This study found that a focal firm providing SCF can conditionally improve their firm’s financial performance, risk levels and operations management. Results from different industrial analyses suggest that tertiary industries are best suited to implementing SCF activities. This is the first paper that comprehensively A Contribution to the SCF Literature analyses the effects of SCF implementation with different firm characteristics from both a time perspective and a volume perspective. Supply chain finance (SCF) as an effective method for improving supply chain (SC) financial performance has attracted attention from both academics and industries in recent years.

‘To fund’ as a new purpose of supply chain management: making a case for supply chain financing

Supply chain finance practices and techniques that support trade transactions, in a manner that minimizes negative impacts and creates environmental, social, and economic benefits for all stakeholders involved in bringing products and services to markets. Total volume of the supply chain finance solutions including trade credit and prepayments. Z,1 An early version of this paper was submitted to the FinTech & Shadow Banking in China 2019 Conference (Pei et al. 2019a). This is the extended version that empirically evaluates the benefits of providing SCF for firm performance. In addition, the detailed performance resulting from implementing SCF with respect to the time perspective (Pei, et al., 2019b) has been presented at the APIEMS conference.

The effects of bargaining power on trade credit in a supply network

By addressing these research questions, we contribute to current WCM and SCF literature in the following ways. First, we subject theoretical propositions from prior WCM research to explorative empirical testing and raise awareness of untested factors in the relationship between working capital and corporate performance. Second, responding to the call from Viskari and Kärri (2012); Busi and Bititci (2006); Protopappa-Sieke and Seifert (2017), we examine the performance impacts of collaborative WCM approaches in an interorganizational supply chain network context. Third, by underpinning our theoretical claims with new evidence regarding the relationship between investment in working capital and corporate performance, we make a methodological contribution to the growing body of SCF research.

Financing constraints, major business performance, and return on financial assets

Both SCF and the related field of Financial Supply Chain Management (FSCM) each currently lack a generally accepted definition, with multiple variations existing (Gelsomino et al., 2016). In the reviewed literature the two terms (SCF and FSCM) have been used with varying definitions by different authors. This chapter discusses the structure and functioning of the spot foreign exchange (FX) market. The market structure, which has become far more complex over the past three decades, has mostly evolved endogenously as the global FX market is subject to notably less regulatory oversight than equity and bond markets in most countries. Major banks used to dominate liquidity provision but they have found their role challenged by High Frequency Trading firms in an increasingly fragmented electronic market.

Optimal selection of supply chain financing programmes for a financially distressed manufacturer

Based on the descriptive and thematic findings, this review then develops a conceptual framework that facilitates the conceptual development of SSCF. Finally, it identifies gaps in the existing literature and provides recommendations for future research. In this paper, we examine the functional form of the relationship between working capital assets and corporate performance beyond the traditional single-company perspective. In particular, we explore how a focal company’s adequate level of working capital is influenced by the presence of limited financial resources along the supply chain. Moreover, we investigate the performance impact of supply chain finance (SCF)-oriented working capital management (WCM) approaches.

• Supply Chain Financing (SCF) is becoming an increasingly common vertical within the banking industry.
• Methodologically, we build on past WCM research and apply a quadratic model to estimate our parameters (Baños-Caballero et al., 2014; Afrifa, 2016; Afrifa and Padachi, 2016).
• In particular, we explore how a focal company’s adequate level of working capital is influenced by the presence of limited financial resources along the supply chain.
• In section 3, we describe the methodological approach and data used in our examination.
• To extend the scope to identify articles relating to SCF in the sustainability context, this paper adopts the approach to a systematic literature review proposed by Tranfield et al. (2003).

Managing technological and social uncertainties of innovation: the evolution of Brazilian energy and agriculture

Beyond that, we gather financial data regarding a focal company’s up- and downstream supply chain partners. Methodologically, we build on past WCM research and apply a quadratic model to estimate our parameters (Baños-Caballero et al., 2014; Afrifa, 2016; Afrifa and Padachi, 2016). However, due to the dynamic nature of supply chain networks, we do not employ a panel data regression, but rather a cross-sectional regression analysis. A second goal of this study is to analyze how the presence of financial constraints along the supply chain influences a focal company’s performance-maximizing level of working capital. There is general agreement in SCM research that firms do not operate in isolation but are bound by the structure of the network in which they operate (Carnovale et al., 2019).

Section 3 describes the research method and details the search terms and literature selection process. Section 5 provides an in-depth discussion of the effects of SCF on sustainability enablers and barriers to sustainable SC management (SCM). Then, on the basis of the findings and discussion, we propose an integrated conceptual framework for SSCF. Section 6 discusses the identified research gaps in the current literature and provides recommendations for future research. Section 4 provides a discussion of the findings and proposes an agenda for future research.

The purpose of this paper is to analyze recent research on the overlap between SCF and sustainability. To extend the scope to identify articles relating to SCF in the sustainability context, this paper adopts the approach to a systematic literature review proposed by Tranfield et al. (2003). Against this background, the first goal of this study is to analyze the functional form of the relationship between working capital and corporate performance beyond the traditional single-company focus, extending the modeling perspective to the interorganizational supply chain network level. This is consistent with recent calls for more empirical research examining how working capital is optimally allocated in a supply chain network to improve operational performance (Gupta and Dutta, 2011; Protopappa-Sieke and Seifert, 2017). The focus of this study therefore lies outside the traditional scope of core WCM research and can yield valuable findings, enlarging the body of WCM to SCF research. The supply chain finance (SCF) domain has made remarkable progress, evolving into a well-recognised and accepted literature stream within purchasing and supply chain management (PSCM) from its nascent stages in the late 2000s.

Resource dependency theory posits not only that cross-company collaboration leads to significant value creation but also that a company’s extended network is a vital source for gaining access to informational, physical, and financial resources (Galaskiewicz, 2011). However, research on the relationship between (net) working capital and corporate performance has yet to consider how limited access to financial resources along the supply chain impacts a (focal) company’s performance-maximizing level of working capital. However, few studies have analyzed working capital assets (accounts receivable, accounts payable, and inventories) in an interorganizational supply chain setting (Farris and Hutchison, 2002; Randall and Farris, 2009; Hofmann and Kotzab, 2010).

The Visualisation of Similarities (VOSviewer) software was employed to perform a co-occurrence analysis of all publication trends, leading authors, and keywords. A bibliometric analysis was conducted on the top documents, authors, sources, and affiliations; cluster and content analyses of the most influential papers published in Scopus to discover the main streams and themes in SCF. The results of the analysis show that SCF is an interdisciplinary research area that intersects sustainability, management, mathematical models, economics, etc. The findings are significant as they can help managers focus on technological advancements, supply chain flexibility tactics, and the aptitude of organisations for continued success and alignment with Industry 4.0.

The Z-Score formula uses multiple accounting ratios, such as liquid assets, earning power, operating efficiency, leverage and total asset turnover, to measure the financial health of a firm. Current ratio is liquidity and efficiency ratio that measures a company’s financial health by determining if it has ability to pay short-term obligations. The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper. Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

This paper investigates those aspects through multiple international exploratory case studies. The results confirm that SCF solutions become sustainable by integrating different SC sustainability practices, either embedded in the SSCF solutions or reinforced by the implementation of the solutions. Moreover, https://forexarena.net/ involving new actors, including third-party information providers, NGOs, and certification bodies, who assume different brokerage roles, positively influences the development of SSCF solutions. Following the introduction, Section 2 describes the necessity or rationale for combining SCF and sustainability.