THE ROLE OF SUPPLY CHAIN FINANCE (SCF) PLATFORMS IN MITIGATING FINANCIAL RISK AND IMPROVING RESILIENCE

Abstract

In the last decade, global supply chains have faced severe stress due to crises such as the COVID-19 pandemic, geopolitical conflicts, and climate-related disasters. The World Economic Forum (2023) reports that 92% of international firms experienced major disruptions, resulting in annual revenue losses exceeding 6%. Financial fragility—particularly among small and medium-sized enterprises (SMEs)—has been identified as a key barrier to supply chain resilience, with McKinsey (2022) noting that 68% of disruptions stem from late payments and limited access to credit. Supply Chain Finance (SCF) has emerged as a critical mechanism for enhancing resilience by aligning payment terms and liquidity flows among supply chain stakeholders. Modern SCF platforms increasingly leverage technologies such as blockchain and real-time data analytics, which have been shown to reduce payment delays by 47% and increase supplier survival rates by 32% during recent supply shocks. This study investigates the causal relationship between SCF adoption and supply chain resilience, with particular attention to the moderating role of digital infrastructure. Using text-based analytical methods applied to A-share listed firms, the results indicate that higher levels of SCF engagement significantly enhance supply chain resilience, as reflected by a negative coefficient significant at the 1% level. The underlying mechanisms include improved liquidity provision, reduced credit and information asymmetry, and stronger integration of financial and operational flows. The findings suggest that while SCF platforms are effective enablers of supply chain resilience, their impact depends on robust digital infrastructure and well-aligned governance mechanisms. Future research should further examine contextual conditions shaping SCF effectiveness.