Supply chain finance, financial constraints and corporate performance: An explorative network analysis and future research agenda

Item Type Journal paper
Abstract

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. Based on the SCF-oriented school of thought, we subject propositions regarding the relationship between working capital and corporate performance from prior WCM research to explorative empirical testing. In doing so, we raise awareness of factors that have yet to be tested. We derive methodological implications for conducting interorganizational studies in the field of SCF and outline a future research agenda. The explorative results indicate (i) the existence of a profit-maximizing level of working capital, (ii) superior performance of companies adopting an SCF-oriented WCM approach, (iii) higher profit-maximizing levels of working capital for focal companies facing financially constrained supply chain partners, (iv) a positive performance impact of efficient inventory management, and (v) differentiated payment strategies toward up- and downstream supply chain partners.

Authors Wetzel, Philipp & Hofmann, Erik
Journal or Publication Title International Journal of Production Economics
Language English
Subjects business studies
economics
finance
HSG Classification contribution to scientific community
HSG Profile Area SoM - Business Innovation
Refereed Yes
Date 5 July 2019
Publisher Elsevier
Volume 216
Page Range 364-383
Number of Pages 20
ISSN 0925-5273
Publisher DOI https://doi.org/10.1016/j.ijpe.2019.07.001
Depositing User M.A. HSG Philipp Wetzel
Date Deposited 11 Jul 2019 13:00
Last Modified 15 Jul 2019 08:56
URI: https://www.alexandria.unisg.ch/publications/257328

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Citation

Wetzel, Philipp & Hofmann, Erik (2019) Supply chain finance, financial constraints and corporate performance: An explorative network analysis and future research agenda. International Journal of Production Economics, 216 364-383. ISSN 0925-5273

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https://www.alexandria.unisg.ch/id/eprint/257328
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