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Supply chain finance risk management

Author

Listed:
  • Yenming J Chen

    (National Kaohsiung First University of Science and Technology, Taiwan)

  • Henry Tsai

    (The Hong Kong Polytechnic University, Hong Kong)

  • Yi-Fen Liu

    (National Kaohsiung First University of Science and Technology, Taiwan)

Abstract

Based on mechanism design theory on asymmetric information, this study devises a selectable menu of contracts with price discounts and trade credit rates and proposes strategies for mitigating the risk of payment default when a tourism service provider trades with unfamiliar tour operators. Tourism service providers are suggested to remain conservative under a positive economic condition and progressive under a moderate economic condition when engaging in a new business opportunity. However, a fringe level of progressivism may be maintained under a moderate economy and a low-risk environment. The net benefit of tourism service providers increases when the bank rate is high, and the profit of the entire tourism channel increases when the percentage or ability to pay reliable agents is high.

Suggested Citation

  • Yenming J Chen & Henry Tsai & Yi-Fen Liu, 2018. "Supply chain finance risk management," Tourism Economics, , vol. 24(5), pages 593-614, August.
    • Handle: RePEc:sae:toueco:v:24:y:2018:i:5:p:593-614
    DOI: 10.1177/1354816618762187
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    References listed on IDEAS

    as
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