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Improving the benefits and costs on sustainable supply chain finance under uncertainty

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  • Tseng, Ming-Lang
  • Lim, Ming K.
  • Wu, Kuo-Jui

Abstract

Prior studies in sustainable development have been conducted since its introduction, however, there is evidence in the literature that sustainable supply chain finance is still lacking, in particular, in relation to developing measurements to analyze the benefit and cost attributes. Furthermore, these studies did not also identify an ideal hierarchical structure, which is key for accuracy of decisions making. Hence, this paper contributes to the literature by constructing a set of measurements and analyzing the benefits and costs in the textile industry. In this paper, a fuzzy interpretive structural model was developed to build a hierarchical model, and a fuzzy TODIM was applied to determine the linguistic preferences and identify the benefits and costs. The results obtained show that sustainable supply chain finance improves firms' competitive advantages through multiple attributes, which imply that collaboration value innovation, strategic competitive advantage and financial attributes are the most important aspects for improving firm's performance. The results also indicate that to build a successful sustainable supply chain finance, firms should upgrade the synchronization of financial-related decisions, obtain price and cost information, focus on product and service quality, and ensure the dispersion of dependent and interdepartmental interactions.

Suggested Citation

  • Tseng, Ming-Lang & Lim, Ming K. & Wu, Kuo-Jui, 2019. "Improving the benefits and costs on sustainable supply chain finance under uncertainty," International Journal of Production Economics, Elsevier, vol. 218(C), pages 308-321.
    • Handle: RePEc:eee:proeco:v:218:y:2019:i:c:p:308-321
    DOI: 10.1016/j.ijpe.2019.06.017
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    7. Tseng, Ming-Lang & Bui, Tat-Dat & Lim, Ming K. & Fujii, Minoru & Mishra, Umakanta, 2022. "Assessing data-driven sustainable supply chain management indicators for the textile industry under industrial disruption and ambidexterity," International Journal of Production Economics, Elsevier, vol. 245(C).
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    11. Mohammed A. Hajar & Ammar Ahmed Alkahtani & Daing Nasir Ibrahim & Mohd Ridzuan Darun & Mohammed A. Al-Sharafi & Sieh Kiong Tiong, 2021. "The Approach of Value Innovation towards Superior Performance, Competitive Advantage, and Sustainable Growth: A Systematic Literature Review," Sustainability, MDPI, vol. 13(18), pages 1-33, September.
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    15. Yubin Yang & Xuejian Chu & Ruiqi Pang & Feng Liu & Peifang Yang, 2021. "Identifying and Predicting the Credit Risk of Small and Medium-Sized Enterprises in Sustainable Supply Chain Finance: Evidence from China," Sustainability, MDPI, vol. 13(10), pages 1-19, May.
    16. Faranak Emtehani & Nasim Nahavandi & Farimah Mokhatab Rafiei, 2023. "Trade credit financing for supply chain coordination under financial challenges: a multi-leader–follower game approach," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-39, December.
    17. Chen, Sihua & Du, Jiangze & He, Wei & Siponen, Mikko, 2022. "Supply chain finance platform evaluation based on acceptability analysis," International Journal of Production Economics, Elsevier, vol. 243(C).

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