Blockchain-Enabled Supply Chain Financing, Financial Capital Availability and Firm Performance: A Tri-Variate Interaction Analysis for Small and Medium Family Enterprises

Abstract

This study investigates the influence of blockchain-enabled supply chain financing (BcTSCF) on the performance and financial capital availability of small- and medium-sized family enterprises (SMFEs) in Ghana. Utilizing the purposive sampling method, data were collected from 215 SMFEs across Ghana’s agribusiness, construction, catering and hospitality, fashion and design, and wholesale and retail sectors. Drawing implicitly on resource-based theory and employing a quantitative correlational approach and PLS-SEM, we find that financial capital availability is positively influenced by BcTSCF, enhancing firm performance, especially innovation performance. Specifically, BcTSCF is positively related with availability of financial capital. Furthermore, firm performance was positively influenced by the availability of financial capital for SMFEs (ꞵ= 0.652; t-value = 20.287; CI [0.587, 0.713]; p ˂ 0.001). Between innovation and financial performance, the availability of financial capital has a greater impact on the former than the latter (ꞵ=0.574; t-value = 19.443; CI [0.516, 0.632]; p-value ˂ 0.01). This study contributes significantly to the sparse academic discourse in sub-Saharan Africa by addressing the gap in research on BcTSCF and SMFEs in developing countries. Again, it provides important information for industry practitioners and regulators to encourage blockchain usage and to enhance SMFEs' financial health of SMFEs.