Highlight risk management in supply chain finance: effects of supply chain risk management capabilities on financing performance of small-medium enterprises

Abstract

Purpose The purpose of this paper is to explore the important role of supply chain risk management (SCRM) capabilities as pre-factors for SMEs to improve supply chain financing performance (SCFP), also incorporating the effect of supply chain integration (SCI). Design/methodology/approach From the intersection of SCRM and SCF literature, this paper proposed hypothesis to discuss the impact of SCRM capabilities on SCFP and the role of SCI, aiming at combine SCRM with supply chain financing management. The research model was validated applying structural equation modeling on survey data from 286 Chinese small and medium-sized enterprises (SMEs). Findings Four dimensions of SCRM capabilities have significant positive effects on SCFP with different significant levels, confirming that they are important pre-factors in supply chain finance (SCF). In addition, the impact of SCRM capabilities on SCFP differ when SCI varies, indicating the promoting effect of SCI. Practical implications SMEs should establish SCRM capabilities as supply chain risks greatly influence the evaluation of financial providers and the achievement of SCF. Meanwhile, SCI should be attached for it enables superior SCFP even if SCRM capabilities are relatively limited. Originality/value This study represents a pioneering attempt to analyze the pre-factors of SMEs in improving SCFP by combing SCRM with SCF management. Few prior studies have highlighted the importance of SCRM in SCF.

Research on Decision Analysis with CVaR for Supply Chain Finance Based on Blockchain Technology

“…In addition, risk is an important topic in supply chain finance. Qiao et al [3] found that supply chain risk management has a significant impact on the performance of supply chain finance via the study of data obtained from 286 SMEs. Li, Y. et al [4] used a hybrid extreme gradient boosting multilayer perceptron (XGBoost-MLP) model to assess the credit risk of digital SCF.…”

Navigating Growth: The Nexus of Supply Chain Finance, Digital Maturity, and Financial Health in Chinese A-Share Listed Corporations

“…When enterprises apply the tool of supply chain finance, it becomes extremely important to fully consider their internal circumstances. Through effective risk control and management [36], they can better promote sustainable growth and ensure their long-term financial stability and market competitiveness.…”

The effect of SMEs' ambidextrous innovations on supply chain financing performance: balancing effect and moderating effect

“…In reality, FSPs can be financial institutions or supply chain focus enterprises; they are not limited to a specific type of entity (Song et al, 2018). Existing literature has mainly focused on the operation mode Lu et al, 2022b;Yan and Sun, 2015), risk management and control (Xu et al, 2018), information technology application (Lu et al, 2020;Song et al, 2021), network structure (Jhang et al, 2021;Steven et al, 2019), innovation capabilities (Lu et al, 2020;Fabbri and Klapper, 2016;Qiao and Zhao, 2023), supply chain collaboration (Pfohl and Gomm, 2009), the overall operation efficiency of the supply chain (Filbeck et al, 2016) and other aspects of supply chain finance (Beka Be Nguema et al, 2021b;Elliot et al, 2020). From these perspectives, scholars have conducted a significant amount of research on the driving factors of SCFP, as seen in Table 1.…”