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Article
Publication date: 25 January 2022

Rajesh Rajaguru, Margaret Jekanyika Matanda and Wenqing Zhang

While supply chain scholars concur on the need to integrate supply chain finance (SCF) processes to meet ever-changing customer demands, it is unclear how SCF influences business…

Abstract

Purpose

While supply chain scholars concur on the need to integrate supply chain finance (SCF) processes to meet ever-changing customer demands, it is unclear how SCF influences business performance in the presence of perceived opportunistic behavior. Therefore, the study aims to investigate the moderating role of perceived partner opportunism in the supply chain.

Design/methodology/approach

Drawing on the dynamic capability theory (DCT), this study investigates how perceived supply chain partner opportunism moderates the mediating role of supply- and demand-oriented performances on the link between SCF and business performance, from the retail industry perspective. Data was collected from Australian retailing firms. In all, 293 completed surveys were received. Moderated mediation analysis was conducted.

Findings

The results of this study indicate that supply- and demand-oriented performances serially mediate the relationship between SCF and business performance. The study also found that the effect of SCF on performance was higher when perceived partner opportunism was lower.

Practical implications

To respond to changes in consumer preferences and demand effectively, supply chain and marketing managers need to understand the complex interaction between supply- and demand-oriented performances and the key role of SCF in developing such capabilities.

Originality/value

The current study theorizes and demonstrates the effects of supply- and demand-oriented performances that can facilitate the effects of SCF on business performance. Also, the study reveals the effect of each dimension of SCF (accounts payable, accounts receivable and inventory finance) on supply- and demand-oriented performances. Additionally, the study shows the key role of perceived partner opportunism in supply chain management.

Article
Publication date: 12 March 2021

Liukai Wang, Ji Yan, Xiaohong Chen and Qifa Xu

The purpose of this study is to bridge the gap in the literature on supply chain finance (SCF) by exploring the relationship between network capabilities and corporate financial…

1141

Abstract

Purpose

The purpose of this study is to bridge the gap in the literature on supply chain finance (SCF) by exploring the relationship between network capabilities and corporate financial performance (CFP) in financial supply chains (FSCs).

Design/methodology/approach

The authors collect panel data and adopt regression analysis to analyse the joint investment activities among 1359 manufacturing firms and 289 financial service providers in China to explore how network capabilities, both network power and network centrality, improve CFP in the FSCs.

Findings

Under the FSCs environments, network centrality (i.e. eigenvector centrality, closeness centrality and betweenness centrality) raises CFP (ROA, ROE and Tobin's Q) and network power (node degree, clustering coefficient) also improves CFP. However, node strength from the network power stream has a negative effect on Tobin's Q, indicating that when the partner of a firm has an extremely strong influence in FSCs; this weakens the bargaining ability and flexibility of the focal firm, thus reducing its long-term financial performance.

Practical implications

The joint investment activities among supply chain partners and financial service providers help managers understand the advanced financing solutions generated by internal and external network organisations as well as be aware of network capabilities' impact on CFP in FSCs.

Originality/value

This study answers the call for more empirical research on SCF to provide a broader sample to examine financial supply chain management. This is one of the earliest studies to shed light on a new perspective – how network capabilities improve CFP in the FSCs.

Details

International Journal of Operations & Production Management, vol. 41 no. 4
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 8 August 2016

Federico Caniato, Luca Mattia Gelsomino, Alessandro Perego and Stefano Ronchi

Recently, in response to the credit crunch and the increased costs of financing, new solutions for supporting the financial management of supply chains, known as supply chain

13751

Abstract

Purpose

Recently, in response to the credit crunch and the increased costs of financing, new solutions for supporting the financial management of supply chains, known as supply chain finance (SCF), have been developed. They exploit the strengths of supply chain links to optimise working capital. The purpose of this paper is to provide a reference framework that links together the objectives leading to the adoption of SCF solutions and several moderating variables.

Design/methodology/approach

This paper adopts a multiple case study methodology, analysing 14 cases of the application of SCF solutions among Italian companies.

Findings

The main findings are the identification of the different objectives leading to the adoption of SCF; the analysis of the impact of moderating variables (the level of inter- and intra-firm collaboration, the level of the trade process digitalisation and the bargaining power and financial strength of the leading firm) on SCF adoption; and the formulation of a reference framework supporting the effective adoption of SCF solutions.

Research limitations/implications

This contribution is exploratory in nature; theory-testing contributions should be the focus of further research. Also, the sample is limited to Italian companies. Finally, the service provider’s point of view has been marginally taken into consideration in this study.

Originality/value

The article addresses the need for more empirical research on SCF. It provides a reference framework focused on the objectives and moderating variables leading to effective SCF adoption, providing a theory-building contribution on the general topic of SCF and on the specific topic of the adoption process of different SCF solutions.

Details

Supply Chain Management: An International Journal, vol. 21 no. 5
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 10 January 2020

Qiuping Huang, Xiande Zhao, Min Zhang, KwanHo Yeung, Lijun Ma and Jeff Hoi-yan Yeung

The purpose of this paper is to empirically investigate the joint effects of lead time, information sharing and the accounts receivable period on reverse factoring (RF) adoption…

Abstract

Purpose

The purpose of this paper is to empirically investigate the joint effects of lead time, information sharing and the accounts receivable period on reverse factoring (RF) adoption from the suppliers’ perspective.

Design/methodology/approach

Supported by one of the largest commercial banks in China, survey data are collected from 424 Chinese manufacturing firms and analyzed using regression methods.

Findings

The results suggest that lead time positively affects suppliers’ RF adoption directly and indirectly through the accounts receivable period. Meanwhile, information sharing has a positive, direct and a negative, indirect influence on suppliers’ RF adoption.

Originality/value

The findings give suppliers and financial institutions a better understanding of how to leverage the benefits of RF.

Details

Industrial Management & Data Systems, vol. 120 no. 1
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 25 March 2021

Hua Song, Mengyin Li and Kangkang Yu

This study examines the role of financial service providers (FSPs) in assessing the supply chain credit of small and medium-sized enterprises (SMEs) and how they help SMEs obtain…

2668

Abstract

Purpose

This study examines the role of financial service providers (FSPs) in assessing the supply chain credit of small and medium-sized enterprises (SMEs) and how they help SMEs obtain supply chain finance (SCF) through an established digital platform using big data analytics (BDA).

Design/methodology/approach

This study conducted data mining analysis on the archival data of China's FSPs in the mobile production industry from 2015 to 2018, using neural networks in the first stage and multiple regression in the second stage.

Findings

The findings suggest that digital platforms sponsored by FSPs have a discriminative effect based on implicit BDA on identifying the quality and potential risks of borrowers. The results also show that tailored information utilised by FSPs has a supportive effect based on explicit BDA in helping SMEs obtain financing.

Originality/value

This study contributes to the emergent research on BDA in supply chain management by extending the contextual research on information signalling and platform theory in SCF. Furthermore, it examines the distinctive financing decision models of FSPs and provides a solution that addresses the information deficiency and overload of both lenders and borrowers and plays a certain reference role in alleviating the financing problems of SMEs.

Details

International Journal of Operations & Production Management, vol. 41 no. 4
Type: Research Article
ISSN: 0144-3577

Keywords

Book part
Publication date: 21 October 2019

Rudy Yaksick

The purpose of this chapter is to demonstrate how blockchain technology – which permits the Internet-based exchange of value (digital assets) – enables supply chain finance banks…

Abstract

The purpose of this chapter is to demonstrate how blockchain technology – which permits the Internet-based exchange of value (digital assets) – enables supply chain finance banks to overcome the challenges they face when attempting to create win–win transactions for supply chain participants. Traditionally, buyers and suppliers linked together in a supply chain have conflicting objectives as manifested by a zero-sum payoff structure. Suppliers want their invoices to be paid quickly in order to reduce their need for working capital. In contrast, buyers want to delay payment of invoices as long as possible in order to reduce their need for working capital. In other words, suppliers want a short cash conversion cycle; buyers want a long cash conversion cycle. This conflict is eliminated by the insertion of a financial intermediary (supply chain finance bank) between the buyer and the supplier. The bank eliminates the conflict by: (1) using its balance sheet to decouple the cash conversion cycles of the buyer and supplier; and (2) providing cheaper financing to impatient suppliers and reluctant buyers (since the bank has a higher credit rating than both the supplier and the buyer).

Details

Disruptive Innovation in Business and Finance in the Digital World
Type: Book
ISBN: 978-1-78973-381-5

Keywords

Article
Publication date: 3 August 2023

Simin An, Bo Li, Minxue Wang and Wei Zheng

This paper explores the effectiveness of using blockchain technology to solve financial constraints faced by small- and medium-sized suppliers in a capital-constrained supply chain

Abstract

Purpose

This paper explores the effectiveness of using blockchain technology to solve financial constraints faced by small- and medium-sized suppliers in a capital-constrained supply chain.

Design/methodology/approach

To characterize the impact of blockchain on credit period and enterprise credit level, the study formulates a newsvendor model to analyze a supply chain in which a financially constrained supplier sells products to a financially sound manufacturer, subject to uncertain demand. The study investigates three repayment methods: the benchmark case without blockchain and two blockchain-enabled cases with the hybrid repayment mode and single repayment mode (SRM), respectively. The study derives and compares the equilibria under each repayment method to characterize their impact.

Findings

When the bank interest rate is low and the carbon cap is also low, choosing to implement blockchain technology leads to higher profitability for the manufacturer than not utilizing it. Within the framework of blockchain technology, when comparing the two repayment models, the manufacturer exhibits a preference for SRM. Furthermore, under specific conditions of the bank interest rate, blockchain technology can effectively facilitate consensus among supply chain members in terms of channel selection.

Practical implications

The results derived in this paper provide novel managerial implications to the capital-constrained members in terms of pricing decisions and order quantity under demand uncertainty considering blockchain technology, which transfers the creditor's rights to the bank and shortens the collection time. In addition, blockchain technology enables efficient and intelligent collaborative development of supply chains, which can reduce carbon emissions during the transportation of goods.

Originality/value

Few studies incorporate blockchain technology into supply chain finance, and this paper considers the credit period and capital's time value for a capital-constrained supplier facing the adoption of blockchain technology within a stochastic demand environment.

Details

Industrial Management & Data Systems, vol. 123 no. 10
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 15 November 2022

Qiang Lu, Yang Deng, Beini Liu and Jinliang Chen

As an effective mode to help small and medium enterprises (SMEs) raise working capital, supply chain finance has recently gained extensive attention. The purpose of this paper is…

Abstract

Purpose

As an effective mode to help small and medium enterprises (SMEs) raise working capital, supply chain finance has recently gained extensive attention. The purpose of this paper is to explore the intrinsic mechanism of how both weak and strong ties in the supply chain network impact the supply chain financing performance (SCFP) of SMEs from the perspective of the supply chain network.

Design/methodology/approach

Based on the extended resource-based perspective, this paper proposes a theoretical model to explain the mode in which strong ties and weak ties of SMEs in the supply chain network influence SCFP through both physical distribution flexibility and demand management flexibility. Based on data from 182 manufacturing firms in China, this paper uses multiple regression analysis to test hypotheses.

Findings

The results of this paper indicate that weak ties improve SCFP more effectively than strong ties. Furthermore, both physical distribution flexibility and demand management flexibility exert different mediating roles either between strong ties and SCFP or between weak ties and SCFP. Moreover, the effect of physical distribution flexibility and demand management flexibility on SCFP of SMEs is not reinforced.

Originality/value

This paper highlights the importance to expand supply chain finance research from the perspective of the supply chain network. In particular, this paper explores the poorly understood mediating effect both physical distribution flexibility and demand management flexibility exert on the relationship between network ties and the SCFP of SMEs.

Details

Journal of Business & Industrial Marketing, vol. 38 no. 9
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 9 May 2016

Hua Song, Kangkang Yu, Anirban Ganguly and Rabia Turson

The purpose of this paper is to examine the effect of small and medium enterprises (SMEs)’ supply chain network on influencing credit quality, or more specifically, whether…

3118

Abstract

Purpose

The purpose of this paper is to examine the effect of small and medium enterprises (SMEs)’ supply chain network on influencing credit quality, or more specifically, whether bridging tie (structural network) or strong tie (relational network) of SMEs in the supply chain can improve the availability of equity and debt capital through information sharing.

Design/methodology/approach

A survey was conducted in manufacturing industry in China and 208 valid questionnaires were used to test all the hypotheses. The data were then analyzed by employing partial least squares path modeling.

Findings

The results suggest that both strong tie and bridging tie of SMEs can lead to a positive effect on information sharing in supply chain, which can further enhance the credit quality for SMEs. However, without information sharing, the strong tie has not significant influence on SMEs’ credit quality, while bridging tie can directly impact on credit quality.

Originality/value

Despite their crucial role in sustaining national economies, SMEs are beset by the critical constraint of risk-free financing. Based on a survey, this research finds that the credit quality of SMEs is affected by two important factors: one concerns information sharing in supply chain and the other relates to the attributes of SMEs’ supply chain network. This study implies that a SME may have a financing advantage for better embedding in the supply chain network, but different effects will be experienced according to constraints associated with information asymmetry in the supply chain.

Details

Industrial Management & Data Systems, vol. 116 no. 4
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 13 February 2017

Judith Martin and Erik Hofmann

The purpose of this paper is the analysis of reasons to involve financial service providers (FSPs) in the integrated management of supply chain flows through supply chain finance

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Abstract

Purpose

The purpose of this paper is the analysis of reasons to involve financial service providers (FSPs) in the integrated management of supply chain flows through supply chain finance (SCF) practices. In addition, service requirements are derived for FSPs in order to respond to company needs related to SCF practices.

Design/methodology/approach

The selected methodology represents a multi-method approach. First, a survey with 62 companies from Switzerland and ten expert interviews were applied to analyze company needs. Second, the study was complemented with a review of gray press, online offers and 11 expert interviews on the service offer of FSPs for managing supply chain flows.

Findings

The results derive company needs for an integrated management of supply chain flows. The company needs are matched with available service offer of FSPs. Based on this match quality gaps are identified and service requirements are derived. The results describe initial measures to close the quality gaps.

Research limitations/implications

This research primarily focuses on financial flows related to the working capital of companies thereby neglecting fixed assets.

Practical implications

The results provide companies with a structured process to analyze the value added of FSPs. FSPs can use the results to better match their service offer with company needs.

Originality/value

This research contributes to research on SCF by developing a structured process for analyzing the company needs for SCF practices as well as the value added of FSPs in offering these practices.

Details

Journal of Applied Accounting Research, vol. 18 no. 1
Type: Research Article
ISSN: 0967-5426

Keywords

21 – 30 of over 29000