How can SMEs acquire supply chain financing: the capabilities and information perspective

Abstract

PurposeThis paper aims to explore how innovation capability and market response capability of small and medium-size enterprises (SMEs) affect their supply chain financing performance (SCFP) through supply chain financing solutions (SCFS) adoption. At the same time, the mechanism by which supply chain financing reduces information asymmetry before (ex-ante) and after (ex-post) SCFS adoption to promote SCFP is also inquired.Design/methodology/approachDrawing on enterprise competence theory, this paper proposes a theoretical model and tests it using survey data from a sample of 218 SMEs in China. Multiple regression analysis is employed to test the hypothesis.FindingsThe study finds that: (1) SMEs' innovation capability and market response capability positively affect SCFP. (2) SMEs' innovation capability and market response capability exert significantly positive effects on SCFS adoption. (3) SCFS adoption plays a mediating role between SME capabilities and SCFP. (4) Supply chain integration (SCI) and information technology application have no moderating effects on the relationship between SME capabilities and SCFS adoption. Finally, (5) SCI and information technology application have positive moderating effects on the relationship between SCFS adoption and SCFP.Originality/valueBased on enterprise competence theory, this study sheds light on the internal mechanism through which SMEs' capabilities affect SCFP by introducing SCFS adoption and explores the role of situational factors in SCF in reducing ex-ante and ex-post information asymmetry. This study provides an innovative theoretical perspective on supply chain financing and enriches the existing research.

How different types of financial service providers support small- and medium- enterprises under the impact of COVID-19 pandemic: from the perspective of expectancy theory

“…For example, the items of total assets in the last fiscal year are designed according to Standard Provisions on the Classification of Financial Enterprises from the People’s Bank of China. The items of changes in financing volume are developed by referring to the measurement of financial performance in Gomm ( 2010 ) and Lu et al ( 2020 ). Meanwhile, some items of the indicators are proposed directly through development and scrutiny by experts.…”

“…500 – 4000 billion; J. > 4000 billion Single choice Financing volume to SMEs in the last fiscal year Gomm 2010 ; Lu et al 2020 To design the specific scale based on professional experience What are the financing volume to SMEs in the last fiscal year? (in RMB) A.…”

“…Allow the increase of risk tolerance E4. Allow online account opening Financing valence Changes of financing volume Gomm 2010 ; Lu et al 2020 ; Ongore and Kusa 2013 Adopt How will the financing volume to SMEs change in your company during/after the pandemic? A. Comprehensively decrease B.…”

“…A. Comprehensively decrease B. Most decrease, some increase C. Remain unchanged D. Most increase, some decrease E. Comprehensively increase Single choice/ 5-point Likert Scale Changes of financing rate Gomm 2010 ; Lu et al 2020 How will the financing rate change during/after the pandemic? A. Comprehensively decrease B.…”

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“…(Q. Lu, Liu, & Song, 2020) defined small and medium enterprises as those projects that build something of value from nothing, as well as that seize opportunities based on resources and resources, and within a specific vision, taking into account the assessment of risks. Small and medium enterprises are the components of productivity, growth, innovation, flexibility, creativity and dynamism of risk-taking.…”