Does supply chain finance adoption improve organizational performance? A moderated and mediated model
Authors: Bi Zhen , Yang Feng , Beka Be Nguema Jean-Noël 
Published: August 2021

Purpose
Little is known about the effects of supply chain finance (SCF) adoption on organizational performance (OP). This study aims to address this relevant research gap, and hence draws on the dynamic capability view of the organization under the contingent effect of environmental dynamism (ED) and supply chain risk (SCR) to investigate the effects of SCF adoption on OP.

Design/methodology/approach
A conceptual framework is developed and then tested using survey with data collected from a cross section of 217 organizations in China.

Findings
The findings show that SCF significantly mitigates the SCR, which therefore has a strong positive effect on OP (e.g. cost performance and operational performance). Moreover, the findings indicate that when ED is high, then the relationship between SCF and SCR is stronger, whereas when ED is low, the relationship between SCF and SCR is weak. Further, SCR mediates the relationship between SCF and OP. Hypothesis regarding the moderating effect of ED on the paths joining SCF and SCR was also confirmed. SCR has a strong negative effect on OP. However, hypothesis regarding the effect of ED on SCR was rejected.

Research limitations/implications
This paper has the following limitations. First, the authors conducted the study with organizations in China, which may result in low generalizability. Moreover, the authors used survey method and cross-sectional data design in this paper, which may cause the potential issue of common method bias. However, this research provided some significant theoretical and managerial implications for organizations, practitioners and researchers, while exploring different factors such SCF, SCR and ED, and their effect on organizational output.

Practical implications
From the managerial perspective, this study provides some relevant new insights to the supply chain managers of organizations. First, the findings of present study guide the organization executives to mitigate their organizations’ risk through risk mitigation strategies such as SCF; optimize their liquidity and working capital while getting the credit at best cost from lenders; and mitigate vulnerability. Second, organizations should adopt vulnerability strategies for improving their capability to respond promptly and cost-effectively toward uncertainties. Third, the perfect identification of factors leading to the adoption of SCF and improving OP are of incredible attractiveness for executives to discover the relevant practice of SCF. Fourth, the results also offer an opportunity to organizations and practitioners, a decision-making approach, to manage which mitigation scheme to be adopted to aid the supply chain practices of mitigation. Moreover, SCF emphasizes that the organization managers’ expand their overall supply chain by getting easy credit and reducing the risk and produce higher organizational productivity. Further, this paper offers a completive advantage for both buyers and suppliers to strengthen their relationships while collaborating with each other. The supply chain executives may explore the level of relationship amongst SCF adoption and their effects on organizational productivity. Therefore, SCF provides equal competitive advantage to both main partners of the supply chain to mitigate the overall risks and improve their competiveness.

Originality/value
This research fulfilled the research gap in operations management, strategic management, marketing and supply chain management by exploring the effects of SCF adoption as risk mitigation strategy but also as an instrument which can aid organizational to carry out their performance.