Benefits of the implementation of Supply Chain Financez,1

Qifan Pei, Hing Kai Chan, Tiantian Zhang, Yan Li

Research output: Journal PublicationArticlepeer-review

2 Citations (Scopus)


Supply Chain Finance (SCF), an important way of integrating industry and finance that has emerged in recent decades, has attracted the interest of both industry and academia. A large number of conceptual studies on SCF support the theory that SCF benefits supply chains by alleviating financing problems and maintaining stability. The focal firms which are the main SCF practices provider help alleviating the financing problem of their partners by weakening part of the working capital management. However, SCF-oriented practice on the focal firm and traditional corporate finance theory which earing profit by improving working capital management are not aligned. This paper attempts to provide empirical evidence to explain this phenomenon on the SCF-oriented perspective. Secondary panel data analysis is employed. The impact of focal firms providing SCF services is used to represent SCF practices in the supply chain since focal firms dominate SCF activities. Cash Conversion Cycle (time perspective), trade credit and prepayment (volume perspective) of the focal firms are independent variables of the analysis. Three type of performances, financial, risk and operations, are dependent variables of the analysis. 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. Providing SCF also benefits the firm-level performance of state-owned enterprises. This is the first paper that comprehensively analyses the effects of SCF implementation with different firm characteristics from both a time perspective and a volume perspective.

Original languageEnglish
Pages (from-to)251-283
Number of pages33
JournalAnnals of Operations Research
Issue number1
Early online date28 Feb 2022
Publication statusPublished Online - 28 Feb 2022


  • Cash conversion cycle
  • Prepayment
  • Supply Chain Finance
  • Trade credit

ASJC Scopus subject areas

  • General Decision Sciences
  • Management Science and Operations Research


Dive into the research topics of 'Benefits of the implementation of Supply Chain Financez,1'. Together they form a unique fingerprint.

Cite this