ItemArticle

Bridging Financial and Operational Gaps in Supply Chain Finance: An Information Processing Theory Perspective

Title
Bridging Financial and Operational Gaps in Supply Chain Finance: An Information Processing Theory Perspective
Creator
Divya, D.; Abraham, Rebecca; Bhimavarapu, Venkata Mrudula; Arunkumar, O.N.
Description
This paper explores the integration of financial and operational flows in Supply Chain Finance (SCF) through the lens of Information Processing Theory (IPT). Despite increasing adoption of SCF solutions like reverse factoring and trade credit, existing literature lacks a unified theoretical framework that captures both financial and organizational complexities. Drawing from 47 peer-reviewed articles in leading supply chain journals, this study identifies key SCF dimensionstask characteristics, environment, and interdependenceas primary sources of uncertainty and information processing needs. It then examines how IT systems, coordination mechanisms, and organizational design enhance processing capacity, enabling firms to build SCF capabilities such as risk assessment, supplier onboarding, and financial process standardization. These capabilities facilitate financial supply chain integration through data connectivity, embedded flows, and collaborative planning. The study contributes a comprehensive conceptual model that connects SCF uncertainties, processing strategies, and performance outcomes, addressing theoretical and managerial gaps. It further provides a foundation for future empirical research and strategic design of SCF systems to enhance supply chain resilience and financial efficiency. 2025 by the authors.
Source
Journal of Risk and Financial Management;Volume;18;Issue;9;Article No.;479;
Date
01-01-2025
Publisher
Multidisciplinary Digital Publishing Institute (MDPI)
Subject
financial supply chain integration; Information Processing Theory (IPT); SCF capabilities; SCF uncertainty; Supply Chain Finance (SCF)
Coverage
Divya D., School of Business and Management, Christ University, Karnataka, Bengaluru, 560029, India; Abraham R., Huizenga College of Business, Nova Southeastern University, 3301 College Ave, Fort Lauderdale, 33314, FL, United States; Bhimavarapu V.M., Symbiosis Institute of Business Management, Symbiosis International (Deemed University), Karnataka, Bengaluru, 560100, India; Arunkumar O.N., Symbiosis Institute of Business Management, Symbiosis International (Deemed University), Karnataka, Bengaluru, 560100, India
Rights
All Open Access; Hybrid Gold Open Access
Relation
ISSN: 19118074;
Format
online
Language
English
Type
Article

Citation

Divya, D.; Abraham, Rebecca; Bhimavarapu, Venkata Mrudula; Arunkumar, O.N., “Bridging Financial and Operational Gaps in Supply Chain Finance: An Information Processing Theory Perspective,” CHRIST (Deemed To Be University) Institutional Repository, accessed June 18, 2026, https://archives.christuniversity.in/items/show/23533.

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