Effect of supplier-buyer cooperation on supply chain financing availability of SMEs

ABSTRACT

This study aims to explore the influence of supplier-buyer cooperation (contract governance and relationship governance) on supply chain financing availability from the bilateral perspective of small and medium-sized enterprises and their suppliers (or buyers) based on the transaction cost theory. A total of 248 valid paired questionnaires were received from small and medium enterprises and their suppliers (or buyers). Multiple regression analysis was used to test the hypotheses. The results show that: (1) contract governance is more effective than relationship governance on supply chain financing availability, and the two forms of governance have a positive interaction effect. (2) Opportunism plays a mediating role between supplier-buyer cooperation and supply chain financing availability. Contract governance improves supply chain financing availability more strongly than relationship governance, by reducing supply chain financing risks. (3) Financing alignment has a positive moderating effect on the relationship between opportunism and supply chain financing availability.

KEYWORDS:

• Supply chain finance
• supplier-buyer cooperation
• relationship governance
• contract governance
• opportunism
• financing alignment

Acknowledgments

The research underlying this paper was supported by the National Natural Science Foundation of China (No. 71902007), Beijing Natural Science Foundation (No. 9204022), Beijing Social Science Foundation (No. 19GLC075) and Social Science Program of Beijing Municipal Education Commission (No. SM202010011005).

Disclosure statement

No potential conflict of interest was reported by the authors.

Availability of data and materials

The datasets used and/or analysed during the current study can be provided on reasonable request.

Additional information

Funding

This work was supported by National Natural Science Foundation of China [grant number 71902007]; Beijing Natural Science Foundation [grant number 9204022]; Beijing Social Science Found Project [grant number 19GLC075].