Competitive advantage is not achieved by a single company, but rather by the entire supply chain, with a focus on improving the flow of information, finance and goods. Improving these flows requires strategic investments relevant to the supply chain that are often long-term, capital-intensive, relationship-specific, and therefore risky. The past financial or COVID-19 crisis has made banks more risk averse, making it more expensive for supply chain members to finance risky investments or even more difficult to raise funds from external financial institutions. Supply chain finance is a young discipline that focuses on improving financial flows through a collaborative approach. Since most strategic investments are made by suppliers facing financial constraints, there is a high likelihood that supply chain disruptions will occur because the financing party becomes insolvent, or the investments do not materialize. To encourage strategic investments and avoid supply chain disruptions, a model is developed in which supply chain members leverage their financial and operational capabilities to realize these investments and share costs, risks, and benefits according to their contribution. The proposed model is based on a structured coalition game with transferable utility that determines the supply chain members best able to finance the investments without compromising supply chain stability.
Author(s): Carolyn Somorowsky
Publisher: Springer Gabler
Year: 2022
Language: English
Pages: 238
City: Wiesbaden
Acknowledgements
Contents
Abbreviations
Symbols
Greek symbols
Set symbols
Mathematical symbols
List of Figures
List of Tables
1 Introduction
1.1 Motivation
1.2 Research Questions and Objective of Research
1.3 Course of Argumentation and Structure of the Thesis
2 Embedding the Topic into the Scientific Environment Based on a Comprehensive Literature Review
2.1 Supply Chain
2.1.1 Definition of a Supply Chain
2.1.2 Objective of a Supply Chain
2.2 Supply Chain Management
2.2.1 Concept of Collaboration
2.2.2 Characteristics Supply Chain Management
2.2.3 The Value Chain Approach
2.2.4 Changes in the Business Environment
2.3 Investment and Financing
2.3.1 Types of Investments and Supply Chain Investments
2.3.2 Criteria for Investment Decisions
2.3.3 Financing Investments
2.3.4 Conflict between Organizational and Supply Chain Perspective
2.4 Supply Chain Finance
2.4.1 Financial Risks as Part of Supply Chain Risk Management
2.4.2 Classification and Objectives of Supply Chain Finance
2.5 Chapter Summary
3 Methodical Procedure According to a Problem-Centered Approach
3.1 Design Science Research
3.1.1 Types of Artifacts
3.1.2 Methodical Approach of Design Science Research
3.2 Problem Identification and Motivation
3.2.1 Practical Examples of Financing Investments in Supply Chains
3.2.2 Identified Problems and Opportunities from Practical Examples
3.3 Definition of the Objective of a Solution
3.3.1 Systematic Literature Review on Financing Investments in Supply Chains
3.3.2 Requirement and Objective of the Solution
3.4 Chapter Summary
4 Development of a Supply Chain Finance Model in Consideration of Cooperative Game Theory
4.1 Decision-Making Model for Decision Support
4.2 General Description of Game Theory
4.2.1 Cooperative Game Theory
4.2.2 Characteristic Function
4.2.3 Solution Concepts
4.3 Determination of the Disruption Risk and Financing Costs
4.3.1 The Merton Model
4.3.2 Critical Reflection of the Merton Model and Implication for the use in Supply Chains
4.4 Modeling the Collaborative Financing of a Supply Chain Investment based on a Coalition Game
4.4.1 Problem Description
4.4.2 Supply Chain Structure
4.4.3 Supply Chain Structure with Investment
4.4.4 The Collaborative Supply Chain Finance Model
4.4.5 Conceptual Overview of the Collaborative Supply Chain Finance Model
4.5 Chapter Summary
5 Demonstration and Evaluation of the Model and Considerations for Practical Applicability
5.1 Demonstration of the Collaborative Supply Chain Finance Model
5.1.1 Determination of Parameters and the Status Quo
5.1.2 Investment Opportunity and its Impact on the Supply Chain
5.1.3 Determination of the Coalition Members to Finance the Investment
5.1.4 Contribution-based Profit Allocation
5.2 Evaluation of the the Collaborative Supply Chain Finance Model
5.2.1 Evaluation of the Solution of the Model and Partial Sensitivity Analysis
5.2.2 Utility of the Collaborative Supply Chain Finance Model Depending on Scope and Purpose
5.3 Chapter Summary
6 Summary and Conclusion
A Bibliography
