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Open Access
Article
Publication date: 23 November 2020

Peng Xie, Qiang Chen, Ping Qu, Jianping Fan and Zhijun Tang

This paper aims to systematically expound the theory and development background of supply chain finance and blockchain, design a railway freight supply chain financial…

2317

Abstract

Purpose

This paper aims to systematically expound the theory and development background of supply chain finance and blockchain, design a railway freight supply chain financial platform based on blockchain, determine the risk management system and business support system of supply chain finance business and analyze the value generated by the combination of supply chain finance business and blockchain.

Design/methodology/approach

Investigation and research method; Prototype method; Model method; Value analysis.

Findings

The business model integrating supply chain finance and blockchain technology will bring great changes to freight industry. The development of supply chain finance is beneficial to the healthy development of the core participants of railway freight transport business and its upstream and downstream ecosystems. It links commerce, logistics, warehousing and financial services together and builds an industry-integrated ecological service platform through information technology platform and supporting system, taking data as the basis and combining information technology such as blockchain as innovative means.

Originality/value

This paper will provide important reference value for related research. This paper innovatively designs the supply chain financial platform of freight transportation industry-integrating blockchain technology and analyzes its business model, technical system, risk management and control system and value system in detail, which will provide technical support for the innovative reform of freight information technology and realize the stable and high-speed development of freight logistics informationization.

Details

Smart and Resilient Transportation, vol. 2 no. 2
Type: Research Article
ISSN: 2632-0487

Keywords

Article
Publication date: 17 February 2022

Xiaodong Xia, Weida Chen and Biyu Liu

The purpose of this paper is to investigate the optimal production and financing strategies for the closed-loop supply chain (CLSC) composed of a capital-constrained…

Abstract

Purpose

The purpose of this paper is to investigate the optimal production and financing strategies for the closed-loop supply chain (CLSC) composed of a capital-constrained original equipment manufacturer (OEM) and a risk-averse authorized remanufacturer (RM).

Design/methodology/approach

The authors formulate four models with different scenarios, namely, the OEM has sufficient capital; the OEM has limited capital without financing; the OEM adopts debt financing strategy; and the OEM adopts equity financing strategy. The equilibrium solutions of each scenario are obtained by backward induction method, the influences of risk aversion coefficient on the equilibrium solutions are examined and the OEM's optimal financing strategy is found by comparison analysis.

Findings

When the OEM's initial capital is limited and the equity dividend ratio is less than a certain threshold, the equity financing strategy is more advantageous for the OEM. However, if the OEM's initial capital is extremely scarce and the dividend proportion is large, the OEM prefers the debt financing strategy. When considering financing, consumer surplus always decreases as the risk aversion factor increases; the debt financing strategy is more environmentally friendly compared with the equity financing strategy. Only the debt financing strategy can make both members in the CLSC achieve a win-win situation in a certain region when the dividend ratio is sufficiently large.

Research limitations/implications

It will be more fascinating if the model extends to such a case that the production operation situation in the CLSC composed of multiple OEMs in multiple periods. Furthermore, the remanufacturer's risk-averse information is asymmetry may be more realistic in our daily life.

Originality/value

There are three main differences from the existing research. One is that the remanufacturer's risk aversion originates from the uncertain remanufacturing cost instead of the uncertain market demand. Another is that the boundary conditions of the OEM prefer to adopt debt financing is obtained through the envelope theorem with Lagrange multiplier method. Last but not the least, this paper provides a good theoretical reference and practical guidance for the OEM to make the rational financing strategy selection in face of different degree of capital scarcity in the CLSC system. The value of the three aspects provides a theoretical basis for the optimal operation decisions of capital-constrained manufacturer considering the remanufacturer's risk aversion in the CLSC operation system.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 1 June 2021

Qiang Lu, Jinliang Chen, Hua Song and Xiangyu Zhou

The purpose of this study is to examine how cloud computing assimilation reduces supply chain financing (SCF) risks of small and medium enterprises (SMEs). This study also…

Abstract

Purpose

The purpose of this study is to examine how cloud computing assimilation reduces supply chain financing (SCF) risks of small and medium enterprises (SMEs). This study also investigated the mediating roles of internal and external supply chain integration between cloud computing assimilation and the SCF risks of SMEs, as well as the moderating role of environmental competitiveness.

Design/methodology/approach

Data was collected from surveys of SMEs located in China. Multiple regression analysis was used to validate the proposed theoretical model and research hypotheses.

Findings

The findings show that cloud computing assimilation could reduce the SCF risks of SMEs directly. The results also indicate that both internal and external supply chain integration mediate the relationship between cloud computing assimilation and SCF risks. Furthermore, environmental competitiveness inhibits the effects of cloud computing assimilation on SCF risks.

Originality/value

To our best knowledge, this is the preliminary study to explore the role of cloud computing assimilation in reducing the SCF risks of SMEs. Also, this study attempted to investigate the process by which cloud computing assimilation affects the SCF risks of SMEs.

Details

Journal of Enterprise Information Management, vol. 35 no. 6
Type: Research Article
ISSN: 1741-0398

Keywords

Article
Publication date: 21 February 2020

Qiang Lu, Beini Liu and Hua Song

This paper aims to explore how innovation capability and market response capability of small and medium-size enterprises (SMEs) affect their supply chain financing

1139

Abstract

Purpose

This paper aims to explore how innovation capability and market response capability of small and medium-size enterprises (SMEs) affect their supply chain financing performance (SCFP) through supply chain financing solutions (SCFS) adoption. At the same time, the mechanism by which supply chain financing reduces information asymmetry before (ex-ante) and after (ex-post) SCFS adoption to promote SCFP is also inquired.

Design/methodology/approach

Drawing on enterprise competence theory, this paper proposes a theoretical model and tests it using survey data from a sample of 218 SMEs in China. Multiple regression analysis is employed to test the hypothesis.

Findings

The study finds that: (1) SMEs' innovation capability and market response capability positively affect SCFP. (2) SMEs' innovation capability and market response capability exert significantly positive effects on SCFS adoption. (3) SCFS adoption plays a mediating role between SME capabilities and SCFP. (4) Supply chain integration (SCI) and information technology application have no moderating effects on the relationship between SME capabilities and SCFS adoption. Finally, (5) SCI and information technology application have positive moderating effects on the relationship between SCFS adoption and SCFP.

Originality/value

Based on enterprise competence theory, this study sheds light on the internal mechanism through which SMEs' capabilities affect SCFP by introducing SCFS adoption and explores the role of situational factors in SCF in reducing ex-ante and ex-post information asymmetry. This study provides an innovative theoretical perspective on supply chain financing and enriches the existing research.

Details

Industrial Management & Data Systems, vol. 120 no. 4
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 6 April 2021

Hugo K.S. Lam and Yuanzhu Zhan

This study empirically investigates how supply chain finance (SCF) initiatives together with different firm capabilities and resources (i.e. information technology (IT…

1072

Abstract

Purpose

This study empirically investigates how supply chain finance (SCF) initiatives together with different firm capabilities and resources (i.e. information technology (IT) capability, operational slack and political connections) affect the financial risk of service providers.

Design/methodology/approach

This study collects secondary longitudinal data to test for a direct impact of SCF initiatives on service providers' financial risk. It further investigates the moderating effects of the service provider's IT capability, operational slack and political connections. Additional tests and analytical strategies are performed to ensure the robustness of the results.

Findings

The findings indicate that SCF initiatives help service providers mitigate financial risk. The risk reduction is greater for service providers with higher IT capability, operational slack and political connections, but the last factor applies only to multinational corporations, not domestic companies.

Research limitations/implications

The data used in this research is limited to SCF service providers publicly listed in the United States, which may restrict the generalisability of the findings. Nonetheless, the research urges scholars to focus more on the financial risk implications of SCF in different market contexts.

Practical implications

This study encourages service providers to embrace the power of SCF initiatives for mitigating financial risk and allows them to evaluate their SCF investments in light of different firm capabilities and resources.

Originality/value

This is the first study investigating the impacts of SCF initiatives and various firm capabilities and resources on service providers' financial risk. The empirical findings provide important implications for future research and practices.

Details

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

Keywords

Article
Publication date: 25 January 2021

Jean-Noël Beka Be Nguema, Gongbing Bi, Zulqurnain Ali, Aqsa Mehreen, Christophe Rukundo and Yangqian Ke

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…

1065

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.

Details

Journal of Business & Industrial Marketing, vol. 36 no. 5
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 16 August 2021

Zhen Bi, Feng Yang and Jean-Noël Beka Be Nguema

Little is known about the effects of supply chain finance (SCF) adoption on organizational performance (OP). This study aims to address this relevant research gap, and…

Abstract

Purpose

Little is known about the effects of supply chain finance (SCF) adoption on organizational performance (OP). This study aims to address this relevant research gap, and hence draws on the dynamic capability view of the organization under the contingent effect of environmental dynamism (ED) and supply chain risk (SCR) to investigate the effects of SCF adoption on OP.

Design/methodology/approach

A conceptual framework is developed and then tested using survey with data collected from a cross section of 217 organizations in China.

Findings

The findings show that SCF significantly mitigates the SCR, which therefore has a strong positive effect on OP (e.g. cost performance and operational performance). Moreover, the findings indicate that when ED is high, then the relationship between SCF and SCR is stronger, whereas when ED is low, the relationship between SCF and SCR is weak. Further, SCR mediates the relationship between SCF and OP. Hypothesis regarding the moderating effect of ED on the paths joining SCF and SCR was also confirmed. SCR has a strong negative effect on OP. However, hypothesis regarding the effect of ED on SCR was rejected.

Research limitations/implications

This paper has the following limitations. First, the authors conducted the study with organizations in China, which may result in low generalizability. Moreover, the authors used survey method and cross-sectional data design in this paper, which may cause the potential issue of common method bias. However, this research provided some significant theoretical and managerial implications for organizations, practitioners and researchers, while exploring different factors such SCF, SCR and ED, and their effect on organizational output.

Practical implications

From the managerial perspective, this study provides some relevant new insights to the supply chain managers of organizations. First, the findings of present study guide the organization executives to mitigate their organizations’ risk through risk mitigation strategies such as SCF; optimize their liquidity and working capital while getting the credit at best cost from lenders; and mitigate vulnerability. Second, organizations should adopt vulnerability strategies for improving their capability to respond promptly and cost-effectively toward uncertainties. Third, the perfect identification of factors leading to the adoption of SCF and improving OP are of incredible attractiveness for executives to discover the relevant practice of SCF. Fourth, the results also offer an opportunity to organizations and practitioners, a decision-making approach, to manage which mitigation scheme to be adopted to aid the supply chain practices of mitigation. Moreover, SCF emphasizes that the organization managers’ expand their overall supply chain by getting easy credit and reducing the risk and produce higher organizational productivity. Further, this paper offers a completive advantage for both buyers and suppliers to strengthen their relationships while collaborating with each other. The supply chain executives may explore the level of relationship amongst SCF adoption and their effects on organizational productivity. Therefore, SCF provides equal competitive advantage to both main partners of the supply chain to mitigate the overall risks and improve their competiveness.

Originality/value

This research fulfilled the research gap in operations management, strategic management, marketing and supply chain management by exploring the effects of SCF adoption as risk mitigation strategy but also as an instrument which can aid organizational to carry out their performance.

Details

Journal of Business & Industrial Marketing, vol. 37 no. 3
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 24 March 2021

Jean-Noël Beka Be Nguema, Gongbing Bi, Temidayo O. Akenroye and Jamal El Baz

This paper aims to draw on the dynamic capabilities approach and aims to empirically investigate the impact of supply chain finance (SCF) on firm performance (e.g…

1025

Abstract

Purpose

This paper aims to draw on the dynamic capabilities approach and aims to empirically investigate the impact of supply chain finance (SCF) on firm performance (e.g. operational risk and operational performance), the critical effect of environmental dynamism (ED) as moderator and supply chain risk (SCR) and a mediator in the relationship between SCF and organizational performance (OP).

Design/methodology/approach

This study is based on empirical data collected from a survey of 210 companies and their supply chains in mainland China. Structural equation modeling is used to test the proposed relationships.

Findings

The findings show that SCF significantly mitigates the SCR, which subsequently has a significant positive effect on OP (e.g. operational risk and operational performance). The findings also show that when ED is high, the relationship between SCF and SCR is stronger and vice versa. Moreover, SCR mediates the relationship between SCF and OP. The hypothesis regarding the moderating effect of ED on the paths joining SCF and SCR was also supported. SCR has a significant negative effect on OP. However, the hypothesis regarding the effect of ED on SCR was not supported.

Research limitations/implications

This study has some limitations. First, this paper conducted the research with Chinese organizations. This may result in low generalizability in other contexts. In addition, this paper used the survey method and cross-sectional data design in this study, which may generate the potential issue of common method bias. However, the findings of this study will help organizations across China and other emerging economies to adopt SCF as a secure financing mechanism to enhance working capital and mitigate risk. In addition, the paper provides some new managerial insights for decision-makers in organizations, while exploring different factors such as SCF, SCR and ED and their effect on the organization.

Originality/value

This study has greatly developed a general SCF adoption model that helps to guide empirical research investigating the critical impact of SCF on firm performance.

Details

Supply Chain Management: An International Journal, vol. 27 no. 1
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 16 February 2022

Yaqin Yuan and Wei Li

This study aims to investigate the impact of supply chain risk (SCR) information processing capabilities (e.g. SCR information sharing and SCR information analysis) and…

Abstract

Purpose

This study aims to investigate the impact of supply chain risk (SCR) information processing capabilities (e.g. SCR information sharing and SCR information analysis) and supply chain finance (SCF) on supply chain resilience, as well as the moderating effect of environmental uncertainty in the relationship between SCF and supply chain resilience.

Design/methodology/approach

This paper proposes a theoretical model grounded on the information processing theory. Data collected from 216 Chinese firms are used to test the theoretical model by employing structural equation modelling.

Findings

The findings reveal that SCR information processing capabilities have a significant impact on both SCF and supply chain resilience. SCF plays a partial mediating role in the relationship between SCR information processing capabilities and supply chain resilience. In addition, environmental uncertainty moderates the relationship between SCF and supply chain resilience.

Originality/value

First, this paper enriches the knowledge of how information processing capability affects SCF and supply chain resilience as the study considers the more granular SCR information rather than general information that has been discussed in previous studies. Second, this is one of the first papers to establish the relationship between SCF and supply chain resilience in emerging economies. Next, the paper extends the theoretical framework of the antecedents and consequences of SCF. Moreover, the study further facilitates the understanding of the role of the external environment in SCR and SCF management.

Details

Journal of Enterprise Information Management, vol. 35 no. 6
Type: Research Article
ISSN: 1741-0398

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

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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

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