In the development of SCF research and practice, there is growing interest in how SCF solutions help to promote SC sustainability performance. However, the research on sustainable SCF (SSCF) remains scant; both scholars and managers have not fully realized the significant economic, environmental, and social value behind this concept. This study, based on a systematic literature review of 47 articles related to SCF and sustainability, summarizes SSCF motives, practices and outcomes. In addition, to further investigate this emerging topic, this review discusses how SSCF solutions may help to drive sustainable SC enablers as well as mitigate sustainable SC barriers, which, in turn, improves sustainable SC performance.
Current state of research
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.
Win-Win and No-Win Situations in supply chain finance: the case of accounts Receivable programs
- The chapter also discusses the important role of the official sector in the FX market, and it highlights a few special topics such as flash events and the FX fixing scandal.
- Total volume of the supply chain finance solutions including trade credit and prepayments.
- The solutions created to address these needs gave rise to the fast growing field of supply chain finance (SCF) (Gelsomino et al., 2016, More and Basu, 2013).
- 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).
- 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.
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.
The relationship between sustainable procurement and e-procurement in the public sector
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, 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.
The effects of bargaining power on trade credit in a supply network
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.
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 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.
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).
At the same time, technological advances are changing the shape of the overall business ecosystem in which SCF is embedded. Therefore, the aim of this research is to conduct a systematic review of the SCF literature and develop a framework of analysis to support further exploration of the SCF ecosystem. This research expands on other recent systematic reviews A Contribution to the SCF Literature of SCF literature and introduces the business ecosystem concept to the SCF domain. Based on the presented SCF framework, an agenda for future SCF ecosystem research is proposed. Inspired by Serpa and Krishnan (2018), Kim and Henderson (2015), and Lanier et al. (2010), we link (focal) companies based on secondary data to their major customers and suppliers.
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.
Furthermore, this review provides a working definition of SSCF based on the results of literature review. SSCF refers to innovative SCF solutions that can either incentivize and reward the sustainable performance of suppliers and/or retailers, thus facilitating the enablers and mitigating barriers towards sustainable SCM practice, and therefore improve the sustainable performance of the entire supply chain. Companies found themselves looking for solutions to their https://forexarena.net/ liquidity and working capital needs, in an environment with restricted access to capital (Caniato et al., 2016, Gelsomino et al., 2016, Liebl et al., 2016). The solutions created to address these needs gave rise to the fast growing field of supply chain finance (SCF) (Gelsomino et al., 2016, More and Basu, 2013). While supply chain finance (SCF) is receiving growing attention in research, it remains limited in reach and fragmented in its implementation.
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).
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.
Supply chain finance (SCF) can play a role in improving supply chain (SC) sustainability. That is why academics have started investigating the connection between SCF and sustainable SC management, and practitioners have begun developing new SCF solutions with a sustainable orientation. Although SCF solutions have been suggested as supporting tools for the diffusion of sustainability within SCs, academic contributions have only partially investigated sustainable SCF (SSCF).
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