Universität zu Köln

Wuttke, David A., Blome, Constantin ORCID: 0000-0001-5927-7205, Heese, H. Sebastian and Protopappa-Sieke, Margarita (2016). Supply chain finance: Optimal introduction and adoption decisions. Int. J. Prod. Econ., 178. S. 72 - 82. AMSTERDAM: ELSEVIER SCIENCE BV. ISSN 1873-7579

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Abstract

Supply chain finance (SCF) can improve supply chain performance by facilitating longer payment terms for buyers and better access to financing for suppliers. In spite of these clear benefits, there is empirical evidence for some hesitation and resistance to SCF adoption, manifesting in an often substantial time lag between a buyer's introduction of SCF and its adoption by all targeted suppliers. Observed adoption processes often resemble the s-shaped Bass-curve suggesting that successful early adoptions support adoption decisions by other suppliers. Based on these observations, we consider supplier SCF adoption decisions within a diffusion model, to obtain insights regarding a buyer's optimal SCF introduction decisions in terms of timing and payment terms. We find that initial payment terms and procurement volume strongly affect the optimal timing of SCF introduction and optimal payment term extensions. The degree to which the buyer can influence suppliers in their adoption decisions affects the optimal introduction timing, but not optimal payment terms. Interestingly, our results suggest that, in spite of the clear benefits, many buyers might be well-advised to postpone their SCF implementations. (C) 2016 Elsevier B.V. All rights reserved.

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Wuttke, David A. UNSPECIFIED UNSPECIFIED UNSPECIFIED Blome, Constantin UNSPECIFIED orcid.org/0000-0001-5927-7205 UNSPECIFIED Heese, H. Sebastian UNSPECIFIED UNSPECIFIED UNSPECIFIED Protopappa-Sieke, Margarita UNSPECIFIED UNSPECIFIED UNSPECIFIED
URN:	urn:nbn:de:hbz:38-268852
DOI:	10.1016/j.ijpe.2016.05.003
Journal or Publication Title:	Int. J. Prod. Econ.
Volume:	178
Page Range:	S. 72 - 82
Date:	2016
Publisher:	ELSEVIER SCIENCE BV
Place of Publication:	AMSTERDAM
ISSN:	1873-7579
Language:	English
Faculty:	Unspecified
Divisions:	Unspecified
Subjects:	no entry
Uncontrolled Keywords:	Keywords Language MODEL Multiple languages Engineering, Industrial; Engineering, Manufacturing; Operations Research & Management Science Multiple languages
Refereed:	Yes
URI:	http://kups.ub.uni-koeln.de/id/eprint/26885