What role do FinTech companies play in supply chain finance? A signaling intermediary perspective
Journal of Business & Industrial Marketing
ISSN: 0885-8624
Article publication date: 5 October 2022
Issue publication date: 25 April 2023
Abstract
Purpose
The purpose of this paper is to explore the role of FinTech companies in SCF. The application of digital technology in supply chain activities has facilitated the evolution of supply chain finance (SCF) to a new level. However, how financial technology (FinTech) companies promote this evolution has not been thoroughly examined.
Design/methodology/approach
This research used the multiple-case study approach and social network analysis method to explore how FinTech companies influence SCF networks.
Findings
The results reveal that FinTech companies play the crucial role of a signaling intermediary by facilitating interactions among relevant parties, accelerating the flow of information and reducing information asymmetry arising from data smog. Moreover, FinTech companies make SCF information networks more equitable and promote the performance of SCF.
Originality/value
This study deepens the conversation at the nexus of signal theory and SCF and provides managerial implications for alleviating information asymmetry between borrowers and lenders to solve the difficulty and high-cost problems of obtaining financing of small- and medium-sized enterprises.
Keywords
Acknowledgements
Funding: This work was supported by the Fundamental Research Funds for the Central Universities, and the Research Funds of Renmin University of China (21XNH128).
Citation
Song, H., Han, S., Liu, W. and Ganguly, A. (2023), "What role do FinTech companies play in supply chain finance? A signaling intermediary perspective", Journal of Business & Industrial Marketing, Vol. 38 No. 6, pp. 1279-1294. https://doi.org/10.1108/JBIM-12-2021-0587
Publisher
:Emerald Publishing Limited
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