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Information asymmetry and poor solvency caused by uncertainties in supply chains are the root causes of supply chain financing risks (SCFR). The purpose of this paper is to explore the effect of supply chain integration on reducing SCFR by incorporating the mechanisms of information sharing and controlling supply chain risks (SCR).

This paper proposes hypothesis to discuss the impact of integration on SCFR and the mediating roles of alleviating information asymmetry and mitigating SCR, aiming at discovering factors and mechanisms to reduce SCFR. The research model was validated by applying structural equation modeling on survey data from 321 Chinese small and medium-sized enterprises (SMEs).

Integration significantly reduces SCFR by dual approaches of information sharing and mitigating SCR, confirming that alleviating information asymmetry to reach information transparency and controlling SCR to reduce uncertainties facilitate less SCFR.

SMEs should enhance integration capability to reduce SCFR as it greatly influences the evaluation of financial service providers on SMEs and the sustainable financing capacity of SMEs. Additionally, any other methods that can improve information sharing and reduce SCR should be attached if possible.

This study represents a pioneering attempt to analyze the impact of integration on reducing SCFR by exploring the specific mechanisms of alleviating information asymmetry and mitigating SCR. Meanwhile, few prior empirical studies have highlighted the importance of SCFR.

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).

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).

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.

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.

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.