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Financing Strategy on Accounts Receivable Supply Chain via Blockchain Technology

Author

Listed:
  • Jizhou Zhan

    (School of Engineering Audit, Nanjing Audit University, Nanjing 211815, China)

  • Jiazhou Huang

    (School of Finance, Nanjing Audit University, Nanjing 211815, China)

  • Han Yan

    (Nanjing Jianye Sub-branch, Agricultural Bank of China, Nanjing 210004, China)

  • Heap-Yih Chong

    (School of Engineering Audit, Nanjing Audit University, Nanjing 211815, China)

Abstract

Supply chains frequently encounter complexities and inefficiencies in accounts receivable financing, a critical issue this study tackles by exploring blockchain’s potential to enhance the process. The research develops a hybrid coordination mechanism for a three-tier accounts receivable supply chain (ARSC) involving a raw material supplier, manufacturer, and retailer, integrating blockchain features. It compares optimal financing decisions and outcomes between a traditional ARSC and one enhanced with blockchain. The study introduces two financing modes within the ARSC to evaluate blockchain’s impact, analyzing how key parameters influence stakeholders’ decisions, strategies, and profits. Results show blockchain integration can—under specific parameter constellations—lead to higher retailer orders, contingent on elevated information elasticity and low information-sharing costs, thereby potentially benefiting upstream suppliers. A contract that includes wholesale price discounts and streamlined payment transfers between members can effectively coordinate the blockchain-integrated ARSC. This research offers novel theoretical insights and strategic direction for financing ARSC with blockchain, advancing the field by juxtaposing conventional financing with blockchain-enhanced models, highlighting blockchain’s role in optimizing supply chain financing and coordination.

Suggested Citation

  • Jizhou Zhan & Jiazhou Huang & Han Yan & Heap-Yih Chong, 2026. "Financing Strategy on Accounts Receivable Supply Chain via Blockchain Technology," Interfaces, INFORMS, vol. 56(3), pages 257-273, May.
    • Handle: RePEc:inm:orinte:v:56:y:2026:i:3:p:257-273
    DOI: 10.1287/inte.2024.0153
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    References listed on IDEAS

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