Research on the Risk Contagion Path and Prevention of Supply Chain Finance Based on DEMATEL-ISM Model

Abstract

The financing risk of enterprises in the supply chain is easily transmitted in the supply chain system, leading to the overall supply chain in financial difficulties. Therefore, it is necessary to analyze the links and transmission paths of risk generation and control them in time. In this paper, 15 factors are extracted from three perspectives: supply chain environment, financing enterprise and core enterprise, and a risk assessment system for supply chain finance is established. Based on this, the coupling method of Decision-making Trial and Evaluation Laboratory-Interpretative Structural Modelling (DEMATEL-ISM) is used to investigate the influence relationship among the factors and the multi-level recursive structural analysis of supply chain risk transmission paths. The results show that the DEMATEL-ISM model can visualize the interactions among three levels of supply chain financial risks: supply chain environment, financing firms, and core firms, and identify five key influencing factors such as innovation capability of core firms in the process of financial risk generation and transmission. This paper investigates the factors affecting the generation of financial risks in the supply chain and the risk transmission paths, and provides guidance for effective control and prevention of supply chain financial risks.