The digital economy and supply chain finance: toward performance booster

Abstract

ABSTRACT In global intense rivalry and increasing pressure to digital technology innovation, firms are resorting to the rise of digital economy to achieve supply chain finance to acquire capital support. This study investigated the role of digital economy on supply chain financing performance (SCFP) and designed the customised recipes for high and low level SCFP. Collecting a sample of 3384 firms from 2017 to 2022, this study used the regressive analysis and fuzzy-set qualitative comparative analysis (fsQCA) to test hypotheses. We find that the micro-level empirical evidence on digital economy in SCFP does exist – namely, the rise of digital economy not only has a beneficial effect on SCFP, but also serves as a pivotal ingredient in recipes for attaining SCFP. For instance, a remarkable display of high-level SCFP unequivocally signifies a substantial appetite for the digital economy, whereas low-level SCFP remains comparatively subdued. Additionally, digital economy cannot eliminate the gap in SCF availability owing to heterogeneity in economic levels and property rights. The results give valuable insights to supply chain management in SCF-related decision-making and provide application recommendations for managers by constructing a strategic initiative that effectively responds to the multifaceted opportunities and challenges presented by digital technology.