An integrated approach for modeling critical success factors for supply chain finance ecosystem

Purpose Supply chain finance (SCF) has become a vital ingredient that fosters growth and provides flexibility to the global supply chain. Thus, it becomes essential to understand the factors that contribute to the success of the supply chain finance ecosystem (SCFE). This study aims to identify the critical success factors (CSFs) for the development of an efficient and effective SCFE. Based on their characteristics, the study intends to classify the factors into constructs and further establish a hierarchical relationship among the CSFs. Design/methodology/approach The study is based on empirical data collected from 221 respondents based on administered questionnaires. Exploratory factor analysis (EFA) is carried out on 16 selected factors (out of 21 proposed factors) based on the feedback of the experts and the factors were classified into four constructs. The total interpretive structural modeling (TISM) model was developed by identifying and finalizing CSFs of the SCFE. The model developed a hierarchical relationship between the various factors. Findings The study identified significant CSFs for the efficient and effective SCF ecosystem. Four constructs were developed by analyzing CSFs using the EFA. The finalized 16 CSFs modeled through the TISM and further hierarchical relationship established between the CSFs concludes that governmental policies and sectoral growth are the strongest driving forces and financial attractiveness is the weakest driving force. Based on the CSFs and the constructs identified, it was found that for the success of the SCF ecosystem, the existence of an economic ecosystem provides a facilitating framework for the overall development of the SCFE. Also, the trustworthiness among the partners fosters better relationships and results in financial feasibility and offers business opportunities for all the stakeholders. Practical implications This study will help the SCF partners across the globe understand the CSFs that ensure development of mutually beneficial SCF ecosystems and provide flexibility to the supply chain partners. The CSFs would provide insights to the policymakers and the financial intermediaries for providing a conducive environment for the development of a better SCF ecosystem. Also, the buyers and sellers would understand the CSFs that would develop better relationships among them and ultimately help in development of business across the globe. Originality/value The study identifies the CSFs for the SCF ecosystem. The study ascertains the significant factors and classifies them into clusters using EFA. Unlike the literature available, the paper develops the hierarchical relationship between the CSFs and develops a model for an efficient and effective SCF ecosystem.