Does supply chain digitalisation reduce supply chain financing risks? Dual mechanisms by integrating logistics, information flow and capital flow

This study aims to identify the effect of supply chain digitalisation (SCD) on supply chain financing risks (SCFR) grounded on the dynamic capabilities view, and to reveal the mechanisms of information sharing and reducing supply chain risks by establishing risk relationships according to the concept of integrating the ‘three flows’. We use structural equation modelling to validate the proposed model by collecting questionnaire data from 310 Chinese enterprises. Results confirm that SCD significantly reduces SCFR. Also, enhancing information sharing and controlling supply chain risks act as mediating mechanisms. This study clarifies the impact of SCD and provides feasible measures to reduce SCFR, which connects and contributes to the literature of SCD and SCF. Meanwhile, this study establishes risk relationships among the ‘three flows’ to reveal the mechanisms of how SCD reduces SCFR from the insight of the supply chain process, which unlocks the black-box and highlights the importance of coordinating supply chain management.