Nonlinear impact of supply chain finance on the performance of seafood firms: A case study from Vietnam

Doan, T.; Bui, T.

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Uncertain Supply Chain Management

ISSN 2291-6830 (Online) - ISSN 2291-6822 (Print) Quarterly Publication Volume 8 Issue 2 pp. 267-272 , 2020

Nonlinear impact of supply chain finance on the performance of seafood firms: A case study from Vietnam Pages 267-272 Download PDF

Authors: Thu-Trang Thi Doan, Toan Ngoc Bui

DOI: 10.5267/j.uscm.2020.1.001

Keywords: GMM, Nonlinear, Performance, Supply chain finance, Vietnam

Abstract: Supply chain finance has become an interesting research topic which attracts lots of attention from scholars recently, particularly after the global financial crisis. However, only few studies have examined the causal relationship between supply chain finance and firm performance. More specially, there is a big research gap when almost none of existing research has analysed the nonlinear impact of supply chain finance on firm performance. With this aim, this paper succeeds in giving first empirical evidence on the U-shaped nonlinear relationship between supply chain finance and the performance of seafood firms in Vietnam. Specifically, a bad performance of supply chain finance (the increase in cash conversion cycle - CCC) causes a lower firm performance (FP). Nevertheless, if any decrease in firm performance reaches its minimum (CCC*), the restructuring of the firm will gradually improve it. In addition, firm performance is significantly influenced by controlled variables of firm-specific, firm size (SIZE) and capital structure (CAP), and macroeconomic, economic growth (EG), factors. The findings are valuable for the management as well as scholars in bringing a more comprehensive perspective on the causal relationship between supply chain finance and firm performance.

How to cite this paper

 Doan, T & Bui, T. (2020). Nonlinear impact of supply chain finance on the performance of seafood firms: A case study from Vietnam.Uncertain Supply Chain Management, 8(2), 267-272.

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