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1 – 10 of over 4000Little is known about the determinants of supply chain finance (SCF) adoption among small and medium-sized enterprises (SMEs) in developing countries. This study aims to address…
Abstract
Purpose
Little is known about the determinants of supply chain finance (SCF) adoption among small and medium-sized enterprises (SMEs) in developing countries. This study aims to address this relevant research gap and hence, draws on the resource-based view and transaction cost economies to empirically investigate five factors that make SCF adoption practicable among SMEs in Ghana.
Design/methodology/approach
The approach involves a sample of 257 SME managers/owners and modelling via structural equations modelling.
Findings
All five factors (innovative capability, information sharing, inter- and intra-firm collaboration, external financing and trade process digitization) were found to impact positively and significantly on SCF adoption. The findings provide SME managers/owners with a research model which guides them on how to settle the SCF process.
Research limitations/implications
This paper used a cross-sectional survey, which makes it impossible to access changes over time. In addition, the use of quantitative method limits respondents from expressing their feelings fully. Using a mixed or qualitative methodology will provide avenues for future research.
Practical implications
This paper offers a completive advantage for Ghanaian SMEs to strengthen their relationships while collaborating with each other. The findings suggest that by adopting SCF solutions, SMEs can optimize their liquidity and working capital. The factors underpinning SCF adoption are of incredible attractiveness for SME managers/owners to discover the relevant practice of SCF solutions. SMEs should adopt SCF strategies for improving their capability to respond promptly to transactions.
Originality/value
This paper is among the few papers that have examined these five factors in a developing economy context. The study also provides new understanding of the factors that influence SCF adoption in the context of a developing economy.
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Hua Song, Siqi Han and Kangkang Yu
This study examines the cognitive factors of adopting blockchain technology in various supply chain scenarios and its role in reframing the distinctive values of supply chain…
Abstract
Purpose
This study examines the cognitive factors of adopting blockchain technology in various supply chain scenarios and its role in reframing the distinctive values of supply chain financing. Based on expectancy theory, this study explores the different profiles underlying the components of expectancy, valence and instrumentality.
Design/methodology/approach
This is a multiple-case study of four Fintech companies using blockchain technology to promote the performance of supply chain operations and financing.
Findings
The results show that blockchain-enabled supply chain finance (BSCF) can be classified into four scenarios based on the scope and purpose of blockchain technology applications. The success of BSCF depends on the profiles of BSCF expectancy (the recognized purpose and scope of BSCF), instrumentality (identified blockchain attributes and other technology combinations) and valence (the perceived distinctive value of BSCF). Blockchain attributes help solve information asymmetry problems and enhance financing performance in two ways: one is supporting transparency, traceability and verification of transmissions and the other entails facilitating a transformation to new business models.
Originality/value
This research applies a new perspective based on expectancy theory to study how cognitive factors affect Fintech companies' blockchain solutions under a given supply chain operation or financing activity. It explains the behavioral antecedents for applying blockchain technology, the situations appropriate for the different roles of blockchain technology and the profiles for realizing the value of blockchain technology.
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Jaspreet Kaur, Satish Kumar and Rohit Joshi
This exploratory study aims to explore the operational and financial constraints faced by small and medium enterprises (SMEs) in India during the COVID-19 pandemic. The paper…
Abstract
Purpose
This exploratory study aims to explore the operational and financial constraints faced by small and medium enterprises (SMEs) in India during the COVID-19 pandemic. The paper highlights the role of supply chain finance (SCF) in the uncertain business environment caused by the pandemic.
Design/methodology/approach
The study adopts an inductive approach and conducts convergent interviews with 32 SME owners and bank officials who are associated with SME-related financial transactions. The analysis of the interview data has been done through a grounded theory approach.
Findings
The findings portray four key themes representing the operational and financial constraints faced by SMEs during the pandemic. Further, the study identifies four drivers of SCF adoption among SMEs, including capital constraints, high inventory turnover cycle time, high order fulfilment cycle time and long debtors’ collection period.
Practical implications
The study provides various insights to the managers and owners of SMEs to deal with the economic crisis and eliminate the financial pressure created by the pandemic. The study enlightens the policymakers about the struggles of the SMEs during the economic turmoil created by the pandemic and guides them to introduce the relevant policies to resolve their problems.
Originality/value
To the best of the authors’ knowledge, this is the first study to identify the factors driving the SMEs to adopt SCF due to the economic chaos created by the pandemic. Also, the study theoretically contributes to the literature by developing a theoretical framework for SCF adoption based on grounded theory.
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Zainal Abidin, Wiwiek Rabiatul Adawiyah, Intan Shaferi and Akhmad Sodiq
Despite extensive research on supply chain management (SCM), the literature lacks a perspective to empirically assess the importance of poverty alleviation in social business…
Abstract
Purpose
Despite extensive research on supply chain management (SCM), the literature lacks a perspective to empirically assess the importance of poverty alleviation in social business. Using resources dependence theory, the purpose of this study is to analyze to ascertain whether financial innovation has a powerful solution for business sustainability and, hence, poverty alleviation in developing countries. This study reviews the financial innovations offered by Dompet Dhuafa Republika in integrated supply chain management (ISCM) of smallholder livestock business through Tebar Hewan Kurban (Spreading Sacrificial Animals) program to overcome capital and marketing problems at the farmer level and distribute Qurban meat to the recipients.
Design/methodology/approach
This study was conducted using descriptive qualitative method. The data were obtained through a field survey, by interviewing two crowdfunding-based investment companies, 250 partner farmers, program managers and assistants, marketing partners, donors/consumers/person who sacrifice and Mustahik (recipients of Qurban meat) involved in program implementation, using purposive sampling method. Focus group discussion was conducted with selected panelists to validate the results of the field survey.
Findings
The results of this study showed that the Tebar Hewan Kurban program provides greater benefits to farmers, while increasing the distribution of Qurban meat to be more equitable. The role of moneylenders and middlemen can also be eliminated. Donors feel satisfied because their goals are fulfilled in the Qurban ritual. Program implementers and investors also got decent returns. ISCM is very feasible to be developed on a wider scale, to improve the welfare of farmers or fishermen.
Research limitations/implications
This study used a set of samples of the assisted areas from only one institution, which may lead to institution-specific results. Although the sample is small, the results of this study are expected to provide new insights into the implementation of the Qurban, which will provide more profits and benefits for partner farmers. In broader practice, the program flow is worth considering compared to similar programs in other institutions, in Indonesia or abroad. Because of the COVID-19 pandemic situation, the field survey and focus group discussion were carried out online.
Practical implications
The results show that ISCM is able to increase the income of farmers. Practically, this program can be duplicated in similar institutions, as well as in government or non-government organizations, in Indonesia and abroad, that have the same context and activity.
Social implications
This study offers several social contributions by exploring how and why ISCM can eliminate the role of moneylenders and middlemen, increasing the small farmers' income, providing reasonable profits to parties involved in marketing and satisfying donors and equitable distribution of Qurban meat.
Originality/value
This study contributes to the literature by confirming the higher impact of ISCM in social business on poverty alleviation. Therefore, this paper provides an alternative solution to increase the income of small farmers through the supply of animals for Qurban or other religious rituals through ISCM arrangements.
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Prasad Vasant Joshi, Bishal Dey Sarkar and Vardhan Mahesh Choubey
Supply chain finance (SCF) has become a vital ingredient that fosters growth and provides flexibility to the global supply chain. Thus, it becomes essential to understand the…
Abstract
Purpose
Supply chain finance (SCF) has become a vital ingredient that fosters growth and provides flexibility to the global supply chain. Thus, it becomes essential to understand the factors that contribute to the success of the supply chain finance ecosystem (SCFE). This study aims to identify the critical success factors (CSFs) for the development of an efficient and effective SCFE. Based on their characteristics, the study intends to classify the factors into constructs and further establish a hierarchical relationship among the CSFs.
Design/methodology/approach
The study is based on empirical data collected from 221 respondents based on administered questionnaires. Exploratory factor analysis (EFA) is carried out on 16 selected factors (out of 21 proposed factors) based on the feedback of the experts and the factors were classified into four constructs. The total interpretive structural modeling (TISM) model was developed by identifying and finalizing CSFs of the SCFE. The model developed a hierarchical relationship between the various factors.
Findings
The study identified significant CSFs for the efficient and effective SCF ecosystem. Four constructs were developed by analyzing CSFs using the EFA. The finalized 16 CSFs modeled through the TISM and further hierarchical relationship established between the CSFs concludes that governmental policies and sectoral growth are the strongest driving forces and financial attractiveness is the weakest driving force. Based on the CSFs and the constructs identified, it was found that for the success of the SCF ecosystem, the existence of an economic ecosystem provides a facilitating framework for the overall development of the SCFE. Also, the trustworthiness among the partners fosters better relationships and results in financial feasibility and offers business opportunities for all the stakeholders.
Practical implications
This study will help the SCF partners across the globe understand the CSFs that ensure development of mutually beneficial SCF ecosystems and provide flexibility to the supply chain partners. The CSFs would provide insights to the policymakers and the financial intermediaries for providing a conducive environment for the development of a better SCF ecosystem. Also, the buyers and sellers would understand the CSFs that would develop better relationships among them and ultimately help in development of business across the globe.
Originality/value
The study identifies the CSFs for the SCF ecosystem. The study ascertains the significant factors and classifies them into clusters using EFA. Unlike the literature available, the paper develops the hierarchical relationship between the CSFs and develops a model for an efficient and effective SCF ecosystem.
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Qinru Wang, Xiaobo Xu and Yonggui Wang
In this study, the authors investigate whether supply chain (SC) strategies (lean or agile) improve or hinder the supply chain transparency (SCT) and what factors affect this…
Abstract
Purpose
In this study, the authors investigate whether supply chain (SC) strategies (lean or agile) improve or hinder the supply chain transparency (SCT) and what factors affect this relation.
Design/methodology/approach
The authors measure the level of SC strategy using natural language processing based on the annual financial reports of listed firms. Secondary data analysis is conducted on various databases encompassing 1,241 listed firms in China from 2011 to 2020. Additional tests are performed to assess the robustness of the results, and alternative explanations are duly considered.
Findings
The authors find that firms with an advanced level of SC strategy perform better on SCT. Furthermore, the authors observe that Agile SC strategy and Lean SC strategy have different effects on SCT over a firm’s life cycle. Agile SC strategy (the ratio of the proportion of Agile SC strategy word frequency divided by the proportion of Lean SC strategy word frequency greater than 1) has a significantly positive effect on SCT in the maturity stage; Lean SC strategy (the ratio less than 1) has a positive effect on SCT in the growth and decline stages. An increase in online media coverage negatively moderates the impact of the SC strategy (frequency of Lean and Agile SC strategy-related keywords) on SCT in the maturity stage. An increase in government environmental subsidies positively moderates the impact of SC strategy on SCT in the maturity and decline stages. Additionally, an increase in industrial competition intensity positively moderates the impact of the SC strategy on SCT in the decline stage.
Originality/value
The authors' study contributes to the Operations and Supply Chain Management (OSCM) literature by revealing the positive impact of SC strategy on SCT with objective secondary data. Additionally, the authors examine the moderating effects of moderators over the lifecycle of a firm on this relationship in an emerging market context. The authors' findings offer valuable guidance to companies operating in diverse market environments, providing actionable insights to strengthen their SC strategies and enhance SCT.
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This study aims to propose and develop a new digital collaborative supply chain (CSC) model completely based on the emerging Industry 4.0 technologies. The digital model aims to…
Abstract
Purpose
This study aims to propose and develop a new digital collaborative supply chain (CSC) model completely based on the emerging Industry 4.0 technologies. The digital model aims to support the main factors likely to affect CSC. This proposed model combines the most well-known digital tools such as blockchain technology, Internet of Things (IoT) and cloud computing (CC).
Design/methodology/approach
Motivated by its effective solution to enhance trust, traceability, transparency and minimize costs and risks, the combination of the most well-known digital tools such as blockchain technology, IoT and CC to develop a new digital CSC model is addressed in this research. This study first investigates and conducts a deep review analysis that explores how Industry 4.0 technologies can enable collaboration mechanisms. Second, based on an analysis of literature review, the main factors likely to affect CSC have been identified and analysed. Finally, the authors combine digital tools to support the identified factors to enhance transparency, traceability and trust by proposing a new digital CSC model. This proposed model will be used as a referential guide to encourage and motivate SC actors to collaborate in digital CSC.
Findings
This work provides many important contributions to theory and practice. First, role and impacts of the most well-known digital tools such as blockchain technology, IoT and CC for digitizing CSC have separately presented and developed. Second, the authors conceptualized a framework by developing a new digital CSC model. This conceptual digital model can be used as a referential guide for all SC actors in order to motivate them to collaborate in a modern, intelligent, secure and reliable SC. It can also support all factors affecting CSC.
Originality/value
The originality of this study is first investigating separately the roles and impacts of each digital tool on CSC performance. Second, the authors combine the most well-known digital tools such as blockchain technology, IoT and CC in order to develop an efficient, smart, modern and new digital CSC model. In this combination, CC is used as platform as a service enabling to link and connect the blockchain and IoT to support the main factors affecting CSC. Unlike to digital CSC model with only one digital tool, the proposed model is more realistic since depending on the information to be shared with other actors, the most appropriate tool will be automatically detected and used. This solution offers a large choice to SC actors for real time data and information sharing. In addition, the proposed model will largely enhance traceability, transparency and trust in CSC.
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Jiajun Tan, Wai Peng Wong, Chee Keong Tan, Suriyan Jomthanachai and Chee Peng Lim
Technology is the lifeline for the logistics industry, and it has been immensely disrupted by the emerging blockchain technology. This paper has two main objectives. The first is…
Abstract
Purpose
Technology is the lifeline for the logistics industry, and it has been immensely disrupted by the emerging blockchain technology. This paper has two main objectives. The first is to explore how the current blockchain technology can be implemented in the logistics industry with the aim of improving logistic services amongst the network of logistics service providers (LSPs). The second is to propose the development of a blockchain model for the small and medium logistics service supply chain.
Design/methodology/approach
A prototype blockchain-based logistics system has been created and tested in a case study with a real logistics company. The primary technologies for developing a blockchain model on the Hyperledger platform as well as how the system is designed based on the logistics service flow are explained.
Findings
The study has resulted in the successful implementation of the proposed prototype blockchain-based logistics system. In particular, the case company has managed to fully utilise the developed tracking and tracing system. Whilst utilising the prototype, the participants have been able to fulfil their responsibilities in an effective manner. The performance of LSPs has improved following the World Bank Logistics Performance Index (LPI) criteria.
Originality/value
This paper contributes to current research in the application of blockchain technologies in the domain of logistics and the supply chain to progress LSPs towards Logistics 4.0. The current frameworks for Logistics 4.0 and how blockchain as a disruptive technology revolutionises logistic services are reviewed. In addition, this paper highlights the benefits of blockchain technology that LSPs can leverage to further improve their performance based on the LPI criteria.
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Aleksi Harju, Jukka Hallikas, Mika Immonen and Katrina Lintukangas
The purpose of this study is to investigate the role of procurement digitalization in reducing uncertainty in the supply chain (SC) and how it relates to mitigating SC risks and…
Abstract
Purpose
The purpose of this study is to investigate the role of procurement digitalization in reducing uncertainty in the supply chain (SC) and how it relates to mitigating SC risks and improving SC resilience (SCRES).
Design/methodology/approach
Based on survey data collected from the procurement functions of 147 Finnish firms, this study conceptualizes data analytics, information sharing and procurement process digitalization as drivers of procurement digitalization and investigates their impact on SC risk management and SCRES by using partial least squares path modeling.
Findings
Procurement digitalization through data analytics and digital process maturity requires effective information sharing among SC partners and SC risk management to be able to improve SCRES. Procurement digitalization increases information-processing capacities and reduces uncertainty in the SC.
Originality/value
This study contributes to the understanding on the relationships between procurement digitalization and SCRES.
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