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Warehouse receipt-based financing (WRF), an innovative instrument with its structure embedded in the agricultural value chain can potentially address farmers' concerns about timely credit access and accessible remunerative markets. However, studies indicate farmers' exclusion from currently practiced WRF mechanisms across developing countries. Transaction cost and lack of assured remunerative markets post storage are the challenges thwarting farmers' participation. The study explores how these challenges can be addressed by analyzing a case study. The finding will help in coming up with a farmer-inclusive WRF mechanism.

The study uses a case study as an analysis tool. Primary data is gathered through farmers. Descriptive statistics and partial least squares (PLS) approach to structural equation modeling methodology has been adopted for empirical testing of the hypothesis of the study. The study uses SMART PLS 3.0 for analysis of data.

Single window offering of multiple value chain operations and technological intervention in physical handling substantially reduces transaction costs for farmers. Sustained farmers' participation in the case supports this finding. The presence of an assured market (PAM) is found to have a positive and significant relationship with WRF in the case of beneficiary farmers. The PAM is found to have a negative yet significant relationship with WRF in the case of nonbeneficiary farmers. Critical success factors of the entity KisanMitra stated in the case substantiates a farmer-inclusive WRF mechanism.

The study analyzes a case study of specific geography. However, similarities enlisted across developing countries in the introduction section provide a scope of generalization of findings across developing countries. The identified factors for a farmer-inclusive WRF mechanism will enable the governments, policymakers and development institutions to ascertain and align their WRF implementation measures to inculcate and upgrade these factors to the prospective WRF agents. Future studies can explore the replication of farmer-inclusive WRF mechanisms across other geographies. The studies also explores the role of technological interventions in further reducing the transaction cost and suitable policy modifications to encourage replication of the study in other geopgraphical context.

The study on WRF and the methodology adopted is first of its kind to identify factors for a farmer-inclusive WRF mechanism.

Risks resulted from asymmetric information have become crucial barriers for commercial banks to implement supply chain finance (SCF) – mainly the inventory pledge financing (IPF). At the same time, online financial service providers (OFSPs) are emerging as strong competitors in the SCF market. As a result, commercial banks need to update their traditional SCF business models and alleviate their over-dependence on OFSPs.

The authors employ a multi-case-study method to investigate how the Internet of things (IoT) and blockchain technologies can be jointly leveraged to mitigate SCF risks. In-depth interviews were conducted to depict the business models and their novel ecosystem to reinforce traditional banks' ability in SCF services.

From the perspective of information asymmetry, the authors categorize IPF risks into three groups based on the principal-agent theory: collateral, warehousing and liquidity risk. The findings suggest that IoT can primarily improve traditional banks' information acquisition ability, and blockchain can facilitate credible information transformation, enabling banks to acquire knowledge from collaterals. Besides, the e-platform in the new architecture increases banks' involvement in the supply chain and builds a fair network to curtail warehousing risks. The employment of smart contracts and collaborative mechanism ensure process and outcome control in mitigating liquidity risks.

The research contributes to the literature by confirming the role of emerging technologies in reducing information asymmetry risks. Besides, the findings provide valuable insights for practitioners to promote effective practices and approaches in IPF.

The purpose of this paper is to examine the factors influencing Indonesian farmers’ use of the warehouse receipt system (WRS) and their choice of private and public warehouses.

Primary data were collected through questionnaires administered to 500 farmers in two districts, Subang and Cianjur, in West Java Province in Indonesia. Binary logit regression was employed to examine the factors influencing farmers’ use of the WRS. Binary and bivariate probit regressions were employed to determine the factors influencing farmers’ choice of private and public warehouses.

The empirical results of the binary logit regression revealed that age, land ownership, selling price, the use of the warehouse receipt as collateral security and the availability of transportation facility positively influenced farmers’ use of the WRS, whereas education, income, farm profit and participation in farmers’ group negatively influenced farmers’ use of the WRS. The results of the binary probit regressions revealed that profit, availability of insurance and processing facility positively influenced the farmers’ decision to use the private WRS, whereas education, production, selling price and distance from the farm to the warehouse negatively influenced farmers’ decision to use the private WRS. Age, education, selling price and distance from the farm to the warehouse positively influenced the farmers’ decision to use the public WRS, whereas production and availability of processing facility negatively influenced the decision of farmers to use the public WRS.

This study highlights the importance of education and government assistance regarding the provision of facilities and price indemnified insurance for successful implementation of the WRS.

This study provides an empirical contribution to the existing literature on the development of WRS in Indonesia. In terms of methods of analysis, previous studies used purely qualitative and descriptive methods, whereas this study employed econometric techniques (i.e. binary logit, binary probit and bivariate probit regressions) to examine the WRS in Indonesia. In addition, whereas previous studies explored the WRS in general, this study investigated the farmers’ use of the public and private warehouses in addition to exploring the WRS in general. Finally, the finding that the average annual profit of non-users was significantly higher than that of the users of the WRS is striking, and this could be attributed to the current challenges of the implementation of the WRS, including high transportation and warehouse rental costs.

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).

The purpose of this paper is to synthesize lessons from the agricultural value chain models and their associated financing mechanisms in China and India as to provide policy recommendations on how best to facilitate development of efficient and inclusive value chains.

The paper builds on a review of the existing literature on agricultural value chains and their financing mechanisms, and draws lessons from it for strengthening interface between product and financial markets in order to enable smallholders capture benefits of the value addition.

From the comparative review of value chain financing mechanisms and current policy contexts the authors find dominance of internal financing of value chains (in terms of provision of inputs, technology and services) in both the countries. Value chain finance from commercial banks and other financial institutions is limited and mainly through tripartite agreements among the financing institutions, lead firms and farmers.

The lessons drawn from various value chain models and their financing mechanisms provide feedback to financial institutions and policymakers to take measures to strengthen value chain finance in smallholder agriculture.

The paper undertakes a rigorous review of the existing value chain models and their financing mechanisms in light of the most recent research on emerging innovations and development strategies, in order to glean key lessons for policy recommendations on strengthening linkages between financial and product markets.

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.

This is a multiple-case study of four Fintech companies using blockchain technology to promote the performance of supply chain operations and financing.

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.

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.

The global demand for food is expected to increase by 60 percent by 2050 when the world’s population reaches 9.1 billion. To meet this challenge significant investment in the agricultural sector is required to embrace innovative financing mechanisms that can benefit sustainable agricultural development, food security and nutrition. The purpose of this paper is to analyze the agricultural value chain (AVC) financing approaches and tools in India. It presents a proper understanding of the different case studies of Indian AVC financing models and related instruments. It also offers some useful recommendations to improve their efficiency.

The authors employ the multiple case studies approach to research which allows for a purposive sample and the potential for generalizability of findings. This provides a more rigorous and inclusive approach than a single case study research due to the triangulation of evidence. Subsequently, the authors offer an explicit description of AVC financing models. In the next phase, a thorough assessment of these models is made. Finally, the authors formulate some useful policy recommendations based on the findings of the analysis.

There is a need to review the value chain models that exist in the context of – lead actors, business model and sustainability strategy. Determining actual and critical points of finance such as the current flows of funds and their sources of financing, what is needed and in what point in time is significant to enhance the effectiveness of the models. Further, there is a need to analyze and compare financing options such as their relative strengths, risks and costs of financing for each level of participant in the chain. The authors observe that rather than investing in one component of the chain, the financial institution can grow expertise in the chain, share this knowledge and provide financing to support services. This not only benefits clients, but also expands lending opportunities while lowering the risks.

The study primarily focusses on AVC financing approaches and tools in India and attempts to analyze the inadequacies in the value chain models. The case study approach is adopted as the accurate data on value chain financing are not available for the analysis.

The study has come out with the following policy recommendations: the governments (union government as well as state governments) – in partnership with the private sector need to spearhead and develop measures aimed at making the operation of the value chain efficient, fair, profitable and sustainable; governments have to focus on creating an enabling policy and regulatory environment and, providing the necessary support services in order to attract more investments. These will lower the transaction costs, facilitate the smooth flow of finance along the chain and ultimately increase value-added; financing for processing and marketing is particularly crucial for growth and expansion of the chain; bank finance should not be limited to short-term production loans, but also include big-ticket loans with longer maturities to finance investments in farming equipment and machinery, transportation, storage, mills and other processing/post-harvest facilities.

This study is the first of its kind as it is based on a multiple case studies approach in understanding and analyzing the efficiency and effectiveness of AVC financing models in India by evaluating eight of such models. Besides, it offers quite useful policy recommendations to improve their efficiency.

Warehouse receipt system (WRS) schemes aim to revitalize the market of cash crops, particularly those of the smallholder farmers. However, the existing government schemes for the smallholder farmers have not been much successful on account of issues related with transparency and trust deficit, thereby limiting farmers' access to credit for their farming activities as channeled via the formal financial institutions. Conceding that blockchain is an emerging technology, this study aims to theoretically posit the potential to optimize WRS in real time to bolster farmers' trust and privacy.

The research bases itself on the design science research (DSR) approach. Using the DSR approach backed by the literature review and evolutionary prototyping, a blockchain-based WRS has been advanced in the study.

This study provides a design of a digital WRS, which serves as a proof of concept of blockchain technology (BCT) applications in improving transparency in the WRS in the agricultural sector. The findings from this study present the possibility of leveraging blockchain smart contracts to improve the linkages between the WRS stakeholders to promote trust and transparency that would eventually unlock the potentials of WRS schemes. Furthermore, the findings inform decision-makers and practitioners to prioritize the emerging technologies in revamping the classical WRS.

The study leaves research pointers for implementing BCT in agricultural supply chain and furthering the findings from the present study with an empirical agenda.

Whilst research on the BCT applications across myriad sectors abounds, research on the BCT applications to address societal needs is conspicuously limited. Furthermore, research on the practical implementation of the BCT in real-world scenarios is few and far between. The present study seeks to plug these gaps by underlining the application and utility of blockchain in WRS. The study makes a significant contribution to the theory and practice of the agrarian supply chain management, specifically the WRS, by invoking design knowledge obtained through an iterative design process besides serving as an edifice for the integration of emerging technologies, notably BCT in the agricultural sector.

This study proposes targeted modernization of the Department of Defense (DoD's) Joint Forces Ammunition Logistics information system by implementing the optimized innovative information technology open architecture design and integrating Radio Frequency Identification Device data technologies and real-time optimization and control mechanisms as the critical technology components of the solution. The innovative information technology, which pursues the focused logistics, will be deployed in 36 months at the estimated cost of $568 million in constant dollars. We estimate that the Systems, Applications, Products (SAP)-based enterprise integration solution that the Army currently pursues will cost another $1.5 billion through the year 2014; however, it is unlikely to deliver the intended technical capabilities.