Small and medium-sized enterprises’ path to sustainable supply chains: exploring the role of supply chain finance and risk management

Abstract

Purpose

This paper aims to investigate the triangular interconnections among supply chain finance (SCF), supply chain risk management (SCRM) and supply chain sustainability (SCS) within the context of small and medium-sized enterprises (SMEs) under the theoretical foundation of dynamic capabilities view.

Design/methodology/approach

A total of 319 valid data sets were gathered from SMEs in China to evaluate the research model. This study uses partial least square structural equation modelling and necessary condition analysis as the two statistical methodologies for the assessment.

Findings

The findings indicate that SCF positively impacts on both SCRM and SCS, whereas SCRM also positively influences SCS. Furthermore, it has been observed that SCRM partially mediates the connection between SCF and SCS.

Research limitations/implications

The findings contribute to the literature of SCS by empirically validating the direct and mediating impacts of SCRM on SCS.

Practical implications

The results provide valuable insights that can assist SME stakeholders, owners and managers in developing strategies to effectively incorporate SCF and SCRM practices, thereby enhancing SCS performance.

Originality/value

This study expands the existing research on SCF and SCRM in the context of promoting SCS, specifically from the viewpoint of an Asian developing country.

Citation

Sun, K., Ooi, K.-B., Wei-Han Tan, G. and Lee, V.-H. (2025), "Small and medium-sized enterprises’ path to sustainable supply chains: exploring the role of supply chain finance and risk management", Supply Chain Management, Vol. 30 No. 1, pp. 1-18. https://doi.org/10.1108/SCM-08-2023-0437