Abstract

Purpose In this study, we examine the implementation of purchase order finance (POF) which is an innovative supply chain finance (SCF) solution by an innovative SCF lender (i.e. supply chain service provider (SCSP)). The effect of information integration between the SCSP (lender) and product designers (borrowers) on the lender's POF decisions and the borrowers' new product launch is investigated. Design/methodology/approach We conduct a case study in the Chinese smartphone industry. A mixed methods design is used, and data are collected from both the supply chain service provider (SCSP) and product designers. We first conduct a qualitative study. Hypotheses are developed concerning the relationships between information integration, in terms of social interaction and information system integration, POF and new product launch. We then conduct a quantitative study. The multilevel structural equation modelling method is used to test the hypotheses. Findings We find that information system integration is positively associated with POF but has no significant effect on new product launch. Social interaction is negatively associated with POF but positively associated with new product launch. POF is positively associated with new product launch. Originality/value This study contributes to the literature by empirically examining the implementation of POF from both the lender's and borrower's perspectives. We find that information system integration and social interaction have different effects on POF and new product launch. The results thus provide insights into how a lender makes POF decisions and reveal the benefits of POF for borrowers.

Keyword

Information integration ;  Mixed methods research ;  New product launch ;  Purchase order finance ;  Supply chain finance

Abstract

Keyword

information integration ;  mixed method research ;  product innovation performance ;  supply chain finance

Abstract

Purpose The purpose of this paper is to empirically investigate the joint effects of lead time, information sharing and the accounts receivable period on reverse factoring (RF) adoption from the suppliers' perspective. Design/methodology/approach Supported by one of the largest commercial banks in China, survey data are collected from 424 Chinese manufacturing firms and analyzed using regression methods. Findings The results suggest that lead time positively affects suppliers' RF adoption directly and indirectly through the accounts receivable period. Meanwhile, information sharing has a positive, direct and a negative, indirect influence on suppliers' RF adoption. Originality/value The findings give suppliers and financial institutions a better understanding of how to leverage the benefits of RF.

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