Supply Chain Finance Research Articles

Sustainable Development of the Real Economy: Supply Chain Finance and Enterprise Financialization

Supply chain finance, as an important financial instrument supporting the sustainable development of the real economy, has attracted significant attention. In this paper, research is conducted on 3181 non-financial listed enterprises in the A-share market in China from 2012 to 2021. Multiple regression analysis is adopted to examine the relationship between supply chain finance and enterprise financialization, as well as the impact of the former on the latter and the underlying mechanisms at play. The research findings indicate that the supply chain finance model, led by core enterprises, tends to exacerbate enterprise financialization in China. The significant resource dependence of small- and medium-sized enterprises (SMEs) on core enterprises acts as a moderating variable for supply chain finance and enterprise financialization. This dependence amplifies the stimulus of supply chain finance on the “financialization” of enterprises, demonstrates a pronounced moderating effect within state-owned enterprises, and strengthens over time when the core enterprises possess information advantages. The findings articulated herein contribute to the scholarly discourse, offering insights into the improvement of supply chain finance and the advancement of the real economy’s sustainable development via financial services. A good supply chain finance model should align with the requirements for the development of China’s real economy. It should provide not only financial assistance to enterprises but also foster a virtuous cycle within the industrial chain and encourage industrial production over financial investment.

Study on Supply Shain Financing Scheme of A Vietnamese Coffee Company in China

This paper takes G7 Coffee, a Vietnamese coffee company, as an example to design a supply chain financing scheme suitable for the company. First of all, on the basis of explaining the concept of supply chain, supply chain financing and other related concepts, supply chain management theory, supply chain financing model, fuzzy comprehensive evaluation model and other theoretical foundations, based on the financing situation of a Vietnamese coffee company G7 coffee in China, combined with the financing problems of the company and the company's capital needs, The feasibility of supply chain financing of G7 Coffee in China for a Vietnamese coffee company is proposed. Secondly, this paper introduces the evaluation method of supply chain financing scheme of G7 Coffee in China of a Vietnamese coffee company. Finally, on the basis of clear objectives and principles of financing scheme design, an evaluation system of supply chain financing mode of a Vietnamese coffee company based on AHP is constructed. The applicability of accounts receivable supply chain financing, inventory supply chain financing and prepayment supply chain financing adopted by the company is further analyzed by fuzzy comprehensive evaluation method. The fuzzy comprehensive evaluation results show that The accounts receivable financing model is the best financing model for the supply chain financing of G7 Coffee in China of a Vietnamese coffee company. In order to ensure the smooth implementation of the supply chain financing plan of a Vietnamese coffee company G7 Coffee in China, this paper proposes to strengthen the guarantee from three aspects: financial system, credit management and risk control.

Blockchain-Enabled Utility Optimization for Supply Chain Finance: An Evolutionary Game and Smart Contract Based Approach

In recent years, blockchain technology has attracted substantial interest for its capability to transform supply chain management and finance. This paper employs evolutionary game theory to investigate the application of blockchain in mitigating financial risks within supply chains, taking into account the technology’s maturity and the risk preferences of financial institutions. By modeling interactions among financial institutions, small and medium enterprises (SMEs), and core enterprises within the accounts receivable financing framework, this study evaluates blockchain’s impact on their decision-making and its efficacy in risk reduction. Our findings suggest the transformative potential of blockchain in mitigating financial risks, solving information asymmetry, and enhancing collaboration between financial entities and SMEs. Additionally, we integrate smart contracts into supply chain finance, proposing pragmatic procedures for their deployment in real-world contexts. Via a detailed examination of blockchain’s maturity and financial institutions’ risk preferences, this research demonstrates the primary determinants of strategic decisions in supply chain finance and underscores how blockchain technology fosters system stability using risk mitigation. Our innovative contribution lies in the design of smart contracts for the ARF process, rooted in blockchain’s core attributes of security, transparency, and immutability, thereby ensuring efficient operation and cost reduction in supply chain finance.

Quantitative Research on “Blockchain+Supply Chain” Financing Based on Game Theory Modeling

In the 21st century, with globalization and the “Belt and Road” economic activities. As an important financial means, supply chain financing plays a key role in trade transactions between enterprises. Supply chain financing refers to providing financial support and services to different participants in the entire supply chain through financial instruments to meet the financial needs of their production and trade activities. To address the issue of “blockchain+supply chain” financing, specifically in the traditional supply chain, the downstream of the SMEs financing difficulties has been one of the factors plaguing its development. Still, also one of the constraints on the overall supply chain operational efficiency, we use the principles of game theory to establish a game theory model between financial institutions and SMEs and use Matlab software to solve the simulation data. We use the principle of game theory to establish a game theory model between financial institutions and MSMEs, use Matlab software to solve the simulation data and analyze the financial institutions to adopt the “blockchain+supply chain” financing strategy, and MSMEs to adopt the trustworthy strategy so that the two sides can maximize the benefits, and also maximize the benefits for the whole supply side. In addition, the research process and results can provide references for relevant state departments and various social enterprises and organizations.

Governance requirements in supply chain finance: the need for a dual-layered semipermeable boundary

PurposeThe purpose of this study is to define and investigate the governance requirements of supply chain finance (SCF).Design/methodology/approachA qualitative analysis of 849 news articles published in UK newspapers (2000–2022) using the Gioia method.FindingsSCF governance relies on developing capacities for reflexive scrutiny at two stages: (1) prior to entering into an SCF relationship and (2) during its operation. Based on the notion of SCF as a complex adaptive system, we theorise SCF governance requirements as a dual-layered semipermeable boundary. The semipermeability of the two layers allows for a dynamic exchange between the SCF system and its environment. The first layer is the capacity to selectively enable or control the entry and access of certain actors and practices into the SCF system. The second layer is a capacity for ongoing scrutiny of the SCF operation and its development. Further, we identify five aspects of governance to be enabled, i.e. enhancing adaptability, building confidence, improving efficiency, advancing technology and promoting transparency; and four aspects to be controlled, i.e. preventing abuse of power, curbing fraud risk, constraining operational risk and restricting risky extensions to SCF practices.Practical implicationsOur dynamic framework can guide supply chain (SC) members in making decisions about whether to participate, or continue to operate, in an SCF relationship. Moreover, the findings have implications for policymakers and authorities who oversee entry/access and the involvement of SCF providers, particularly, fintech firms.Originality/valueThe study contributes to both the SC and governance literature by providing a systematic analysis of what SCF governance has to accomplish. Our novel contribution lies in its analysis of SCF governance based on a complex adaptive system approach, which expands the existing literature where SCF is described in rather static terms. More specifically, it suggests a need for a dynamic duality of SCF governance through the semipermeable boundary that selectively enables and controls certain SCF actors and practices.

Research on Information Sharing Among Supply Chain Financial Enterprises Based on Blockchain

As a key mechanism to alleviate the financing difficulties of small and medium-sized enterprises, supply chain finance has an important impact on corporate growth and supply chain stability. However, the traditional model faces transparency and trust issues due to insufficient information sharing. The development of blockchain technology provides new solutions to these problems, especially in terms of improving information sharing efficiency, enhancing transparency and security. Therefore, this article explores the application and compatibility of blockchain in supply chain finance by building a supply chain financial information sharing system based on blockchain. By analyzing typical scenarios and business processes, it is proven that this system can effectively improve the efficiency of supply chain financial operations, reduce transaction costs, and enhance overall trust. The results not only provide a new technical path for the practice of supply chain finance, but also provide a theoretical reference for the construction of the supply chain finance system under the new development pattern.

Supply Chain Finance and Innovation Investment: Based on financing constraints

We selected the data of listed small and medium-sized enterprises (SMEs) in China from 2012 to 2022 as the research sample to explore the impact of supply chain finance on SMEs' R&D investment. It is found that supply chain finance can effectively help SMEs to improve their R&D and innovation investment; internal control ability and risk-taking level play a moderating role in the impact of supply chain finance on innovation investment; and financing constraints play a mediating role in the relationship between supply chain finance and SMEs' R&D investment.

A Comparative Study between Growth of offering supply chain finance with Non-offering Banks in Pakistan.

This study empirically examines a comparative study between banks growth of offering supply chain finance with Non-offering Banks in Pakistan. This study used dynamic generalized method of moments (GMM) technique, based on 22 Pakistani Banks (10 offer supply chain finance and 12 non-offering supply chain finance) data during 2012-2022. The results show a significant difference between banks growth by offering and non-offering supply chain finance. Furthermore, the results show a significant positive impact of banks growth with supply chain finance on banks financial performance. This study encourages banks to offer supply chain finance that contributes towards their growth and financial performance.

Supply Chain Finance: How Do Supply Chain Strategies Perform in Mitigating Supply Chain Disruption and Commodity Price Volatility Risks?

Supply Chain Finance: How Do Supply Chain Strategies Perform in Mitigating Supply Chain Disruption and Commodity Price Volatility Risks?

Green supply chain finance strategies with market competition and financial constraints

In the context of sustainable development, market competition is intensifying, and financial constraints have emerged as a significant hindrance to green project investment. Green Supply Chain Finance (GSCF), characterized by long-term collaboration, has emerged as a crucial financial approach to mitigate corporate financial limitations and channel capital flows into environmentally friendly industries. We propose a two-echelon supply chain with one supplier and two competing retailers over a single period and investigate ordering, sales, and financing decisions simultaneously under competition. Retailers constrained by financial considerations may secure GSCF or traditional bank financing (BF) loans. This study investigates the influence of competition on pricing and sales strategies during the selling season. The results demonstrate that retailers select between clearance and responsive selling strategies based on the level of market competition. During the ordering season, retailers share the product market equally when interest rates are uniform, and the supplier formulates a supply chain contract while considering the financing interest rate. In the presence of differential interest rates, retailers may not always opt for the GSCF, even when they offer an interest rate advantage, due to the comprehensive impacts of operational and financial strategies. Remarkably, competitive retailers do not choose the GSCF when their initial green investment capital surpasses a certain threshold.

Green Supply Chain Finance: A Bibliometric Review of Financing Instruments, Challenges, and Opportunities

Green Supply Chain Finance (GSCF) has emerged as a pivotal approach for businesses to reconcile financial objectives with environmental sustainability imperatives. This bibliometric review synthesizes the evolving landscape of GSCF literature, analyzing financing instruments, challenges, and opportunities. Leveraging data from 967 papers spanning 1992 to 2024, the review reveals a substantial scholarly interest with a cumulative citation count of 82,996. Through network visualizations and citation analyses, key themes such as sustainable practices, financial innovations, and technology integration are identified. The review underscores the significance of GSCF in advancing sustainable supply chain management and calls for continued research and collaboration to address emerging challenges and capitalize on opportunities.

Emerging Trends in Fintech: Revolutionizing Financial Services in Commerce

Financial technology (Fintech) is revolutionizing commerce and reshaping the financial services industry through technological advancements, innovative business models, and collaborative ecosystems. This abstract provides an in-depth overview of the impact of Fintech on various aspects of commerce, including traditional banking, wealth management, e-commerce, supply chain finance, regulatory environment, and the role of startups and innovation hubs. Drawing insights from a comprehensive analysis of existing literature and research findings, this abstract explores the transformative potential of Fintech and outlines key implications and future directions for the industry. Evolution of Fintech has been propelled by advancements in technologies such as blockchain, artificial intelligence (AI), and machine learning (ML). These technologies enable decentralized and transparent transactional capabilities, data-driven insights, and automation, driving efficiency and innovation across the financial services landscape. In particular, the integration of Fintech in traditional banking has led to the rise of digital banking platforms, mobile payment solutions, and peer-to-peer lending networks, challenging traditional banking practices and enhancing customer experiences. Furthermore, automated wealth management platforms and robo-advisors are democratizing access to investment services, offering individualized investment advice, and reshaping wealth management strategies. The integration of Fintech in e-commerce and supply chain finance is enhancing efficiency, transparency, and security in online transactions, benefiting both merchants and consumers. Digital wallets, payment gateways, and blockchain applications are streamlining payment processing and optimizing cash flow across the supply chain ecosystem. While Fintech presents significant opportunities for innovation and growth, it also poses regulatory challenges and considerations. The regulatory environment surrounding Fintech is complex and multifaceted, requiring a balance between promoting innovation and ensuring consumer protection, market integrity, and financial stability. Collaboration between startups, established institutions, and regulatory authorities is essential for navigating regulatory complexities and fostering a conducive environment for Fintech growth. Startups and innovation hubs play a crucial role in driving Fintech innovation and entrepreneurship, providing support infrastructure, mentorship, and access to capital. These stakeholders foster collaboration, experimentation, and knowledge exchange, accelerating industry transformation and driving economic development. Moreover, collaboration between traditional financial institutions and Fintech startups is essential for driving innovation and expanding access to financial services.

Impact of Enterprises Relationship on ML’s Ability to Forecast SME’s Credit Risk in SCF: A Research Based on Complex Network

ABSTRACT In this study, we investigate the impact of introducing enterprise relationship to train machine learning (ML) algorithms on improving its ability of forecasting small and medium-sized enterprises’ (SMEs) credit risk in supply chain finance (SCF). First, we incorporate attributes of SME node in the CEs-SMEs network, a bipartite network constructed with transaction data in the Chinese automobile industry, into financial indicators to train ML algorithms for improving forecasting performance. Second, we employ the weighted one-mode projection approach to extract a projected-SMEs network that reveals the relationship among SMEs from the CEs-SMEs network and examine whether the ML algorithms’ forecasting performances is improved when considering attributes in the projected-SMEs network. Third, we analyze the correlation between SME’s credit risk and individual network attribute to specifically understand the impact of enterprise relationship on credit risk. Overall, the empirical results indicate that the forecasting performance is obviously better when enterprise transaction relationship is considered, and it is further enhanced after we apply weighted one-mode projection approach. Meanwhile, the variable importance analysis and the binomial logistic regression demonstrate how significantly each network attribute is correlated with credit risk, and the discussion on partial dependence plot shows that SMEs with large degree are non-risky generally.

Deep reinforcement learning imbalanced credit risk of SMEs in supply chain finance

Deep reinforcement learning imbalanced credit risk of SMEs in supply chain finance

Research on Credit Risk Prediction Method of Blockchain Applied to Supply Chain Finance

INTRODUCTION: From the perspective of blockchain, it establishes a credit risk evaluation index system for supply chain finance applicable to blockchain, constructs an accurate credit risk prediction model, and provides a reliable guarantee for the research of credit risk in supply chain finance.OBJECTIVES: To address the inefficiency of the current credit risk prediction and evaluation model for supply chain finance.METHODS: This paper proposes a combined blockchain supply chain financial credit risk prediction and evaluation method based on kernel principal component analysis and intelligent optimisation algorithm to improve Deep Echo State Network. Firstly, the evaluation system is constructed by describing the supply chain financial credit risk prediction and evaluation problem based on blockchain technology, analysing the evaluation indexes, and constructing the evaluation system; then, the parameters of DeepESN network are optimized by combining the kernel principal component analysis method with the JSO algorithm to construct the credit risk prediction and evaluation model of supply chain finance; finally, the effectiveness, robustness, and real-time performance of the proposed method are verified by simulation experiment analysis.RESULTS: The results show that the proposed method improves the prediction efficiency of the prediction model.CONCLUSION: The problems of insufficient scientific construction of index system and poor efficiency of risk prediction model of B2B E-commerce transaction size prediction method are effectively solved.

The (un)sustainable mix: supply chain finance, sustainability ratings and liquidity

Purpose This study aims to investigate the interaction effect between offering supply chain finance (SCF) programmes and sustainability ratings on the liquidity performance of buyers and suppliers. Design/methodology/approach The study uses a unique sample of buyers that each have an SCF programme. The sample is complemented with financial information and sustainability scores. The data is analysed through a random effects model. Findings Aligning with recent advances in SCF literature, the results confirm a tendency for SCF programmes to favour buyers over suppliers. However, the relationship between SCF programme adoption and liquidity performance for buyers and suppliers is positively moderated by the strong sustainability performance of both parties. Practical implications Buyers and suppliers are advised to implement and adopt effective SCF programmes that are beneficial for both parties. For buyers, the authors suggest leveraging on SCF programmes as incentives to foster sustainable behaviour among suppliers. For suppliers, the authors recommend caution before joining programmes offered by buyers that do not perform well on sustainability. Social implications Enhancing sustainability within global supply chains and fostering favourable payment practices towards suppliers are crucial for policy development and regulation. The findings clarify the connection between both components, offering valuable insights for policymakers in this domain. Originality/value The study is built on a manually picked, unique database of buyers offering SCF programmes to their suppliers. This allows, across a large sample, an evaluation of the differences between buyers that offer SCF programmes and those that do not.

Modelling a Logistics and Financial Supply Chain Network during the COVID-19 Era

Background: Supply chain networks (SCNs) have been interrupted by the COVID-19 pandemic, leaving them open to financial losses. SCs have been impacted by the pandemic, necessitating the adoption of sustainable practices and dynamic capacities to ensure resilience and performance. Several studies have focused on this subject, offering insights into the importance of sustainable supply-chain management, corporate governance, big data management activities, and digital technology in minimising the consequences of the pandemic and fostering sustainability. Methods: This study suggests an analytical framework for assessing environmentally friendly procedures and dynamic capacities to assure performance in a disruptive environment. Results: The following are some of the important details and contributions in this article: (1) developed a conceptual framework for assessing dynamic capacities and sustainable behaviours considering COVID-19, (2) concentrates on financial ratios during COVID-19, and (3) established drivers for sustainable practices and competencies during disruption and unpredictable business settings. Conclusions: The suggested model can assist practitioners in creating and implementing sustainable supply chain (SC) activities and tracking and assessing their effects on the sustainability of businesses. So, the proposed model can assist managers in creating and implementing sustainable supply-chain activities and tracking and analysing their effects on the sustainability of businesses.

Measuring supply chain finance: a study of scale development and validation in the emerging market context

PurposeFinancing remains a serious concern for firms and is considered the main hurdle in the growth and development of small and medium enterprises (SMEs). Recently, a new stream of financing (SCF; supply chain finance) has emerged to meet the financing issues of SMEs. Therefore, measuring SCF is essential to support SMEs’ operations. This study aims to develop and validate the SCF scale based on extant literature.Design/methodology/approachUsing a mixed-method approach, this study recruited different samples of SME entrepreneurs to confirm the internal consistency, assess construct validity and check the item structure of the SCF scale in AMOS.FindingsThe outcomes of confirmatory factor analysis demonstrated the six factors of SCF (inventory financing, working capital optimization, reverse financing, fixed assets financing, logistics financing and order cycle financing) spread over 21 items. An interitem solid structure of the SCF scale offers invaluable contributions to the supply chain management literature.Practical implicationsThis research supports SME entrepreneurs to obtain secure financing at the best cost, mitigating the risk of default, supporting the buyers’ payment terms, providing early payment to suppliers and strengthening the firm’s value chains. SMEs can obtain financing per their requirements to support their operational business processes. Moreover, SMEs can plan, manage and control finance-related transactional activities by correctly identifying financing solutions.Originality/valueThe present study contributes to SCM literature by developing and validating the SCF scale. To the best of the author’s knowledge, this is the first study that redefined SCF and identified its six dimensions.

Examining supply chain financing: A comparative and coordination analysis under a buyback contract

This paper focuses on financing schemes for a supply chain with high salvage values of unsold products. Combining the buyback contract with a partial credit guarantee (PCG) contract and trade credit (TC) contract, we propose two financing schemes, PCG-Buyback and TC-Buyback, to provide flexible financing services for a capital-constrained retailer and obtain equilibrium strategies of each supply chain member. Furthermore, for PCGBuyback, this paper obtains a Pareto coordination frontier consisting of the credit guarantee coefficient and the buyback price at different initial capital levels, which is more flexible to achieve supply chain coordination. Finally, we analyze the manufacturer’s strategic choices of PCG-Buyback and TC-Buyback in terms of credit guarantee coefficient, buyback price, and financing rate. Our results show that PCG-Buyback is the optimal financing scheme for the manufacturer when both the credit guarantee coefficient and buyback price (or financing rate) are low; otherwise, TC-Buyback is the dominant strategy. This study explores how the risk-sharing mechanism combination of PCG and buyback contracts can provide a more flexible approach to supply chain coordination. Additionally, it highlights the significance of the manufacturer selecting a better financing scheme based on its individual characteristics.

Research on the Evolution Path of Supply Chain Financing for Small and Medium-sized Enterprises

Information asymmetry is the main reason why it is difficult and expensive for small and medium-sized enterprises to obtain financing. This paper uses the system dynamics method to construct an evolution model of the supply chain financing system of small and medium-sized enterprises, simulates the dynamic changes of the financing amount of the supply chain financing system of small and medium-sized enterprises, and explores the relationship between various influencing factors and their effects on the financing amount. The research shows that the supply chain financing of SMEs is a complex and dynamic system, and the overall financing amount has a significant cumulative effect, and is more sensitive to the solvency of SMEs, the relationship between core enterprises and financial institutions, government support, and the degree of supply chain information sharing. In order to alleviate the financing difficulties of small and medium-sized enterprises, the government should increase support for the supply chain financing of small and medium-sized enterprises, banks and other financial institutions should strengthen the supply chain financing service capabilities of small and medium-sized enterprises, small and medium-sized enterprises should pay attention to the improvement and upgrading of internal management, and the main body of the supply chain should strengthen cooperation and communication.