Impact of Digital Supply Chain Finance to alleviate SMEs financing constraints: Evidence from SRDI enterprises in China.

To explore the alleviating effect of digital supply chain finance (DSCF) on financing constraints experienced by small- and medium-sized enterprises (SMEs), with a view to promoting the digital transformation of enterprises. This observational study utilizes data from Chinese listed enterprises. The study's primary focus is on a selection of SRDI (abbreviation for "specialized, refined, distinctive, and innovative") enterprises in the electronics and machinery industries from 2013 to 2020. The study measures the level of DSCF in the regions where they are located, aims to empirically examine the role of DSCF in alleviating financing constraints for enterprises. (1) SRDI enterprises in China continue to face persistent financing constraints, characterized by limited access to working capital and restricted credit availability. (2) Empirical analysis demonstrates that DSCF can alleviate these financing constraints. (3) Notably, the mitigation effect exhibits industry-specific heterogeneity between the electronics and manufacturing industries, likely attributable to differences in supply chain complexity and asset tangibility between these sectors. Findings underscore DSCF's critical role in alleviating the financing constraints of SMEs while informing targeted financial ecosystem reforms. We propose enhanced policy interventions: (1) tax incentives and blockchain-enabled data-sharing mechanisms to dismantle information asymmetries and boost DSCF efficiency; and (2) sector-specific solutions addressing electronics' R&D liquidity challenges and machinery's capital-intensive production cycles through optimized DSCF frameworks.