Can SMEs' quality management promote supply chain financing performance? An explanation based on signalling theory

Abstract

Purpose

The purpose of this study is to examine how the quality management of small and medium-sized enterprises (SMEs) impacts their supply chain financing performance (SCFP). This study also investigates the mediating roles of organisational dependence between quality management and the SCFP of SMEs, as well as the moderating role of environmental dynamics.

Design/methodology/approach

Questionnaires were administered to 248 financial managers responsible for supply chain finance (SCF) in SMEs in China. Data analysis techniques used include necessary condition analysis and multiple regression analysis.

Findings

Research findings show that, in SCF, the quality management of SMEs positively predicts their SCFP through the mediation of the organisational dependence of the focal enterprises in the supply chain network. Environmental dynamics are also found to moderate the relationship between quality management and SCFP through the organisational dependence of capital providers.

Originality/value

To the best of our knowledge, this is the first study to explore the relationships between SMEs' quality management and their SCFP. Also, this study provides a new theoretical lens through which to study SCF by introducing signalling theory.

Citation

Lu, Q., Yang, Y. and Yu, M. (2024), "Can SMEs' quality management promote supply chain financing performance? An explanation based on signalling theory", International Journal of Emerging Markets, Vol. 19 No. 7, pp. 1981-2002. https://doi.org/10.1108/IJOEM-03-2022-0456