey data from 286 Chinese small and medium-sized enterprises (SMEs).

Findings

Four dimensions of SCRM capabilities have significant positive effects on SCFP with different significant levels, confirming that they are important pre-factors in supply chain finance (SCF). In addition, the impact of SCRM capabilities on SCFP differ when SCI varies, indicating the promoting effect of SCI.

Practical implications

SMEs should establish SCRM capabilities as supply chain risks greatly influence the evaluation of financial providers and the achievement of SCF. Meanwhile, SCI should be attached for it enables superior SCFP even if SCRM capabilities are relatively limited.

Originality/value

This study represents a pioneering attempt to analyze the pre-factors of SMEs in improving SCFP by combing SCRM with SCF management. Few prior studies have highlighted the importance of SCRM in SCF.

Citation

Qiao, R. and Zhao, L. (2023), "Highlight risk management in supply chain finance: effects of supply chain risk management capabilities on financing performance of small-medium enterprises", Supply Chain Management, Vol. 28 No. 5, pp. 843-858. https://doi.org/10.1108/SCM-06-2022-0219