The supply chain financing ecosystem: Early responses during the COVID-19 crisis

Abstract

This study illustrates how the supply chain financing (SCF) ecosystem has responded to the COVID-19 crisis during the first year of its onset. The economic effects have manifested in disrupted supply chains, increased financial stress, and an overall negative impact on global trade. A multitude of organizations have struggled to manage their cash flow and working capital to survive the crisis. Overall, we explore how the SCF community as a business service ecosystem has intervened to provide organizations with opportunities to improve their liquidity. We use data obtained from a systematic, in-depth analysis of the practice-driven literature reporting on SCF activities as they unfolded in the early stages of the crisis. An inductive qualitative case study approach is applied to develop the grounded theoretical model that illustrates the SCF ecosystem's behaviors as it responded to the crisis. Furthermore, a post-hoc investigation, consisting of semi-structured interviews with 28 SCF experts, has been conducted to validate the theoretical model and to capture future developments. As we anticipate continuing global supply chain disruptions given the virus and its mutations, global warming, and trade wars among superpowers, our study provides insights for the behaviors of and relationships between the actors that comprise the SCF ecosystem in turbulent times.