A study on the impact of supply chain finance on the innovation of small and medium-sized enterprises - mediated by the intermediary effect of financing constraints

Based on a detailed analysis of viewpoints proposed in relevant literature both domestically and internationally, this paper empirically investigates the impact of supply chain finance on the innovation of small and medium-sized enterprises (SMEs), utilizing financial data from listed companies on China's SME board from 2012 to 2022. Additionally, it explores whether the alleviation of financing constraints plays an intermediary effect in this pathway. The findings reveal that: (1) The development of supply chain finance can enhance the innovation capability of SMEs, and its significance level is correlated with the nature of the enterprise's equity; (2) Most SMEs face financing difficulties, and implementing supply chain finance can effectively alleviate these financing constraints. Furthermore, compared to state-owned enterprises, this alleviation effect is more pronounced for non-state-owned enterprises; (3) There exists a significant intermediary effect of financing constraints, indicating that supply chain finance can ease financing constraints, thereby facilitating the improvement of enterprise innovation capabilities. Finally, based on the research findings, this paper presents relevant recommendations from the perspectives of the government, financial institutions, and SMEs.