Predicting firm performance through supply chain finance: a moderated and mediated model link

Abstract

ABSTRACTSmall and medium enterprises (SMEs) are currently facing vulnerability in their supply chains, which has become the most pressing concern for all the SMEs. In this paper, we examine how supply chain finance (SCF) as a risk mitigation strategy directly or indirectly influences firm performance (FP). Moreover, this study also pursues to investigate the role of supply chain visibility (SCV) as moderator and supply chain risk (SCR) as a mediator in the relationship between SCF and FP. Data was gathered from 330 textile sector SMEs using a survey approach. AMOS was used to run the structural equation modelling for validating the proposed model and structural relationships. The results highlight that SCF significantly reduces the SCR which subsequently enhance the FP. While SCV moderates the relationship between SCF and SCR. SCR significantly mediates the relationship between SCF and FP. Finally, the study discussion and implications are discussed followed future research directions.