Supply chain network and financing performance of small and medium enterprises in China: a survey and quasi-replication using fuzzy-set qualitative comparative analysis
ISSN: 1746-5265
Article publication date: 20 July 2021
Issue publication date: 5 October 2021
Abstract
Purpose
This paper examines how weak ties and strong ties in the supply chain network influence the financing performance of small and medium enterprises (SMEs) through the mediation of information sharing and innovation capability.
Design/methodology/approach
Questionnaires were administered to 208 financial managers responsible for supply chain finance in SMEs in China. Data analysis techniques used included multiple regression analysis and fuzzy-set qualitative comparative analysis.
Findings
The authors found that weak ties had a more substantial impact on the financing performance of SMEs than strong ties did. Information sharing and innovation capability played a mediating role between weak and strong ties and the financing performance of SMEs. In addition, information sharing and innovation capability complement each other and jointly influence the financing performance of SMEs.
Practical implications
SMEs are suggested to actively embed themselves in the supply chain network to increase financing opportunities and reduce financing costs. The authors also recommend SMEs to enhance the level of their information sharing in the supply chain network and take advantage of their network ties to access and adopt new technology from other organisations and conduct collaborative innovation with partner institutions.
Originality/value
The paper extends the authors’ understanding of supply chain finance by exploring the intrinsic mechanism of how various constructs (weak ties, strong ties, information sharing and innovation capability) in the supply chain network have an impact on the financing performance of SMEs. In particular, the authors explore the under-researched mediating effect of information sharing and innovation capability on the relationship between network ties and the financing performance of SMEs.
Keywords
Acknowledgements
Funding: The research was supported by the National Natural Science Foundation of China (No. 71902007), Beijing Natural Science Foundation (No. 9204022), Beijing Social Science Foundation (No. 19GLC075), National Social Science Foundation of China (No. 21AZD015).
Citation
Lu, Q., Deng, Y., Yu, M., Song, H. and Liu, B. (2021), "Supply chain network and financing performance of small and medium enterprises in China: a survey and quasi-replication using fuzzy-set qualitative comparative analysis", Baltic Journal of Management, Vol. 16 No. 5, pp. 785-803. https://doi.org/10.1108/BJM-09-2020-0331
Publisher
:Emerald Publishing Limited
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