Does supply chain finance adoption improve organizational performance? A moderated and mediated model

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zhen Bi ◽  
Feng Yang ◽  
Jean-Noël Beka Be Nguema
Keyword(s):  
Supply Chain ◽  
Organizational Performance ◽  
Operations Management ◽  
Risk Mitigation ◽  
Survey Method ◽  
Organizational Productivity ◽  
Content Type ◽  
Supply Chain Finance ◽  
Research Gap ◽  
The Relationship

Purpose Little is known about the effects of supply chain finance (SCF) adoption on organizational performance (OP). This study aims to address this relevant research gap, and hence draws on the dynamic capability view of the organization under the contingent effect of environmental dynamism (ED) and supply chain risk (SCR) to investigate the effects of SCF adoption on OP. Design/methodology/approach A conceptual framework is developed and then tested using survey with data collected from a cross section of 217 organizations in China. Findings The findings show that SCF significantly mitigates the SCR, which therefore has a strong positive effect on OP (e.g. cost performance and operational performance). Moreover, the findings indicate that when ED is high, then the relationship between SCF and SCR is stronger, whereas when ED is low, the relationship between SCF and SCR is weak. Further, SCR mediates the relationship between SCF and OP. Hypothesis regarding the moderating effect of ED on the paths joining SCF and SCR was also confirmed. SCR has a strong negative effect on OP. However, hypothesis regarding the effect of ED on SCR was rejected. Research limitations/implications This paper has the following limitations. First, the authors conducted the study with organizations in China, which may result in low generalizability. Moreover, the authors used survey method and cross-sectional data design in this paper, which may cause the potential issue of common method bias. However, this research provided some significant theoretical and managerial implications for organizations, practitioners and researchers, while exploring different factors such SCF, SCR and ED, and their effect on organizational output. Practical implications From the managerial perspective, this study provides some relevant new insights to the supply chain managers of organizations. First, the findings of present study guide the organization executives to mitigate their organizations’ risk through risk mitigation strategies such as SCF; optimize their liquidity and working capital while getting the credit at best cost from lenders; and mitigate vulnerability. Second, organizations should adopt vulnerability strategies for improving their capability to respond promptly and cost-effectively toward uncertainties. Third, the perfect identification of factors leading to the adoption of SCF and improving OP are of incredible attractiveness for executives to discover the relevant practice of SCF. Fourth, the results also offer an opportunity to organizations and practitioners, a decision-making approach, to manage which mitigation scheme to be adopted to aid the supply chain practices of mitigation. Moreover, SCF emphasizes that the organization managers’ expand their overall supply chain by getting easy credit and reducing the risk and produce higher organizational productivity. Further, this paper offers a completive advantage for both buyers and suppliers to strengthen their relationships while collaborating with each other. The supply chain executives may explore the level of relationship amongst SCF adoption and their effects on organizational productivity. Therefore, SCF provides equal competitive advantage to both main partners of the supply chain to mitigate the overall risks and improve their competiveness. Originality/value This research fulfilled the research gap in operations management, strategic management, marketing and supply chain management by exploring the effects of SCF adoption as risk mitigation strategy but also as an instrument which can aid organizational to carry out their performance.

scholarly journals The effects of supply chain finance on organizational performance: a moderated and mediated model

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jean-Noël Beka Be Nguema ◽  
Gongbing Bi ◽  
Temidayo O. Akenroye ◽  
Jamal El Baz
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Organizational Performance ◽  
Operational Risk ◽  
Operational Performance ◽  
Equation Modeling ◽  
Survey Method ◽  
Content Type ◽  
Supply Chain Finance ◽  
The Relationship

Purpose This paper aims to draw on the dynamic capabilities approach and aims to empirically investigate the impact of supply chain finance (SCF) on firm performance (e.g. operational risk and operational performance), the critical effect of environmental dynamism (ED) as moderator and supply chain risk (SCR) and a mediator in the relationship between SCF and organizational performance (OP). Design/methodology/approach This study is based on empirical data collected from a survey of 210 companies and their supply chains in mainland China. Structural equation modeling is used to test the proposed relationships. Findings The findings show that SCF significantly mitigates the SCR, which subsequently has a significant positive effect on OP (e.g. operational risk and operational performance). The findings also show that when ED is high, the relationship between SCF and SCR is stronger and vice versa. Moreover, SCR mediates the relationship between SCF and OP. The hypothesis regarding the moderating effect of ED on the paths joining SCF and SCR was also supported. SCR has a significant negative effect on OP. However, the hypothesis regarding the effect of ED on SCR was not supported. Research limitations/implications This study has some limitations. First, this paper conducted the research with Chinese organizations. This may result in low generalizability in other contexts. In addition, this paper used the survey method and cross-sectional data design in this study, which may generate the potential issue of common method bias. However, the findings of this study will help organizations across China and other emerging economies to adopt SCF as a secure financing mechanism to enhance working capital and mitigate risk. In addition, the paper provides some new managerial insights for decision-makers in organizations, while exploring different factors such as SCF, SCR and ED and their effect on the organization. Originality/value This study has greatly developed a general SCF adoption model that helps to guide empirical research investigating the critical impact of SCF on firm performance.

Does supply chain finance improve SMEs performance? The moderating role of trade digitization

2018 ◽  
Vol 26 (1) ◽  
pp. 150-167 ◽  
Author(s):  
Zulqurnain Ali ◽  
Bi Gongbing ◽  
Aqsa Mehreen
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Small And Medium Enterprises ◽  
Risk Mitigation ◽  
Content Type ◽  
Supply Chain Finance ◽  
Using Data ◽  
Medium Enterprises ◽  
The Relationship

Purpose A growing need for financing in small and medium enterprises (SMEs) has become a significant obstacle to the development of firms. To remove this barrier, the purpose of this paper is to examine how supply chain finance (SCF) assists the firms to improve their performance by utilizing the resource-based view (RBV). Furthermore, the present study also pursues to test the effect of trade digitization as a moderating variable in the relationship between SC finance and the firm performance. Design/methodology/approach Using data from the textile sector, the authors run confirmatory factor analysis in AMOS 24 and hierarchical linear regression model in SPSS 23 to measure the proposed model and hypotheses, respectively. Findings The study suggests that SCF significantly improves the SMEs performance. Moreover, trade digitization strengthens the relationship between SCF and SMEs performance. Thus, the current study significantly describes the firm RBV through SCF and trade digitization to predict the SMEs performance. Practical implications SMEs entrepreneurs or executives can optimize the working capital through SCF and enhance the visibility of transactions through digitization for improving SMEs performance. Moreover, SCF protects the SMEs due to its nature of risk mitigation strategy. Originality/value This study covered the unexplored gap in the previous literature of supply chain management by establishing the relationship between SCF and the firm performance empirically while identifying the role of trade digitization as moderating variable in the context of textile SMEs by employing RBV theory.

The relationship between internal supply chain structure and operational performance: survey results from Japanese manufacturers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mikihisa Nakano ◽  
Kazuki Matsuyama
Keyword(s):  
Supply Chain ◽  
Structural Properties ◽  
Operations Management ◽  
Chain Structure ◽  
Operational Performance ◽  
Equation Modeling ◽  
Content Type ◽  
Wide Range ◽  
Supply Chain Structure ◽  
The Relationship

Purpose The purpose of this paper is to discuss the roles of a supply chain management (SCM) department. To achieve that, this study empirically examines the relationship between internal supply chain structure and operational performance, using survey data collected from 108 Japanese manufacturers. Design/methodology/approach Based on a literature review of not only organizational theory but also other fields such as marketing, logistics management, operations management and SCM, this study focused on two structural properties, formalization and centralization and divided operational performance to firm-centric efficiency and customer-centric responsiveness. To examine the analytical model using these dimensions, this study conducted a structural equation modeling. Findings The correlation between centralization of operational tasks and centralization of strategic tasks, the impacts of centralization of both tasks on formalization and the effect of formalization on responsiveness performance were demonstrated. In addition, the reasons for formalization not positively influencing efficiency performance were explored through follow-up interviews. Practical implications Manufacturers need to formalize, as much as possible, a wide range of SCM tasks to realize operational excellence. To establish such formalized working methods, it is effective to centralize the authorities of both operational and strategic tasks in a particular department. In addition, inefficiency due to strict logistics service levels is a problem that all players involved in the supply chain of various industries should work together to solve. Originality/value The theoretical contribution of this study is that the authors established an empirical process that redefined the constructs of formalization and centralization, developed these measures and examined the impacts of these structural properties on operational performance.

Impact of supply chain information sharing on performance of fashion enterprises

2019 ◽  
Vol 32 (6) ◽  
pp. 913-935 ◽  
Author(s):  
Caixia Chen ◽  
Tongyu Gu ◽  
Yuru Cai ◽  
Yixiong Yang
Keyword(s):  
Supply Chain ◽  
Organizational Performance ◽  
Information Sharing ◽  
Life Cycles ◽  
Equation Modeling ◽  
Content Type ◽  
Research Results ◽  
Fashion Brand ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to develop a novel research model to examine the relationship among information sharing (IS), supply chain integration (SCI), operational performance (OP) and business performance (BP) in the fashion supply chains. Design/methodology/approach A survey of 247 executives from Chinese fashion brand firms was conducted and the data were analyzed to investigate how IS affects the organizational BP. Structural equation modeling (SEM) was applied to study the relationship among IS, SCI, OP and BP. Findings The empirical research results indicate that IS is critical to enhance the SCI and OP, and both SCI and OP exert mediating effects on BP of fashion brands. This result also reveals constructive suggestions that allow fashion brands to strengthen their SCI and OP, as well as BP. Research limitations/implications Multiple data sources were applied to develop the sampling frame, and respondents were selected (according to their experience and position) to ensure they had the knowledge and expertise to provide valid response. However, this could not guarantee the adequacy of the sample. This limitation is compounded by the reliance on a simple respondent per firm, which precludes testing for inter-rater reliability. Practical implications The empirical findings provide an enhanced understanding of the relationship among IS, SCI, OP and BP in Chinese fashion brand settings. The research results will help fashion brands to improve supply chain efficiency and enhance company performance. Originality/value Although previous studies have realized that the value of IS varies in different industries, few have specifically explored the impact on the fashion industry characterized by short life cycles, high volatility, low predictability and high impulse purchasing. To fill this knowledge gap, the present study employed a questionnaire survey and SEM techniques to explore the relationship among IS, SCI, OP and BP in the fashion supply chain. Comprehending the impact mechanism of IS on organizational performance can provide useful management insights into the development of effective strategies that allow enterprise to improve BP.

Adoption of supply chain finance by small and medium enterprises in China

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiaobo Li ◽  
Bao Jiang ◽  
Jian Li
Keyword(s):  
Supply Chain ◽  
Small And Medium Enterprises ◽  
Content Type ◽  
Mediating Role ◽  
Supply Chain Finance ◽  
Influence Mechanism ◽  
Behavioural Factors ◽  
Medium Enterprises ◽  
The Relationship ◽  
Adoption Intention

PurposeSupply chain finance (SCF) is a promising financing solution for small and medium enterprises (SMEs). The study aims to highlight the determinants of the adoption of SCF and the theoretical implications for SCF in SMEs.Design/methodology/approachDrawing on the theory of planned behaviour (TPB), the authors develop a model and test hypotheses about the factors (1) SE, (2) attitude toward SCF, (3) social influence (SI), (4) adoption intention (AI) and (5) actual adoption (AA) of SCF. Data collected from a survey of 211 managers in SMEs in China were used to conduct a partial least squares (PLS) estimation.FindingsThe empirical results indicate that attitude toward SCF and SI positively affect AI towards SCF, whereas AI positively affects the AA of SCF. Specifically, the authors find that AI plays a mediating role in the relationship between SE and AA of SCF, whereas attitude toward SCF plays a mediating role between SI and AI.Originality/valueFirst, the authors use the TPB to study the adoption of SCF in SMEs. Second, the authors apply PLS to clarify the influence mechanism of behavioural factors on the adoption of SCF. The authors provide a useful approach for practitioners in examining the adoption of SCF by SMEs.

Supply chain management and organizational performance: the resonant influence

2019 ◽  
Vol 36 (7) ◽  
pp. 1053-1077 ◽  
Author(s):  
Binh An Thi Duong ◽  
Huy Quang Truong ◽  
Maria Sameiro ◽  
Paulo Sampaio ◽  
Ana Cristina Fernandes ◽  
...  
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Organizational Performance ◽  
Hypothetical Model ◽  
Data Set ◽  
Chain Management ◽  
Content Type ◽  
The Impact ◽  
The Relationship ◽  
Insight Into

Purpose A single supply chain management (SCM) practice will have a certain impact on organizational performance (OP). However, since it is placed in a system that many other practices are conducted simultaneously, the practice itself will interact with other ones (i.e. affect/be affected). As a consequence, the efficiency of the affected practice is increased and it is expected to maximize the impact of SCM practices on OP. This mechanism is named the “resonant” influence that is a new approach in the SCM literature. The purpose of this paper is to test the above mechanism toward an insight into the relationship between SCM and OP. Design/methodology/approach Two models were compared: the competitive models only exist in direct effects; and the other contains relationships between practices that are able to show the mechanism of the resonant influence, i.e. the hypothetical model. A data set gained from Vietnamese garment enterprises was used to validate the mechanism of the resonant influence. Findings Empirical evidence from Vietnamese garment sector showed that the competitive models could explain 42.8, 26.3 and 34 percent variance of operational performance, customer satisfaction and financial performance, respectively. In the meantime, the hypothetical model containing the resonant influence is capable to explain 69.5, 33.1 and 57.3 percent. For the impact of each SCM practice on OP, all relationships in the hypothetical model are also greater than those in competitive ones. These results supported the mechanism of the resonant influence. Research limitations/implications This research provides an insight into the relationship between SCM practices and OP. By the resonant influence, the effectiveness of each affected SCM practice itself is magnified and OP is also increased remarkably. Practical implications Understanding the resonant influence, companies can apply this mechanism to enhance effectiveness of SCM practices at the lowest cost. To this end, the SCM practices should be implemented simultaneously as an integrated system rather than independent ones and the structural model proposed in this study is able to be used as “a guide map” for applying this mechanism. Originality/value This is one of pioneer empirical studies in the SCM literature that proposed and validated the concept of “resonant influence.”

The effect of supply chain agility and lean practices on operational performance: a resource-based view and dynamic capabilities perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Umair Manzoor ◽  
Sajjad Ahmad Baig ◽  
Muhammad Hashim ◽  
Abdul Sami ◽  
Hakeem-Ur Rehman ◽  
...  
Keyword(s):  
Supply Chain ◽  
Global Economy ◽  
Dynamic Capabilities ◽  
Operational Performance ◽  
Survey Method ◽  
Resource Based View ◽  
Content Type ◽  
Lean Practices ◽  
Supply Chain Agility ◽  
The Relationship

PurposeIn today's global economy, developing supply chain agility (SCA) and lean practices (LP) as resource-based view and dynamic capabilities are essential for firms to sustain their competitive advantage (CA) and enhance their operational performance (OP). The purpose of this paper is to develop and empirically test a framework to investigate how CA is achieved through SCA and LP and how these, in turn, can enhance a firm's OP.Design/methodology/approachFor data collection, the authors adopted the survey method using self-administered questionnaires. Two-source survey data were collected in two rounds (separated by a two-month lag time) from supply chain managers, operational managers and general managers. The purpose of collecting data in two rounds was to reduce common-method bias. Likert scale (1–5) was used in the questionnaire. Smart PLS 3 and SPSS 23 were used for the data analysis purpose.FindingsSCA was found to directly and positively affect OP. LP also positively affected OP. In addition, CA fully mediated the relationship between SCA, LP and OP.Practical implicationsThis study encourages the managers of manufacturing firms to adapt LP and their supply chains (SCs) to become agile and leverage the advantages of their implementation to improve their OP and succeed in the market.Originality/valueThis study is one of the first to investigate the effect of SCA and LP on OP. Furthermore, the first study examines CA's mediating impact on the relationship between SCA, LP and OP.

Role of compatibility and supply chain process integration in facilitating supply chain capabilities and organizational performance

2019 ◽  
Vol 24 (2) ◽  
pp. 301-316 ◽  
Author(s):  
Rajesh Rajaguru ◽  
Margaret J Matanda
Keyword(s):  
Supply Chain ◽  
Organizational Performance ◽  
Process Integration ◽  
Chain Process ◽  
Content Type ◽  
Mediating Role ◽  
Cultural Compatibility ◽  
Supply Chain Process ◽  
The Relationship

Purpose This study aims to investigate how compatibility between supply chain partners’ technological systems, as well as cultural and operational values, enhance supply chain process integration. Additionally, the paper examines whether supply chain capabilities mediate the relationship between supply chain process integration and organizational performance. The contradictory findings on the relationship between supply chain process integration and organizational performance in prior research point to the need for investigating the possibility of supply chain capabilities having a mediating effect on the link between the two factors. Design/methodology/approach The study used survey data from 302 managers and executives responsible for supply chain functions in food and hardware retailing businesses in Australia. Structural equation modeling (SEM) was used to test the proposed hypotheses, and then Zhao et al.’s (2010) procedure was used to test for mediation effects. Findings The results indicate that technical, operational and cultural compatibility facilitates supply chain process integration. In support of dynamic capabilities theory, the study reveals the importance of integrating resources among supply chain partners to achieve supply chain capabilities, operational and competitive performance. Additionally, the current study found supply chain capabilities to play a mediating role on the relationships between supply chain process integration and organizational performance. Originality/value The paper contributes to supply chain management literature by identifying technical, operational and cultural compatibility as antecedents to supply chain process integration. By revealing the mediating role of supply chain capabilities, the paper highlights how supply chain process integration enhance operational and competitive performance.

Supply chain learning and organizational performance: evidence from Chinese manufacturing firms

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Zia Ul Haq
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Financial Performance ◽  
Organizational Performance ◽  
Manufacturing Firms ◽  
Operational Performance ◽  
Equation Modeling ◽  
Content Type ◽  
Different Types ◽  
The Relationship

Purpose Despite the significance, no study examines the relationship between supply chain (SC) learning components and focal firm performance. This study aims to investigate different types of SC learning (supplier, customer and internal learning) and their influence on the focal firm’s operational and financial performance. Design/methodology/approach Grounded in knowledge-based view and absorptive capacity theory, this study applies structural equation modeling to test the conceptual model based on data collected from 213 manufacturing firms in China. Findings The findings indicate that supplier and customer learning improve internal learning. Customer and internal learning have direct influence on operational performance, whereas internal learning mediates the relationship between supplier learning and operational performance. Moreover, all three dimensions of SC learning do not affect financial performance directly but operational performance plays the mediating role in their relationship. Research limitations/implications This study only investigates SC learning outcomes without exploring its antecedents. In addition, SC learning and their impacts on firm performance are tested empirically with cross-sectional data collected only from manufacturing firms in China. Practical implications The findings furnish managers to seek for competitive advantages through different types of SC learning. Originality/value This study offers new insights concerning the performance implications of SC learning. It divides SC learning into dimensions and shows the distinctive impacts of these dimensions on focal firm’s performance using an empirical method.

Benchmarking the relationship between supply chain risk mitigation strategies and practices: an integrated approach

2020 ◽  
Vol 27 (5) ◽  
pp. 1683-1715 ◽  
Author(s):  
Pradeep Kumar Tarei ◽  
Jitesh J. Thakkar ◽  
Barnali Nag
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Management Practices ◽  
Risk Mitigation ◽  
Real Life ◽  
Integrated Approach ◽  
Mitigation Strategies ◽  
Supply Chain Risk ◽  
Content Type ◽  
The Relationship

PurposeThe purpose of this paper is to explore the relationship between various risk management strategies and risk management practices in order to design and hence enact a suitable supply chain risk mitigation (RM) plan. Additionally, this study proposes a hierarchical framework to explain the mutual relationship between supply chain risk management (SCRM) practices and strategies by considering the underlying dimensions between them.Design/methodology/approachAn amalgamation of systematic literature analysis (SLA) and correspondence analysis (CA) has been performed to develop the conceptual framework. A real-life case of Indian petroleum supply chain has been considered to validate and explain the proposed model.FindingsThe results reveal three underlying dimensions, which associate the relationship between RM strategies. They are, risk adaptability of SC managers with a variance of 34.71%, followed by resource capability of the firm and the degree of sophistication of RM practices, with variances of 27.72 and 20.35%, respectively. Risk avoidance strategy comprises of practices such as supplier evaluation, technology adaption, flexible process and information security. On the other extreme, the risk sharing strategy includes revenue sharing, insurance, collaboration, public–private partnership and so on as essential RM practices.Research limitations/implicationsThe study not only focuses on the distinction between RM strategies and practices, which were used interchangeably in the prior literature, but also provides an association between the same by exploring the underlying dimensions. These underlying dimensions perform a crucial role while developing a risk management plan. This study explicitly focuses on the RM step of SCRM process. Pre and post risk mitigation phases of SCRM process, such as risk assessment and risk monitoring, are beyond the scope of the current research.Originality/valueThe paper develops a framework for mapping various RM strategies with their corresponding practices by considering the Indian petroleum supply chain as a viable case study. Various theoretical and business implications are derived in the context of the developing country.

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