IDEAS home Printed from https://ideas.repec.org/a/gam/jagris/v15y2025i12p1325-d1683175.html
   My bibliography  Save this article

The Impact of Supply Chain Finance on the Total Factor Productivity of Agricultural Enterprises: Evidence from China

Author

Listed:
  • Haoyang Luo

    (College of Economics, Sichuan Agricultural University, Chengdu 611130, China)

  • Yue Yu

    (College of Economics, Sichuan Agricultural University, Chengdu 611130, China)

  • Lan Wang

    (College of Economics, Sichuan Agricultural University, Chengdu 611130, China)

  • Yanru Wu

    (College of Economics, Sichuan Agricultural University, Chengdu 611130, China)

  • Yan Liu

    (College of Economics, Sichuan Agricultural University, Chengdu 611130, China)

Abstract

As the primary force driving the sustainable development of the rural economy, the improvement of the total factor productivity (TFP) of agricultural enterprises (AEs) is of great strategic significance. This study innovatively zeroes in on AEs, leveraging micro-level data from agricultural listed companies in China’s A-share market spanning from 2007 to 2023. It aims to investigate the impact of supply chain finance (SCF) on the TFP of these enterprises and elucidate the underlying mechanisms. Uniquely, this study incorporates enterprise digital transformation and innovation capability as moderating variables into the mechanism analysis framework. Furthermore, it examines the heterogeneous effects across different characteristics of AEs. The findings reveal that SCF significantly boosts the TFP of AEs. Specifically, a one-standard-deviation increase in the level of SCF is associated with a 0.2658% increase in TFP relative to the mean. This conclusion holds robustly across various tests. Moreover, the interaction terms of SCF with both enterprise digital transformation and innovation capability are significantly positive. This indicates that greater digital transformation and stronger innovation capability amplify the positive effect of SCF on TFP. The heterogeneous analysis further indicates that for AEs with highly optimized human capital, higher financing constraints, and more efficient credit resource allocation, the positive impact of SCF on TFP is particularly pronounced.

Suggested Citation

  • Haoyang Luo & Yue Yu & Lan Wang & Yanru Wu & Yan Liu, 2025. "The Impact of Supply Chain Finance on the Total Factor Productivity of Agricultural Enterprises: Evidence from China," Agriculture, MDPI, vol. 15(12), pages 1-25, June.
    • Handle: RePEc:gam:jagris:v:15:y:2025:i:12:p:1325-:d:1683175
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2077-0472/15/12/1325/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2077-0472/15/12/1325/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Liu, Lu & Zhao, Shumeng, 2025. "Local government debt, financing constraints and firms' green total factor productivity," International Review of Financial Analysis, Elsevier, vol. 97(C).
    2. Schipmann, Christin & Qaim, Matin, 2011. "Supply chain differentiation, contract agriculture, and farmers’ marketing preferences: The case of sweet pepper in Thailand," Food Policy, Elsevier, vol. 36(5), pages 667-677.
    3. Li Lin & Tianyu Gu & Yi Shi, 2024. "The Influence of New Quality Productive Forces on High-Quality Agricultural Development in China: Mechanisms and Empirical Testing," Agriculture, MDPI, vol. 14(7), pages 1-19, June.
    4. Daniel A. Ackerberg & Kevin Caves & Garth Frazer, 2015. "Identification Properties of Recent Production Function Estimators," Econometrica, Econometric Society, vol. 83, pages 2411-2451, November.
    5. Lam, Hugo K.S. & Zhan, Yuanzhu & Zhang, Minhao & Wang, Yichuan & Lyons, Andrew, 2019. "The effect of supply chain finance initiatives on the market value of service providers," International Journal of Production Economics, Elsevier, vol. 216(C), pages 227-238.
    6. Yao, Dingjun & Yan, Kai, 2025. "Can factoring business alleviate the seasonal impact on agricultural supply chain enterprises?," International Review of Financial Analysis, Elsevier, vol. 98(C).
    7. Trang Doan Do & Ha An Thi Pham & Eleftherios I. Thalassinos & Hoang Anh Le, 2022. "The Impact of Digital Transformation on Performance: Evidence from Vietnamese Commercial Banks," JRFM, MDPI, vol. 15(1), pages 1-15, January.
    8. Yamei Guan & Na Sun & Sarah Jinhui Wu & Yuxi Sun, 2025. "Supply Chain Finance, Fintech Development, and Financing Efficiency of SMEs in China," Administrative Sciences, MDPI, vol. 15(3), pages 1-16, March.
    9. Wang, Zhiqiang & Wang, Qiang & Lai, Yin & Liang, Chaojie, 2020. "Drivers and outcomes of supply chain finance adoption: An empirical investigation in China," International Journal of Production Economics, Elsevier, vol. 220(C).
    10. Kadri Männasoo & Heili Hein & Raul Ruubel, 2018. "The contributions of human capital, R&D spending and convergence to total factor productivity growth," Regional Studies, Taylor & Francis Journals, vol. 52(12), pages 1598-1611, December.
    11. Chakuu, Sumeer & Masi, Donato & Godsell, Janet, 2019. "Exploring the relationship between mechanisms, actors and instruments in supply chain finance: A systematic literature review," International Journal of Production Economics, Elsevier, vol. 216(C), pages 35-53.
    12. ., 2021. "Corporations and finance," Chapters, in: Evolution of the Corporation in the United States, chapter 6, pages 102-113, Edward Elgar Publishing.
    13. Linjing Yang & Hao Yuan, 2025. "Supply Chain Financing and Total Factor Productivity: Evidence From Listed Manufacturing Companies in China," Journal of International Development, John Wiley & Sons, Ltd., vol. 37(1), pages 334-349, January.
    14. Gu, Haoran & Yang, Shenggang & Xu, Zhaoyi & Cheng, Cheng, 2023. "Supply chain finance, green innovation, and productivity: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 78(C).
    15. Manolis Manioudis & Giorgos Meramveliotakis, 2022. "Broad strokes towards a grand theory in the analysis of sustainable development: a return to the classical political economy," New Political Economy, Taylor & Francis Journals, vol. 27(5), pages 866-878, September.
    16. Ning Yin & Yapeng Wang, 2017. "Impacts of Rural Labor Resource Change on the Technical Efficiency of Crop Production in China," Agriculture, MDPI, vol. 7(3), pages 1-12, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Kai & Ding, Ning & Wang, Chenbo, 2025. "Supply chain finance and outward foreign direct investment," Research in International Business and Finance, Elsevier, vol. 73(PA).
    2. Yu Gong & Yun Zhang & Mohammed Alharithi, 2022. "Supply Chain Finance and Blockchain in Operations Management: A Literature Review," Sustainability, MDPI, vol. 14(20), pages 1-21, October.
    3. 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).
    4. Zhang, Wen & Yan, Shaoshan & Li, Jian & Tian, Xin & Yoshida, Taketoshi, 2022. "Credit risk prediction of SMEs in supply chain finance by fusing demographic and behavioral data," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 158(C).
    5. Qiang Wang & Shichao Yuan & Dragana Ostic & Liujun Pan, 2023. "Supply chain finance and innovation efficiency: An empirical analysis based on manufacturing SMEs," PLOS ONE, Public Library of Science, vol. 18(7), pages 1-26, July.
    6. Jiasen Sun & Pengpeng Yuan & Lianlian Hua, 2023. "Pricing and financing strategies of a dual-channel supply chain with a capital-constrained manufacturer," Annals of Operations Research, Springer, vol. 329(1), pages 1241-1261, October.
    7. Wang, Zhiqiang & Wang, Qiang & Lai, Yin & Liang, Chaojie, 2020. "Drivers and outcomes of supply chain finance adoption: An empirical investigation in China," International Journal of Production Economics, Elsevier, vol. 220(C).
    8. Ying Lu & Sha Sun & Mingming Zhang & Zikun Yang, 2024. "Moving Towards Sustainable Development: Can Supply Chain Finance Promote Corporate Green Innovation?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 13001-13026, September.
    9. Roberta Pellegrino & Nicola Costantino & Danilo Tauro, 2020. "Advance Purchase Discounts for Supply Chain Finance System Coordination," Sustainability, MDPI, vol. 12(23), pages 1-20, December.
    10. Meng, Shunjie & Xu, Xiaoxin, 2025. "Can digital infrastructure improve corporate productivity? Evidence from a quasi-natural experiment in China✰," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 1867-1884.
    11. Rahman, Molla Ramizur & Misra, Arun Kumar & Kumar, Satish, 2024. "A financial supply chain on corporate working capital and interbank lines of credit," International Review of Financial Analysis, Elsevier, vol. 91(C).
    12. Guerini, Mattia & Nesta, Lionel & Ragot, Xavier & Schiavo, Stefano, 2024. "Zombification of the economy? Assessing the effectiveness of French government support during COVID-19 lockdown," Journal of Economic Behavior & Organization, Elsevier, vol. 218(C), pages 263-280.
    13. Ensar Yılmaz & Zeynep Kaplan, 2022. "Heterogeneity of market power: firm-level evidence," Economic Change and Restructuring, Springer, vol. 55(2), pages 1207-1228, May.
    14. Hui Yang & Jingye Li & Stefan Sieber & Kaisheng Long, 2025. "Does Digital Village Construction Affect the Sustainable Intensification of Cultivated Land Use? Evidence from Rural China," Agriculture, MDPI, vol. 15(9), pages 1-24, April.
    15. Geoffrey Barrows & Hélène Ollivier & Ariell Reshef, 2023. "Production Function Estimation with Multi-Destination Firms," CESifo Working Paper Series 10716, CESifo.
    16. Feng, Qu & Wu, Guiying Laura, 2018. "On the reverse causality between output and infrastructure: The case of China," Economic Modelling, Elsevier, vol. 74(C), pages 97-104.
    17. Andrés César & Guillermo Falcone, 2020. "Heterogeneous Effects of Chinese Import Competition on Chilean Manufacturing Plants," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 1-60.
    18. Kuosmanen, Natalia & Valmari, Nelli, 2023. "Renewal of Companies Through Product Switching," ETLA Working Papers 104, The Research Institute of the Finnish Economy.
    19. Enghin Atalay & Ali Hortacsu & Mustafa Runyun & Chad Syverson & Mehmet Fatih Ulu, 2023. "Micro- and Macroeconomic Impacts of a Place-Based Industrial Policy," Working Papers 23-12, Federal Reserve Bank of Philadelphia.
    20. Yuan, Li & Rao, Siqi & Yang, Shenggang & Dai, Pengyi, 2023. "Does equity market openness increase productivity? the dual effects of Shanghai-Hong Kong stock Connect program in China," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 88(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jagris:v:15:y:2025:i:12:p:1325-:d:1683175. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.