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Digital Platform Driven Green Supply Chain Finance: Navigating Entrepreneurial Sustainability

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Greening Supply Chn Finance via Digital Platforms: A Pathway to Entrepreneurial Sustnability

Abstract:

This study investigates the green new product development problem faced by a capital-constrned Small and Medium Enterprise SME entrepreneur operating under risk aversion within a supply chn managed through digital platforms. The entrepreneur seeks financial support from a multi-sided FinTech platform MSP, which offers combinations of equity financing EF and debt financing DF. The MSP must decide on the interest rate for its DF service while considering environmental policies that promote green entrepreneurship.

We begin by establishing an analytical framework to characterize the production decisions made by both the supply chn and the MSP under a deregulated scenario. This lays the groundwork for understanding the dynamics in an unregulated market environment.

Subsequently, we develop a three-level game-theoretical model focusing on alternative scenarios incorporating government intervention as part of hybrid environmental-green entrepreneurship policies. The model sequentially examines the decision-making process involving the government, the MSP, and the SME entrepreneur. We analyze the outcomes based on various policy approaches economic influence vs. social welfare maximization and the risk attitude of the FinTech platform.

The findings demonstrate that a regulated scenario yields superior outcomes when coupled with an appropriate governmental intervention strategy. This is particularly true in cases where the FinTech platform exhibits a neutral risk profile, striking a balance between EF and DF services. However, for platforms characterized by risk aversion and governments solely focused on economic gns over social welfare considerations, a win-win situation may not be achievable.

To effectively promote sustnable supply chn finance SSCF via digital platforms, policymakers are encouraged to leverage their legislative powers and prioritize green entrepreneurship alongside broader societal benefits over narrow financial objectives.

Funding:

This research was supported by Open Access funding facilitated through CAUL Council of Australian University Libraries, a network providing institutional support for researchers in achieving open access publishing.

History:

Date Published: April 8, 2022

Journal Reference:

Raziyeh Reza-Gharehbagh, Sobhan Asian, Ashkan Hafezalkotob, and Ahmad Makui. Sustnable Supply Chn Finance through Digital Platforms: A Pathway to Green Entrepreneurship. Annals of Operations Research, Vol. 35 2022: 1-35.

Publisher DOI:

https:doi.org10.1007s10479-022-04623-5https:doi.org10.1007s10479-022-04623-5

Accessibility:

This work is licensed under a Creative Commons Attribution 4.0 International License CC BY 4.0. This means that you can use, distribute, adapt, and share the material as long as appropriate credit to the original authors and source are given. For detls on CC BY 4.0 licensing terms, refer to: http:creativecommons.orglicensesby4.0http:creativecommons.orglicensesby4.0

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Categories:

Keywords:

Green Entrepreneurship, Sustnable Supply Chn Finance SSCF, Multi-sided Fintech Platform MSP, Government Intervention, Green New Product Development GNPD, Equity Financing EF

LICENCE:

Creative Commons Attribution 4.0 International License
This article is reproduced from: https://opal.latrobe.edu.au/articles/journal_contribution/Sustainable_supply_chain_finance_through_digital_platforms_a_pathway_to_green_entrepreneurship/19561606

Please indicate when reprinting from: https://www.i466.com/Financial_Corporation/Green_Supply_Chn_Finance_Digital_Plat_40_License.html

Sustainable Supply Chain Finance Platforms Green Entrepreneurship through Digital Financing Multi sided FinTech Platform Strategies Government Role in SSCF Promotion Risk Profile of Fintech Investors Impact GNPD for Small and Medium Enterprises