scholarly journals Alleviating Financing Constraints of SMEs through Supply Chain

2019 ◽  
Vol 11 (3) ◽  
pp. 673 ◽  
Author(s):  
Yang Yang ◽  
Xuezheng Chen ◽  
Jing Gu ◽  
Hamido Fujita
Keyword(s):  
Supply Chain ◽  
Information Asymmetry ◽  
Private Information ◽  
Developing Economies ◽  
Management Strategies ◽  
External Financing ◽  
Information Structures ◽  
Developed Economies ◽  
Credit Risks ◽  
Risk Management Strategies

Small and medium-sized enterprises play a crucial role in sustaining economic development in both developed economies and developing economies, however, many of them suffer from chronic and structural difficulties in accessing external financing. In this paper, we develop a theoretical framework to illustrate how information structures work in the strategic interactions between banks and firms in a supply chain, and why the transaction information in a supply chain may serve to reduce information asymmetry and improve SMEs’ access to external financing. We find that under incomplete information, the transactions between SMEs and suppliers can serve as signals for banks, which may help banks access the private information of SMEs, thus reducing information asymmetry between them. To maximize profit, banks should dynamically adjust both their interest rate policies and risk management strategies when providing financing services to SMEs, according to the structure of the financial market. The improvement of the external financial environment for SMEs may benefit the entire supply chain, thus facilitating its sustainable development and the growth of SMEs. Our framework sheds light on how SMEs in a supply chain may enhance their survivability and facilitate their development through appropriate strategies to improve business performances and manage credit risks.

Evaluating the Risks Associated with Supply Chain Agility of an Enterprise

2017 ◽  
Vol 4 (3) ◽  
pp. 15-34 ◽  
Author(s):  
Anirban Ganguly ◽  
Debdeep Chatterjee ◽  
Harish V. Rao
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Management Strategies ◽  
Research Process ◽  
Business Environment ◽  
Decision Makers ◽  
Intense Competition ◽  
Agile Supply Chain ◽  
Supply Chain Agility ◽  
Risk Management Strategies

In the present day, business environment marked by intense competition and uncertainties, the ability of an organization and its supply chain to respond quickly to an unforeseen change in the business environment forms the key to its sustenance in the market. Since an agile supply chain comprises of a plethora of components, it is imperative that there should be a set of uncertainties associated with its functioning. The purpose of this paper is to evaluate a set of critical risks associated with the agility of an organization's supply chain. Identification and prioritization of the risks to assess their relative criticality form the backbone of the research process. This research is expected to aid the decision-makers develop robust risk management strategies as related to their organizational supply chain agility, thereby ensuring their growth and sustainability in the market.

Managing transaction risks in interdependent supply chains: an extended transaction cost economics perspective

2012 ◽  
Vol 12 (3) ◽  
pp. 243-260 ◽  
Author(s):  
Mark Wever ◽  
Nel Wognum ◽  
Jacques Trienekens ◽  
Onno Omta
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Supply Chains ◽  
Transaction Cost ◽  
Risk Sharing ◽  
Transaction Cost Economics ◽  
Management Strategies ◽  
Risk Minimization ◽  
Risk Management Strategies ◽  
Supply Chain Orientation

The present study examines the management of transaction risks in supply chains. Risk management studies often ignore the wider supply chain context in which individual transactions take place. However, risk management strategies which are suitable to use when only a single transaction is considered may be inappropriate when other transactions in the supply chain are taken into account. This study addresses this issue by examining: (1) how risks arise as a result of interdependencies between the various transactions making up the supply chain; and (2) what types of contractual-based strategies actors can use to manage their risk exposure. To realize these aims, the study applies an extended Transaction Cost Economics (TCE) framework with a supply chain orientation. The framework illustrates how different types of interdependencies - pooled, sequential and reciprocal - expose companies to different sources of risk. Three strategies companies can use when facing barriers to risk minimization in sequentially interdependent supply chains are analyzed: risk transferring, risk altering and risk sharing. Examples from the agri-food sector are discussed to demonstrate the functioning of these strategies.

scholarly journals House of risk approach for assessing supply chain risk management strategies: A case study in Crumb Rubber Company Ltd

2018 ◽  
Vol 154 ◽  
pp. 01097 ◽  
Author(s):  
Taufiq Immawan ◽  
Dea Kusuma Putri
Keyword(s):  
Supply Chain ◽  
Negative Impact ◽  
Phase 1 ◽  
Management Strategies ◽  
Crumb Rubber ◽  
Supply Chain Risk Management ◽  
Phase 2 ◽  
Risk Management Strategies ◽  
Risk Approach ◽  
Risk Handling

Risk is an uncertain and can have both negative and positive impacts. If the risks have a negative impact then a company will incur losses. CRUMB RUBBER COMPANY LTD is one of crumb rubber company in West Kalimantan. The length of the supply chain contained in CRUMB RUBBER COMPANY LTD and the high dependence on suppliers leads to vulnerability. So the purpose of this research is to identify the risk and determine the priority of source of risk along with the priority of handling it on CRUMB RUBBER COMPANY LTD supply chain with House of Risk approach. House of risk approach consists of two phases. Phase 1 is used to determine the dominant risk agent and phase 2 determines the effective action to deal with the dominant risk agent. From the research results, there are 19 risk events and 29 risk agents identified. The result of house of risk in phase 1 is known that 13 of 28 risk agents are dominant risk agent. Then the priority handling strategy in house of risk in phase 2, in this phase obtained 18 priority risk handling strategies.

Risk Management Strategies in International Markets

2020 ◽  
pp. 27-52
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Management Strategies ◽  
International Markets ◽  
Interest Rate Risk ◽  
Operating Cycle ◽  
Credit Risks ◽  
Financial Costs ◽  
Risk Management Strategies ◽  
Exchange Risk

On an operational level, companies with processes of internationalization are confronted with credit risks, interest rate risks, and foreign exchange risks in trade and financial operations that they perform daily within their operating cycle, transforming sometimes great opportunities into financial catastrophes. As these risks strongly affect companies' normal activities in international markets through higher financial costs arising from receipts that don't occur, from unfavorable exchange differences or negative evolution's in the interest rates, different strategies to manage these risks will next be addressed. At first, the payment techniques and sources of financing in international trade that allow to mitigate the credit risk and to protect the company's treasury will be presented. Then, the techniques to hedge exchange risk and interest rate risk will be studied to highlight how they could improve the international businesses' margins.

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