Supply Chain Finance Research Articles

Blockchain-Driven Food Supply Chains: A Systematic Review for Unexplored Opportunities

This systematic review critically examines the diverse applications of Blockchain technology in the food supply chain and identifies areas where its potential remains underutilized. By analysing 60 Blockchain-based frameworks, the study highlights the most frequently employed drivers such as transparency, traceability, and security within food supply chains. Additionally, underexplored applications such as food donation and redistribution, supply chain financing, animal welfare, food waste management, and data analysis are identified, revealing opportunities for further innovation. The research employed NVivo 14 to analyze the extent of Blockchain’s implementation in various food supply chain drivers, and the findings informed the development of a more diverse framework for Blockchain integration. Key insights demonstrate Blockchain’s transformative potential, particularly in enhancing data integrity, trust, and operational efficiency through its immutable ledger and smart contracts, which streamline transactions, cut administrative costs, and reduce fraud. In terms of sustainability and safety, Blockchain improves traceability, accelerates safety responses, promotes environmental sustainability by tracking resource usage, and enhances humanitarian efforts with transparent, efficient resource distribution. Additionally, Blockchain facilitates food waste reduction by optimizing inventory and distribution, while ensuring surplus food reaches those in need. The study concludes by offering a roadmap for future research, pointing toward untapped dimensions of Blockchain’s application in food traceability, sustainable supply chain management, and environmental & social impact. While the review provides a comprehensive understanding of Blockchain’s current usage in food supply chains, the scope is limited by the systematic review process and specific inclusion criteria. This study serves as a foundation for exploring Blockchain’s broader potential in shaping the future of food supply chains.

Research on the Dilemmas and Strategies of Digital Transformation in Supply Chain Finance for Commercial Banks

With the rapid development of digital technology, digital transformation in supply chain finance has become a crucial avenue for commercial banks to enhance business efficiency and competitiveness. However, this process faces various challenges related to technology, organization, and regulation. This paper aims to explore the major dilemmas encountered by commercial banks during their digital transformation in supply chain finance and propose corresponding strategies. By analyzing the current state of digital transformation, identifying common issues through data analysis, and addressing challenges related to technology, organization, and regulation, this paper presents improvement measures. These strategies include technological innovation, organizational culture adjustment, and regulatory and policy adaptation. The research results provide practical references and theoretical support for commercial banks undergoing digital transformation in supply chain finance and are significant for advancing the digitalization of the banking industry.

Digital Transformation, Supply Chain Finance, and Enterprise Innovation

This study uses Chinese A-share listed companies in Shanghai and Shenzhen from 2007 to 2022 as samples to explore the joint impact of digital transformation (DT) and supply chain finance (SCF) on corporate innovation. Results reveal that DT can significantly improve enterprise innovation while promoting the improvement of innovation quantity and quality, with research and development investment acting as a mediating factor. This study's analysis of the impact of SCF reveals that SCF can also promote enterprise innovation by improving synergies and serving as a substitute for DT.

Supply Chain Finance: A Potential Tool for Economic Prosperity in African Countries

Supply chain finance (SCF) has emerged as a pivotal tool to encourage economic prosperity, especially in African regions where Small and Medium Enterprises (SMEs) often face significant capital shortages. Small-sized businesses usually struggle to fulfill client’s demands or honor a contract with bigger firms. That is a fact in countries all around the globe, however, this condition is considered more severe in African countries. African countries face challenges in managing global supply chain chains due to government instability, corruption, limited technology use, and low education levels. With the rise of globalization, it has become ever more crucial to transform and stabilize supply chain management in the region. Supply chain finance (SCF) analyzes capital flows in a supply chain, aiming to reduce financing costs and increase efficiency, which has been an overlooked area for a long time. This research was conducted to understand the potential SCF holds regarding improving the economy in African countries.

Analysis of the foreign direct investment, oil palm expansion, and food security in Indonesia: Sumatra and Kalimantan case studies

The continuing oil palm expansion on food security has prompted fierce debate. On one side, analysts argue that local community incorporation in the oil palm sector can increase food purchasing in the market. However, the expansion has also brought unprecedented consequences of losing highly nutritious food due to forest conversions. This study aims to analyze oil palm expansion and local food security in various regions in Indonesia by tackling the following questions: (a) Which factors influence palm oil expansion, and does foreign investment play a role? (b) How does palm oil expansion affect food security in Indonesia? Socioeconomic methods have been applied in this study, including a systematic literature review and qualitative interviews with key stakeholders from various domestic and international organizations. These two methods help us triangulate the academic literature findings with real-world situations as perceived by the actors in the related field. Results indicate that, firstly, foreign investors have not only made a direct investment to facilitate oil palm expansion, but also indirect financial intermediaries are held without holding financial equities to upstream oil palm companies (e.g., supply chain financing contracts, channeling using local financial institutions such as credit union). Secondly, while large corporations asserted monoculture oil palm expansions, some smallholding farmers use mixed cropland expansion to share food and oil palm crops in their own smallholding terms. With the oil palm expansion, farmers can secure a cash flow from palm oil, but an unintended outcome is less nutrition diversification, and often because of the distance to markets, some commodities are favored over a more diverse diet. The outcomes of oil palm development vary and are multifold, as some stakeholders report that some studies show improving cash flows at the farm level, but other studies insist that food insecurity still prevails.

Affect of Fintech-Enabled Supply Chain Finance on Corporate Innovation

Affect of Fintech-Enabled Supply Chain Finance on Corporate Innovation

Supply chain digitalization and firms' green innovation: Evidence from a pilot program

Green innovation is essential for realizing environmental sustainability and achieving long-term ecological balance. This paper investigates the influence of supply chain digitalization on firms' green innovation in the manufacturing industry. China's 2018 Supply Chain Innovation and Application Pilot program as a quasi-natural experiment, we employ a difference-in-differences (DID) estimation approach to reach the following findings: (1) supply chain digitalization significantly enhances the quantity and quality of enterprise green innovation, with a more substantial impact on quality. (2) supply chain financing capacity and firm environmental awareness play a partial mediating role in the relationship supply chain digitalization and the quality and quantity of corporate green innovation. (3) the heterogeneity analysis reveals that the impact of supply chain digitalization on green innovation is notably heightened in firms with managers who have overseas experience, weak internal controls, and poor regional supply chain environments. This study enriches the theoretical understanding of enterprise green innovation from the perspective of supply chain digitalization, providing a theoretical basis and practical insights for green innovation practices in enterprises.

The Impact of Supply Chain Finance on the Investment Efficiency of Publicly Listed Companies in China Based on Sustainable Development

The development and utilization of supply chain finance play a pivotal role in both enhancing financial structures and delivering substantial support for the sustainable progress of the real economy. This assistance is essential for promoting high-quality economic growth and ensuring stable, long-term development. This study empirically examines the effects of supply chain finance on investment efficiency, exploring the underlying mechanisms involved. Additionally, it assesses whether financing constraints and information asymmetry serve as mediating variables in the relationship between supply chain finance and investment efficiency among enterprises. The analysis is based on data from publicly listed companies in China covering the period from 2013 to 2022. The results indicate that supply chain finance effectively addresses both overinvestment and underinvestment issues, leading to a notable improvement in overall investment efficiency. Utilizing a two-way fixed effects model to analyze the role of financing constraints and information asymmetry as mediating variables, the study demonstrates that both factors significantly mediate the relationship between supply chain finance and investment efficiency within enterprises. Supply chain finance improves investment efficiency by mitigating financing constraints and lessening information asymmetry between enterprises and external stakeholders. The heterogeneity analysis reveals that the positive impact of supply chain finance on investment efficiency is notably greater in non-state-owned enterprises and in regions with more advanced development.

Application of edge computing and IoT technology in supply chain finance

This study proposes an IoT data management framework based on blockchain and edge computing and conducts detailed simulation experiment design and performance evaluation for the field of supply chain finance. Previous methods often struggled with high latency, limited scalability, and inadequate risk management, and to address these issues, the experimental platform includes traditional centralized systems, distributed systems, blockchain-based systems, and edge computing + blockchain systems. By monitoring indicators such as data processing delay, data transmission delay, data retrieval time, system throughput, and data integrity of each platform, and introducing evaluation formulas for credit risk, operational risk, and market risk, the performance of different systems in processing supply chain financial data is comprehensively analyzed. The experimental results show that the edge computing + blockchain system performs well in data processing efficiency, security, real-time, and system throughput, especially under high load conditions. Our market risk value is reduced to 0.015. This framework improves the efficiency and security of data transmission and effectively reduces credit risk and operational risk, providing an efficient and reliable solution for data management in supply chain finance.

Supply chain finance on corporate debt financing behavior under uncertainty

At present, the world is undergoing a major change that has not been seen in a century. How to deal with the increase in environmental uncertainty has become an important problem facing the high-quality development of Chinese enterprises. Chinese enterprises generally face financing constraints, and weak debt financing channels hinder the process of high-quality development of enterprises. How to improve debt financing capabilities has become a practical problem that Chinese enterprises urgently need to solve in response to the increase in environmental uncertainty. This paper first introduces the concept, characteristics and common patterns of supply chain finance , and also explains the definition of uncertainty environment and its impact on corporate operations and financing. By systematically combing through relevant domestic and foreign literature, this paper summarizes the results of existing research on supply chain finance, uncertainty environment and corporate debt financing behavior, laying a theoretical foundation for subsequent analysis. Secondly, this paper demonstrates the specific application of supply chain finance in an uncertain environment and its impact on corporate debt financing behavior through case analysis. By analyzing the success factors of these cases, such as risk management, support from financial institutions and technological innovation, the application value of supply chain finance in an uncertain environment is revealed. It is hoped that theoretical support and practical guidance will be provided for policymakers, financial institutions and enterprises to promote the development of supply chain finance and promote sound financing of enterprises.

Application of Human-Computer Interactive Modern Financial Technology in Agricultural Supply Chain Finance Based on Artificial Intelligence Powered CAD

Application of Human-Computer Interactive Modern Financial Technology in Agricultural Supply Chain Finance Based on Artificial Intelligence Powered CAD

Supply Chain Finance and profitability of SMEs in China: the moderating and mediating effect of finance constraint and the moderating effect of risk management

This study investigates the influence of SCF on the profitability of SMEs in China, considering the mediating role of financial constraints and the moderating effects of financial constraints and risk management. Through a comprehensive analysis of 86 SMEs, employing multiple regression models and SEM, the research establishes a significant positive relationship between SCF utilization and SME profitability, as measured by ROA. The findings reveal that financial constraints mediate this relationship, suggesting that SCF alleviates financial pressures, thereby enhancing profitability. Additionally, the study demonstrates that both the degree of financial constraints and the capability for risk management exert moderating effects on the SCF-ROA link, indicating that the benefits of SCF are more pronounced under greater financial challenges and with stronger risk management practices. The constructed SEM model validates all hypotheses, illustrating that SCF positively impacts profitability through direct effects and by reducing financial constraints. The model fit indices confirm the high level of model fit, supporting the theoretical and practical implications of the study. The research contributes to the literature by enriching theories related to supply chain finance, SME development, financial constraints, and risk management. It also provides actionable insights for Chinese SMEs in optimizing financing strategies and risk management, and offers a basis for policymakers to improve support policies. The study acknowledges limitations in sample size and scope, suggesting avenues for future research to expand the sample and explore non-financial factors affecting the effectiveness of SCF.

Research on the Development and Influence of Internet Supply Chain Finance on Enterprises

In todays digital era, the evolution of internet supply chain finance presents trans-formative opportunities and challenges for enterprises worldwide. This research explores the development and influence of Internet supply chain finance on enterprises, examining its impact on financial management, operational efficiency, and strategic competitiveness within supply chain networks. The study delves into the growing adoption of Internet supply chain finance solutions by enterprises seeking to optimize working capital, streamline transaction processes, and enhance collaboration with suppliers and partners. As digital technologies reshape traditional finance practices, understanding the implication of Internet supply chain finance becomes imperative for businesses navigating complex global supply chains. A comprehensive literature review synthesizes existing knowledge on internet supply chain finance. Preliminary findings suggest that Internet SCF offers significant advantages to enterprises, including improved liquidity management, reduced transaction costs, and enhanced supply chain resilience. However, challenges such as personal security risks and integration complexities underscore the need for strategic planning and technological readiness. By elucidating the development and influence of internet SCF on enterprises for practitioners, policymakers, and scholars in the field of supply chain finance and digital transformation.

A Case Study on the Innovative Development of Digital Supply Chain Finance Based on MYbank in China

Small and medium-sized enterprises (SMEs) play a critical role in promoting the development of China’s real economy and improving national productivity, but their financing still faces challenges. In recent years, supply chain finance (SCF) has become one of the most important solutions to SMEs’ financing difficulties. Promoting the digital and innovative development of SCF can better meet the financing needs of SMEs. This study is based on a case study of Zhejiang MYbank Co., Ltd. (MYbank) in Hangzhou, China, which is a representative institution of digital supply chain finance development in China and committed to realizing the digital innovation development of SCF. Based on MYbank’s financial index data from 2018 to 2022, the implementation effect of MYbank’s digital supply chain finance is quantitatively analyzed from the perspectives of SMEs and MYbank. The main findings are as follows.(1) In the practice of digital supply chain finance, MYbank implements the new concepts of SCF decentralization and full coverage of supply chain links while enhancing the sustainability of SCF. (2) For SMEs, MYbank’s digital supply chain finance development has led to an increase in the financing scale and financing availability of SMEs. (3) The analysis of MYbank’s comprehensive benefits shows that the digital innovation development of SCF effectively increased the overall economic value of the enterprise during the period of 2018–2022. Based on these findings, this study provides implications for commercial banks and other financial institutions to develop digital supply chain finance.

Credit risk contagion of supply chain finance: An empirical analysis of supply chain listed companies.

With the gradual rise of the supply chain financial model and the expansion of scale, credit risk and contagion effects are gradually strengthened as business and financial links between upstream and downstream enterprises in the supply chain. The traditional credit risk contagion assessment model based on the financial status of an enterprise and the pledging of fixed assets has been unable to meet the basic needs of modern supply chain companies and financial institutions for risk control. Therefore, this paper introduces the Cox-Copula model to comprehensively assess a company's financial situation and the business health of upstream and downstream companies in the supply chain from the perspective of actual transactions between companies and fixed asset pledges. The study found that credit risk has a contagion effect in supply chain enterprises, and this contagion effect of credit risk has certain dynamic characteristics. At the same time, it was found that the impacts of macroeconomic factors and microfinance factors on credit risk contagion of supply chain finance have differences in the two dimensions of degree and direction of action.

Financing a push and pull supply chain under revenue sharing: value addition and default risk transmission mechanism

Supply chain finance (SCF) releases participants' capital constraints and facilitates their operations. SCF and transactional contracts can have synchronised effects on participants' performance. This research analyses how credit financing and bank loans with revenue-sharing contracts can help capital-constrained suppliers and retailers improve their financial and risk management performance in the push and pull supply chains. Results suggest that SCF generates greater profits than capital-constrained supply chains without SCF and well-capitalised supply chains, demonstrating a leverage effect. In a push scenario, SCF enhances the wholesale price effect and risk-sharing effect of the revenue-sharing contract, resulting in increased order quantity and profits for participants, albeit with an amplified default risk transmission effect. Conversely, in a pull scenario, SCF boosts participant profitability by strengthening the order quantity effect of the wholesale price contract, although its risk-sharing effect is weakened by the revenue-sharing contract, thereby mitigating the default risk transmission effect. When the revenue-sharing rate is low, the push model performs better in terms of profit enhancement but exhibits higher default risk transmission levels compared to the pull model, and vice versa. The findings guide participants in leveraging SCF and revenue-sharing contracts to enhance their benefits and control the default risk transmission level.

Financing a Capital-Constrained Supply Chain under Risk Regulations: Traditional Finance versus Platform Finance

Small- and medium-sized enterprises (SMEs) frequently face challenges in obtaining financial assistance from traditional banks. Platform Supply Chain Finance (PSCF) has emerged as a promising solution for financing issues among SMEs, with an added focus on integrating sustainability aspects. This study focused on a two-tier supply chain as its primary research topic to find strategies to enhance supplier financial viability and improve the efficiency and profitability of the main manufacturing enterprise. In this study, we establish three distinct hypotheses corresponding to the three models involving supplier and manufacturer participation, encompassing parameters such as production batch size, pricing, and supply chain profit. First, it examined financing decisions through the lens of core enterprise-led platform finance. Second, it applied the Stackelberg game theory to investigate financing decisions in three distinct modes: traditional finance, platform internal finance, and external platform finance. Suppliers, manufacturers, and banks can be seen as participants in a Stackelberg game. In this game, suppliers act as leaders, making production and procurement decisions first, while manufacturers and banks act as followers, adjusting their behavior based on the suppliers’ decisions. Finally, it performed a comparative analysis of decisions and supply chain efficiency across these modes. When the risk regulation cost coefficient falls below a certain threshold, suppliers are willing to set up their own PSCF and there is an optimal level of risk regulation effort within the interval (0, 1). We compare platform finance with traditional finance and find that the traditional finance model maximizes profits for suppliers, while the external financing model maximizes profits for manufacturers and the overall supply chain profit. Findings provide insights for platforms, suppliers, manufacturers, and banks to implement optimal financing and channel structures to increase their profits and promote the sustainable development of the financial supply chain. In addition, future research on blockchain platform models would be highly meaningful.

Selection of third-party logistics in supply chain finance under probabilistic complex hesitant fuzzy sets and distance measures

Financial institutions attach great importance to the multiple attribute decision-making (MADM) problems of selecting an effective third-party logistics (3PL) service provider in supply chain finance. A suitable 3PL service provider can not only assist financial institutions in carrying out supply chain finance activity but can also replace financial institutions in supervising the operation of a target financing supply chain, therefore minimizing financial institutions' operating risks. However, there is no sufficient study on the selection of a 3PL service provider. Hence, the objective of this paper is to establish an innovative concept of the “probabilistic complex hesitant fuzzy set” (PCHFS), which is a hybrid structure of the complex hesitant fuzzy set and the probabilistic fuzzy set to manage complex information in real-decision theory. This paper examines the periodicity of probabilistic fuzzy information and extends the range from [0,1] to the unit disc in the complex plane to provide more ability to describe the full meaning of the information in a mathematical model. Based on the internal structure of the set and to find the degree of discrimination between the pairs of PCHFSs, the generalized distance measures and modified generalized distance measures are defined. Several properties and their relationships between them are derived in detail. Also, several cases of the proposed measures are exposed, which reduces them to the existing studies. Furthermore, based on these proposed measures, a multiple-attribute decision-making (MADM) approach is established in an uncertain environment, and several numerical examples are given to examine the feasibility and validity of the explored measures. Finally, the modified and parameterized distance measures based on PCHFSs are verified by comparing them with some existing measures.

Supply chain financing decision with installment redemption under dynamic pledge

Supply chain financing decision with installment redemption under dynamic pledge

A Novel Interval Type-2 Fuzzy CPT-TODIM Method for Multi-criteria Group Decision Making and Its Application to Credit Risk Assessment in Supply Chain Finance

A Novel Interval Type-2 Fuzzy CPT-TODIM Method for Multi-criteria Group Decision Making and Its Application to Credit Risk Assessment in Supply Chain Finance