IDEAS home Printed from https://ideas.repec.org/a/eme/caerpp/caer-06-2018-0132.html
   My bibliography  Save this article

Does network governance based on banks’ e-commerce platform facilitate supply chain financing?

Author

Listed:
  • Zhixin Chen
  • Jian Chen
  • Zhonggen Zhang
  • Xiaojuan Zhi

Abstract

Purpose - The purpose of this paper is to provide a framework to illustrate how network governance based on banks’ e-commerce platform reduces loan risks and mitigates credit rationing in supply chain financing (SCF). Design/methodology/approach - The authors conceptualize network governance in terms of authority structure and interorganizational mechanism dimensions, and derive the model of its determinants through arguments drawn from the existing literature. Structural equation modeling is employed to test the theoretical model on data collected from a sample of 271 independent supply chain trading partners in rural China. Findings - The findings indicate that network governance based on banks’ e-commerce platform could integrate the operations and finances in supply chain management to solve the problems of information asymmetry, costly monitoring, insufficient qualified collaterals and mitigate farmers’ credit rationing. The collaborative credit-granting mechanism and collaborative debt enforcement mechanism formed by the authority structure and interorganizational mechanisms are the key factors to realize the complete compatibility of incentives. The bank e-commerce platform can provide a foundation for the authority structure and interorganizational mechanisms to enhance the predictability of applicants’ transaction and then safeguard the financial exchanges in supply chain. Practical implications - The research results indicate that it is important to support farmers to establish long-term transaction relationships with leading enterprises through organizational innovation in the development of agricultural industrialization and build a visualization platform for SCF through technological innovation. Originality/value - This paper contributes to the limited knowledge about network governance mechanisms in SCF by illustrating the model of network governance based on banks’ e-commerce platform and its determinants.

Suggested Citation

  • Zhixin Chen & Jian Chen & Zhonggen Zhang & Xiaojuan Zhi, 2019. "Does network governance based on banks’ e-commerce platform facilitate supply chain financing?," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 11(4), pages 688-703, June.
    • Handle: RePEc:eme:caerpp:caer-06-2018-0132
    DOI: 10.1108/CAER-06-2018-0132
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/CAER-06-2018-0132/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/CAER-06-2018-0132/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/CAER-06-2018-0132?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yuehua Xia & Honggen Long & Zhi Li & Jiasen Wang, 2022. "Farmers’ Credit Risk Assessment Based on Sustainable Supply Chain Finance for Green Agriculture," Sustainability, MDPI, vol. 14(19), pages 1-20, October.
    2. Xinli Li & Junzhou Yan & Jun Cheng & Jiaying Li, 2023. "Supply-Chain Finance and Investment Efficiency: The Perspective of Sustainable Development," Sustainability, MDPI, vol. 15(10), pages 1-17, May.
    3. Shizhen Bai & Xuelian Jia, 2023. "The Impact of the Cost-Sharing Contract on Capital-Constrained Agricultural Supply Chains," SAGE Open, , vol. 13(1), pages 21582440231, February.
    4. Zhuoqi Teng & Yugang He & Renhong Wu, 2022. "E-Commerce: Does Sustainable Logistics Development Matter?," Sustainability, MDPI, vol. 15(1), pages 1-17, December.
    5. Xiaojing Li & Apurbo Sarkar & Xianli Xia & Waqar Hussain Memon, 2021. "Village Environment, Capital Endowment, and Farmers’ Participation in E-Commerce Sales Behavior: A Demand Observable Bivariate Probit Model Approach," Agriculture, MDPI, vol. 11(9), pages 1-20, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:caerpp:caer-06-2018-0132. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.