[go: up one dir, main page]
More Web Proxy on the site http://driver.im/
  EconPapers    
Economics at your fingertips  
 

Focusing the financial flow of supply chains: An empirical investigation of financial supply chain management

David A. Wuttke, Constantin Blome and Michael Henke

International Journal of Production Economics, 2013, vol. 145, issue 2, 773-789

Abstract: The objective of this paper is to establish a theoretical foundation for financial supply chain management (FSCM) in order to strengthen managerial decisions concerning financial flows in supply chains. Although such decisions are made frequently and partial aspects of FSCM are already understood in business practice, empirical knowledge about FSCM is in its early stages. The study provides fundamental information derived from eight case studies based on 40 interviews. The analysis extends previous studies of the interface between operations management and finance by (i) contributing to a mid-range theory of FSCM by exploring two distinct but not exclusive FSCM categories, their antecedents, and performance effects, (ii) empirically deriving a testable framework for FSCM, (iii) relating FSCM to established theories in the field of SCM, and (iv) basing the analysis on transaction cost economics. Managerial insights reveal that weak working capital causes firms to focus on FSCM. More specifically, the study identifies two FSCM categories: pre-shipment FSCM (before invoice release) and post-shipment FSCM (after invoice release). Managers can improve upstream supply chain working capital with pre-shipment FSCM, whereas post-shipment FSCM strengthens the buying firm’s working capital position. Based on transaction cost economics, we analyze how these improvements stem from risk reductions, which are more effective if firms are integrated internally and externally.

Keywords: Financial supply chain management; Financial flow; Case study (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (49)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0925527313002740
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:145:y:2013:i:2:p:773-789

DOI: 10.1016/j.ijpe.2013.05.031

Access Statistics for this article

International Journal of Production Economics is currently edited by Stefan Minner

More articles in International Journal of Production Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2025-01-08
Handle: RePEc:eee:proeco:v:145:y:2013:i:2:p:773-789