In SCF, the buyers and suppliers in a supply chain enter into agreements to finance supplies to generate working capital benefits for both parties. The finance can be provided by the parties themselves or by banks or other financial institutions. SCF can either be buyer centric, where the buyer gets funded based on his accounts payable or AP, or supplier centric where the supplier gets funded based on his accounts receivable or AR.
Published in Chapter:
Adoption of Blockchain in Supply Chain Financing
Sakuntala Rao (S.P. Jain School of Global Management, Bangalore, India),
Shalini Chandra (S.P. Jain School of Global Management, Bangalore, India), and
Dhrupad Mathur (S.P. Jain School of Global Management, Dubai, UAE)
Copyright: © 2024
|Pages: 27
DOI: 10.4018/979-8-3693-0405-1.ch002
Abstract
This study explores the factors that impact the adoption of blockchain in supply chain financing (SCF). Blockchain's unique features make it a good solution to the current problems in SCF. However, given that both blockchain and SCF are relatively new, there are almost no commercially viable large-scale implementations yet in this area. Research in the factors that drive the adoption of blockchain in SCF, is also scarce. Of the six identified determinants of adoption of blockchain in SCF, the study found four to be significant. Relative advantage, compatibility, organization readiness, and environment readiness influence the adoption of blockchain in SCF. Complexity and technology readiness are insignificant determinants, indicating a technically mature industry capable of handling current blockchain implementations in SCF and associated changes. The authors also found that trust has a mediating effect between compatibility and adoption and between environment readiness and adoption.