Abstract
In recent years; financing difficulties have been obsessed small and medium enterprises (SMEs); especially emerging SMEs. Inter-members’ joint financing within a supply chain is one of solutions for SMEs. How about members’ joint financing of inter-supply chains? In order to answer the question, we firstly employ the Stackelberg game to propose three kinds of financing decision models of two cash-constrained supply chains with complementary products. Secondly, we analyze qualitatively these models and find the joint financing decision of the two supply chains is the most optimal one. Lastly, we conduct some numerical simulations not only to illustrate above results but also to find that the larger are cross-price sensitivity coefficients; the higher is the motivation for participants to make joint financing decisions; and the more are profits for them to gain.
Highlights
Joint financing between supply chains, as a kind of inter-supply-chain financing, is an important source of capitals for both supply chains with complementary products. As the both financing concepts about supply chains make clear, a joint financing can exist in a supply chain [66] and in an alliance between two parallel supply chains with complementary products because the production decisions of complementary products can have much effect on each other. For such two supply chains with complementary products, they should consider whether or not to make such a joint financing decision, which will be studied in this paper
‚ We propose financing models by extending financing decision participants from a single supply chain [66] into two parallel supply chains with complementary products
‚ With regard to all decision participants of two parallel supply chains with complementary products, we prove the best financing way for them is to make a joint financing decision
Summary
Chain finance does have an impact on a firm’s capability to adopt sustainable supply chain management practices [1]. As an important management lever for a supply chain, can be used to solve the capital shortage problem and strengthen the competitiveness. ‚ For a supply chain [51], there exist supply chain effects of bankruptcy due to the financing guarantee, but there are enough incentives for the leader enterprises of a supply chain to help other members to get enough loans in order to preserve competition, improving supply chain efficiency and providing support for the exclusivity rule [52,53]. For such two supply chains with complementary products, they should consider whether or not to make such a joint financing decision, which will be studied in this paper
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