Trust Gap Research Articles

Renewing hope for Cyprus peace: a novel approach to reconcile the negotiation positions of the Turkish Cypriot side and the Greek Cypriot side

Abstract Focusing on the achievements and failures of the 2017 Crans-Montana negotiations, this study examines the research question of how and why the last talks failed to resolve the Cyprus issue. It argues that progress in the negotiations was hindered by the enduring mistrust between the community leaders and the inadequacy of their resolve to reach common ground by reconciling their respective differences about the security and guarantees issue. The study suggests the process that helped bring about the Northern Ireland Good Friday Agreement offers a practical and effective approach to compare with the case of a seemingly intractable situation such as the Cyprus problem. The Irish–British negotiations were open to and involved a wide range of parties including the government, civil society, and international stakeholders. Moreover, they benefited from the decision to set a firm deadline for the conclusion of the negotiations. The findings of this study stress that because the previous Cyprus talks lacked an inclusive and transparent negotiation process – one with stated deadlines complete with alternative scenarios in the event of a referendum – they failed to address the broad gap of trust between the two Cypriot communities.

국제개발협력에서 디지털 공공재의 역할과 과제에 관한 연구

Purpose: This study examines the role and challenges of Digital Public Goods (DPGs) in international development cooperation. Emphasizing openness, it analyzes the socio-technical dimensions of DPGs, identifying key considerations and constraints for their development and application. Originality: DPGs are emerging as a strategic tool to achieve Sustainable Development Goals (SDGs) and address digital inequality. However, questions persist about whether technical openness alone can ensure successful development outcomes, suggesting the need for a broader analysis. Methodology: Using a socio-technical systems approach, this study reviews scholarly work on open-source software and open data in the Digital for Development (D4D) field over the past 15 years. Result: The findings show that DPGs enhance public service efficiency, support service expansion, and foster innovation through open access to data and knowledge. Despite these benefits, challenges such as technological complexity, infrastructure limitations, gaps in stakeholder awareness, capabilities, and trust, and hierarchical governance structures reveal tensions between technical and social dimensions. Conclusion and Implication: For effective implementation, DPGs require not only technical openness but also open governance structures, sustainable financial and technical capacities, and context-specific strategies. Governments and international organizations play a critical role as coordinators, while the formation of intermediaries and tailored strategies is crucial. This study contributes to the growing body of DPG research by offering a comprehensive analysis through a socio-technical lens.

Someone Like Me? Disability Identity and Representation Perceptions

AbstractStudies have shown that citizens from minoritized groups, including women and people of color, tend to feel better represented by politicians who share their identity, often translating into electoral support. Is this also the case for disabled people, one of the largest yet often ignored minority groups in our societies? Analyses of data from a conjoint survey experiment with 6,000 respondents in the UK and US show that disabled people indeed feel better represented by disabled candidates. This representational link does not require a sense of group identity and is only partly explained by perceptions of shared policy preferences. The study also reveals that non-disabled people feel better represented by non-disabled candidates. The findings highlight the relevance of disability as a political identity, bolstering calls for more disabled people in politics, and might help explain the disability gaps in political trust and participation.

Crossing the Trust Gap in Medical AI: Building an Abductive Bridge for xAI

In this paper, we argue that one way to approach what is known in the literature as the “Trust Gap” in Medical AI is to focus on explanations from an Explainable AI (xAI) perspective. Against the current framework on xAI – which does not offer a real solution – we argue for a pragmatist turn, one that focuses on understanding how we provide explanations in Traditional Medicine (TM), composed by human agents only. Following this, explanations have two specific relevant components: they are usually (i) social and (ii) abductive. Explanations, in this sense, ought to provide understanding by answering contrastive why-questions: “Why had P happened instead of Q?” (Miller in AI 267:1–38, 2019) (Sect. 1). In order to test the relevancy of this concept of explanation in medical xAI, we offer several reasons to argue that abductions are crucial for medical reasoning and provide a crucial tool to deal with trust gaps between human agents (Sect. 2). If abductions are relevant in TM, we can test the capability of Artificial Intelligence systems on this merit. Therefore, we provide an analysis of the capacity for social and abductive reasoning of different AI technologies. Accordingly, we posit that Large Language Models (LLMs) and transformer architectures exhibit a noteworthy potential for effective engagement in abductive reasoning. By leveraging the potential abductive capabilities of LLMs and transformers, we anticipate a paradigm shift in the integration of explanations within AI systems. This, in turn, has the potential to enhance the trustworthiness of AI-driven medical decisions, bridging the Trust Gap that has been a prominent challenge in the field of Medical AI (Sect. 3). This development holds the potential to not only improve the interpretability of AI-generated medical insights but also to guarantee that trust among practitioners, patients, and stakeholders in the healthcare domain is still present.

Retrospecting Digital Media Use, Negative Emotions, and Trust Gaps During the COVID-19 Pandemic in China: Cross-Sectional Web-Based Survey.

Retrospecting the trust gaps and their dynamics during the pandemic is crucial for understanding the root causes of postpandemic challenges and offers valuable insights into preparing for future public health emergencies. The COVID-19 pandemic eroded people's trust in strangers and acquaintances, while their trust in family members remained relatively stable. This resulted in 2 trust gaps, namely, the family members-strangers trust gap and the family members-acquaintances trust gap. Widening trust gaps impede social integration and undermine the effective management of public health crises. However, little is known about how digital media use shaped trust gaps during a pandemic. This study aims to investigate the relationships between digital media use, negative emotions, the family members-strangers trust gap, and the family members-acquaintances trust gap during the COVID-19 pandemic in China. We test the mediating role of negative emotions between digital media use and 2 trust gaps and compare the indirect effect of digital media use on 2 trust gaps through negative emotions. A cross-sectional web-based survey was conducted in China between January 31, 2020, and February 9, 2020. A total of 1568 adults participated in the survey. Questions related to digital media use, negative emotions, trust in family members, trust in acquaintances, and trust in strangers during the pandemic were asked. Regression analyses were performed to test the associations between the examined variables. We used a 95% bootstrap CI approach to estimate the mediation effects. Digital media use was positively associated with negative emotions (B=0.17, SE 0.03; P<.001), which in turn were positively associated with the family members-strangers trust gap (B=0.15, SE 0.03; P<.001). Likewise, digital media use was positively associated with negative emotions (B=0.17, SE 0.03; P<.001), while negative emotions were positively associated with the family members-acquaintances trust gap (B=0.08, SE 0.03; P=.01). Moreover, the indirect effect of digital media use on the family members-strangers trust gap (B=0.03, SE 0.01; 95% CI 0.01-0.04) was stronger than that on the family members-acquaintances trust gap (B=0.01, SE 0.01; 95% CI 0.003-0.027). The results demonstrate that negative emotions resulting from the frequent use of digital media are a key factor that accounts for the widening trust gaps. Considering the increasing reliance on digital media, the findings indicate that the appropriate use of digital media can prevent the overamplification of negative emotions and curb the enlargement of trust gaps. This may help restore social trust and prepare for future public health crises in the postpandemic era.

Trust: How It Affects the Use of Telemedicine in Improving Access to Assistive Technology to Enhance Healthcare Services.

Modern telemedicine (TM) technologies play a crucial role in enhancing access to Assistive Technology in healthcare services. However, the full benefits of this technology will not be realized unless it is widely accepted among service users (patients). This study aimed to investigate the impact of patient trust and perceived risk on the acceptance of TM for Assistive Technology in healthcare. A comprehensive survey instrument was developed and refined through expert feedback and a pilot study, leading to data collection from 917 participants. The theoretical framework guiding this research was based on the Trust factors in TM, which helped in conceptualizing the factors influencing patient acceptance of TM. The study revealed a significant gap in patient trust in TM and highlighted the multifaceted nature of perceived risk, emphasizing the need to consider individual risk factors separately. Results also indicated that trust in technological reliability and the perceived effectiveness of TM were critical factors influencing its adoption. The findings underscore the importance of building trust among service users and promoting the reliability of TM for achieving desirable medical outcomes. In conclusion, to facilitate widespread acceptance of TM for Assistive Technology, a multi-faceted approach involving healthcare providers, organizations, and governments is essential to address patient concerns, enhance trust, and promote the benefits of this technology.

Towards a framework for repairing stakeholder trust in entrepreneurial small businesses in times of macro-level crises

Purpose The purpose of this study is to understand how managers in entrepreneurial small businesses (ESBs) deal with exogenous (macro) crises, particularly in relation to the breakdown of intra- and inter-stakeholder trust.Design/methodology/approach Utilising a qualitative approach, we draw lessons from Greek ESBs greatly affected by the 2008–2019 economic and 2020–2022 health crises. Based on 54 in-depth, longitudinal investigations of four ESBs at three time points, this research offers insights on overcoming organisation-stakeholder trust breakdowns that emerg due to crises.Findings The findings suggest that macro-level crises undermined the foundations of trust-based relationships, creating a trust gap between organisations and their stakeholders and threatening ESBs’ business practices. Our framework suggests that ESBs repair trust relationships, both intra- and inter-organisational, through sense-making of trust breakdown, implementing trust-repair strategies, and then maintaining trust in those stakeholder relationships through challenging crisis periods.Practical implications Practitioners can use the suggested framework in relation to overcoming intra- and inter-stakeholder trust breakdowns during macro-level crises.Originality/value The paper offers a new framework that can aid entrepreneurs and managers in making sense of repairing and maintaining trust in stakeholder relationships during turbulent times.

Acceptance and Hesitancy Towards Covid-19 Vaccination Among Dialysis Patients in a Dialysis Center in Khartoum in 2022.

COVID-19, a highly infectious virus, poses significant risks, particularly for immuno-compromised individuals. Vaccination remains a key preventive measure, yet acceptance rates vary among populations globally. This study aims to assess COVID-19 vaccine acceptance and hesitancy among dialysis patients atDr. Salma Center for Dialysis in 2022, highlighting the primary reasons for hesitancy within this vulnerable group. A descriptive cross-sectional study was conducted at Dr. Salma Center in Khartoum, Sudan, in 2022. A systematic random sampling method was employed to select participants, who were interviewed using a structured questionnaire. Of a sample of 137 patients, 125 completed the questionnaire with 91.2% response rate. Approximately half of the respondents reported vaccine hesitancy 50%, with 77% acknowledging the severity of COVID-19 but only 53% advised vaccination among their peers. Primary concerns included vaccine side effects 24.8% and mistrust of production companies 10.4%. No significant associations were found between vaccine hesitancy and demographic factors. The study reveals a notable prevalence of COVID-19 vaccine hesitancy among dialysis patients at Dr. Salma Center in Khartoum, 2022. Addressing this hesitancy requires concerted efforts to bridge the trust gap between patients and healthcare systems, coupled with targeted awareness campaigns to correct misinformation and reinforce confidence in vaccines.

The Role of Financial Cooperatives in Building Trust: A Gender Wise Global Analysis

Financial institutions are crucial for economic development. Lack of trust in financial institutions such as banks can have catastrophic consequences, as observed during past financial crises and the COVID-19 pandemic. Considering the importance of financial institutions, we examine the major factors influencing trust in financial institutions among the female population at a global sample. We explore the potential impact of contextual factors, such as institutional performance and country-level trust, on trust in financial institutions by employing logit and Probit models in a global data set. We find that women tend to trust banks more than men on average. We propose that greater gender equality in society and financial inclusion can decrease the gender gap in trust in banks at the country level.

The 2015 Refugee Crisis and Institutional Trust in European Countries

Exogenous events have the potential to affect citizens’ risk-perceptions, (in)security sentiments, electoral choices, policy preferences and institutional trust levels. It has been shown that migrant and refugee flows also affect citizens’ trust and policy preferences. The 2015 refugee crisis as it has come to be known, shook Europe’s cohesion and tested the existing immigration and asylum policies as well as acted as a further stimulus to populist/right wing Eurosceptic parties with an agenda of anti-immigrant restrictive policies. Expectedly, it has attracted considerable attention in the relevant literature. Building on existing studies that examine various aspects associated with the 2015 refugee crisis, the present paper examines its effect on institutional trust levels in Europe. Specifically, it focuses on trust towards the national government, the EU and the two state security services the police and the armed forces. To this effect, the study draws data from successive Eurobarometer surveys before and after the crisis. Employing segmented-type regression models as well as Oaxaca decomposition models it probes into the 2015 refugee crisis’ impact on the levels of institutional trust using over 400,000 responses to the relevant Eurobarometer questions. The results reported herein suggest the presence of “a rally around the flag effect”. Nonetheless, macroeconomic factors such as GDP growth and unemployment as well as differences in behavioural responses also explain a large part of the observed gap in trust before and after the 2015 refugee crisis.

Patient Advocates for Clinical Research (PACER): A Step Toward Ethical, Relevant, and Truly Participatory Clinical Research in India.

Background Clinical research presents a promising path for improving healthcare in contemporary India. Yet, researchers identify gaps in trust, awareness, as well as misconceptions about being a '"guinea pig." We proposed building the capacity of training patient advocacy groups (PAGs) in patient-centered clinical research and through them creating aware patients as research partners. Methodology Patient Advocates for Clinical Research (PACER) is a tiered program to share information and education about clinical research with PAGs. Tier one is a self-paced online learning course, followed by workshops on clinical research, Good Clinical Practice, research consent, case studies, and group discussions. Results A total of 20 PAGs represented by 48 participants, active in areas of pediatric cancer, breast cancer, multiple myeloma, type I diabetes, spinal muscular atrophy, sickle cell disease, and inflammatory bowel diseases, participated. Among 48 participants 30 successfully completed the online course (multiple-choice question evaluation score cut-off >70%), attaining an average score of 23.9 ± 2.1 out of 30. Overall, 48 participants attended workshop 1 and 45 workshop 2, with 140 participants joining the focus group discussion (FGD). An overall improvement of 9.4% (𝜒2 = 46.173; p < 0.001) for workshop 1 and 8.2% (𝜒2 = 25.412; p < 0.001) for workshop 2 was seen in knowledge gain about clinical research. The FGD raised issues such as misleading information from research teams, unethical recruitment, incomprehensible information sheets, and limited trial-related knowledge fostering fear of participation in clinical research. Conclusions Multimodal and tiered learning of clinical research such as that used by PACER has a good participatory and learning response from PAGs and may be further explored.

From rural to urban: Clan, urbanization and trust

This study explores the persistence and transformation of culture amidst a critical economic process in China today, known as urbanization. Based on the China Labor-force Dynamics Survey (CLDS), we find that the clan, a central mechanism used to sustain cooperation in China's rural society, continues to impact trust traits amidst the ongoing urbanization process. Respondents from regions with a history of high clan density report higher levels of limited trust toward families, lower levels of generalized trust toward strangers, and a significant trust gap between these two. Nevertheless, the urbanization process is gradually mitigating the effect of clans on trust traits by driving the population from villages, providing public services to citizens, and promoting cooperation among strangers.

Gaping gaps in rural mental health care: understanding causes and prioritizing solutions

IntroductionMental health is crucial and is the backbone of all dimensions of health; physical, social and spiritual. Mental health has multiple interfaces and it is important to bring mental health to the center stage as it is the key regulator of all human activities. Unfortunately, there are alarming gaps in mental health care especially in rural areas which require attention of mental health professionals and policy makers.The study aims to understand the causes of these gaps and suggest possible and practical solutions to bridge them.ObjectivesTo study the spectrum of mental health gaps present in rural areas of Haryana, a state in the northern part of India and find culturally sensitive and relevant solutions keeping in view the socio economic realities and prevalent legal framework.Methods Any factor having bearing on mental health but is operative sub-optimally would be considered as mental health gap for the current investigation. Rural camps were organized in 10 villages to assess the service gap at three different levels: overt (measurable), covert (including attitudinal) and ancillary (including those embedded in the psychiatry evaluation and treatment). The camps were organized by following these three basic steps: 1) Evaluating the geographic and demographic details of the villages selected. This was done by meeting the key stakeholders of the villages and the official health and service statistics available on the government website 2) Camp by multidisciplinary team in the villages with an advance intimation. The team members evaluated the mental health care awareness and the felt needs by interviewing all the villagers attending the camp on that particular day. 3) Post camp review by the team to analyze the service gaps and steps to address and narrow the gaps.ResultsApart from inadequate availability of professional and infrastructural resources, there were many attitudinal and ancillary gaps serving as obstacles to treatment seeking. Trust gaps leading to poor acceptance and legislation not congruent with the socio cultural needs were key impediments. Rural people had more faith in Spiritual leaders and faith healers for their mental health issues and medical help was sought only when they have signs of physical illness. Mental health and illnesses were not on priority. Availability, accessibility and affordability of health services were important factors needing immediate attention.Conclusions Rural services need to be augmented by de professionalization and task shifting is the key to address and cover the yawning gaps in the services. Massive, coordinated, multidisciplinary and sustainable efforts are needed to bridge the multitude of gaps keeping in view poverty and illiteracy as compounding factors.Disclosure of InterestNone Declared

End-to-End Verification for Subgraph Solving

Modern subgraph-finding algorithm implementations consist of thousands of lines of highly optimized code, and this complexity raises questions about their trustworthiness. Recently, some state-of-the-art subgraph solvers have been enhanced to output machine-verifiable proofs that their results are correct. While this significantly improves reliability, it is not a fully satisfactory solution, since end-users have to trust both the proof checking algorithms and the translation of the high-level graph problem into a low-level 0-1 integer linear program (ILP) used for the proofs. In this work, we present the first formally verified toolchain capable of full end-to-end verification for subgraph solving, which closes both of these trust gaps. We have built encoder frontends for various graph problems together with a 0-1 ILP (a.k.a. pseudo-Boolean) proof checker, all implemented and formally verified in the CakeML ecosystem. This toolchain is flexible and extensible, and we use it to build verified proof checkers for both decision and optimization graph problems, namely, subgraph isomorphism, maximum clique, and maximum common (connected) induced subgraph. Our experimental evaluation shows that end-to-end formal verification is now feasible for a wide range of hard graph problems.

Trust in federal COVID-19 vaccine oversight and parents’ willingness to vaccinate their children against COVID-19: a cross-sectional study

BackgroundOver half of the youth population in the United States, aged 6 months to 17 years, have not received the Coronavirus Disease 2019 (COVID-19) vaccine. Given parents’ central role in vaccinating their children, we examined associations between parents’ trust of the federal oversight of COVID-19 vaccine safety and their willingness to vaccinate their children against COVID-19.MethodsThis cross-sectional study included 975 parents of minor children residing in Philadelphia who completed the online survey between September 2021 and February 2022. Trust was measured using a four-point Likert scale ranging from ‘do not trust’ to ‘fully trust’ for two variables: (1) trust in federal oversight of COVID-19 vaccine safety for children and (2) trust in federal oversight of COVID-19 vaccine safety for the general public. A multiple logistic regression evaluated associations between trust and parents’ willingness to vaccinate their children, which was measured on a five-point Likert scale ranging from ‘strongly disagree’ to ‘strongly agree.’ The analysis was adjusted for race/ethnicity, age, sexual orientation, gender, education, insurance, and parents’ vaccination status.ResultsAnalyses included 975 parents whose children had not previously been vaccinated against COVID-19 (mean age 36.79, standard deviation 6.4; 42.1% racial/ethnic minorities; 93.2% heterosexual; and 73.7% with a college degree). Greater trust regarding federal oversight of COVID-19 vaccine safety for children [adjusted odds ratio (aOR) = 1.52, 95% confidence interval (CI): 1.13–2.04] and for the public (aOR = 1.58, 95% CI: 1.17–2.14) were each associated with increased willingness to have their child vaccinated against COVID-19. Unvaccinated parents had decreased willingness compared to parents who had received at least one dose of the vaccine (aOR = 0.14, 95% CI: 0.04–0.41). College-graduate parents exhibited increased willingness compared to those without a college degree (aOR = 2.07, 95% CI: 1.52–2.81). Non-heterosexual parents showed increased willingness compared to heterosexual parents (aOR = 2.30, 95% CI: 1.20–4.76).ConclusionsTrust in federal COVID-19 vaccine oversight was associated with parental willingness to vaccinate their children against COVID-19 among parents whose children have not yet been vaccinated. Identifying and addressing causes of mistrust are crucial next steps to promote child vaccination. Intervention efforts to address trust gaps should remain a public health priority.

Challenges for trustworthy autonomous vehicles: Let us learn from life

AbstractCurrent surveys indicate limited public and individual trust in autonomous vehicles despite a long tradition to ensure their (technical) trustworthiness in informatics and systems engineering. To address this trust gap, this article explores the underlying reasons. The article elaborates on the gap between trust understood as a social phenomenon and, in contrast, the research tradition aimed at guaranteeing (technical) trustworthiness. It discusses to what extent those research traditions in the social sciences and humanities have been recognized and reflected in systems engineering research to date. Trust, according to the current state of research in the social sciences and humanities, heavily relies on individual assessments of an autonomous vehicle's abilities, benevolence and integrity. By contrast, technical trustworthiness is defined as the sum of intersubjective, measurable, technical parameters. They describe certain abilities or properties of a system, often according to respective technical standards and norms. This article places the “explainability” of autonomous systems in a bridging role. Explainability can help to conceptualize an integrative trust layer to communicate a system's abilities, benevolence and integrity. As such, explainability should respect the individual and situational needs of users, and should therefore be responsive. In conclusion, the results demonstrate that “learning from life” requires extensive interdisciplinary collaboration with neighboring research fields. This novel perspective on trustworthiness aligns existing research areas. It delves deeper into the conceptual “how”, dives into the intricacies and showcases (missing) interconnectedness in the state of research.

Bridging the trust gap in financial reporting: the impact of blockchain technology and smart contracts

Purpose This study aims to examine the role of blockchain technology (BCT) in trust in financial reporting (TFR) and the use of smart contracts (USC). It aims to ascertain the mediating role of USC in the relationship between BCT and TFR, thereby contributing to the limited empirical literature in this domain. Design/methodology/approach Based on a sample of the accountants’ familiarity with BCT, a structural equation model was constructed and analyzed using AMOS 24. The model proposes and tests relationships between BCT, USC and TFR. Findings The study highlights BCT’s significant positive influence on TFR, with USC mediating this effect. It provides empirical evidence that supports the transformative potential of BCT and USC in enhancing TFR. Practical implications These findings have significant implications for practitioners, regulatory bodies and policymakers. By highlighting the effectiveness of BCT and USC in fostering TFR, the study makes one aware of strategies to mitigate financial malpractices. It promotes the adoption of BCT in accounting practices. Originality/value This study addresses a gap in the literature by investigating the complex interplay of BCT, USC and TFR. It offers a unique perspective by exploring the mediating role of USC, thereby enhancing our understanding of the mechanisms through which BCT can foster TFR.

Can TV Politics Improve the Trust Pattern of “Intimate Central Government and Alienate Local Government”?

The hierarchical and descending trust pattern among Chinese citizens toward governments at all levels, characterized by a stronger trust in the central government and a weaker trust in local governments, often leads to the “Tacitus trap” in local government governance. As a new platform for public participation and local government supervision, can TV political programs improve the trust pattern of “intimate central government and alienate local government,” and achieve a balance of trust between the central and local governments? Using data from the Social Consciousness Survey Data of Netizens 2018, we conducted an empirical analysis of the impact of TV political programs on residents’ trust patterns toward different levels of government. The results of this study show that: first, the opening of TV political programs can significantly narrow the trust gap between the central and local governments. This primarily achieved by significantly increasing the level of trust that residents have in the provincial government. Second, influence mechanism reveals that the introduction of of TV political programs can reduce the residents’ trust gap between central and local governments mainly by bolstering government transparency, fortifying government responsiveness, and boosting residents’ political efficacy. Third, the heterogeneity analysis indicates that TV political programs can significantly improve the trust gap between central and local governments among various groups, including women, youth, democratic party members and the public, high digitalization ability, residents in the east and provincial capital cities. Fourth, during the COVID-19 pandemic, the opening of TV political programs significantly increase residents’ trust in the central government but do not significantly raise residents’ trust in local governments. This may, to some extent, reinforce the trend of “intimate central government and alienate local government” among the public .

Institutional interactions and racial inequality in policing: How everyday encounters bridge individuals, organizations, and institutions

AbstractRacial disparities in policing are profound and accompanied by equally persistent gaps in trust. Analyses of these and other racial inequities are often bifurcated between institutional and individual levels of analysis. Here, I describe how everyday contacts between the public and doctors, teachers, or police officers—institutional interactions—can bridge these levels. Organizations direct and coordinate these agents' individual discretion; at the same time, individual agents relate to the public in ways institutions themselves cannot. The dual nature of these encounters links individual and dyadic processes to organizational and institutional ones. Using police stops as a paradigmatic example, I illustrate how institutional interactions contribute to racial gaps in police‐community trust, how they can be used as a platform for changing the relationship between law enforcement and the public, and how they can inform research on racial inequality in a range of institutional contexts, including health and education.

Supply Chain Finance in SMEs A Conceptual Analysis

This paper addresses the relatively new concept of supply chain finance (SCF) and its application in SMEs. The flow of financial resources in supply chains is most important and has become the focus of study. As a result, the integration of finance and supply chain management has opened new business areas for banks as well as financial and logistics service providers. Supply Chain Finance solution can create a 'win-win' situation for both buyer and supplier. So this research article focuses on the study of supply chain finance (SCF) in SMEs.&#x0D; Despite the fact that small and medium-sized enterprises (SMEs) in India account for over 62 million jobs and approximately 30 percent of the country's GDP, the great majority of them lack access to affordable loans from traditional banks. They are so often left with little choice but to resort to informal lenders, who charge usurious interest rates in order to meet their borrowing demands. Small and medium-sized enterprises (SMEs) are particularly vulnerable to the negative effects of the credit gap, which include but are not limited to higher costs, lower profits, slower growth, and a lack of resilience in the face of economic volatility (Iyer, 2021). Here, supply chain financing (SCF) could be helpful in bridging the trust gap by equipping lenders with more resources to manage credit risk and broadening the scope of financing to include vast pools of poorly understood MSMEs. SCF provides buyers and sellers with risk mitigation solutions based on technological advancements in order to reduce financing costs and increase company efficiency. Since SCF is still in its infancy, there is a pressing need to make this facility accessible to the vast majority of MSMEs so that they, in turn, can benefit from the positive effect it has on the performance of currently-adapted firms.&#x0D;