Supply Chain Finance: Exploring the State of Adoption with Small Business Suppliers in U.S. Defense Procurement Contracts

<p>Innovative supply chain finance (SCF) practices offer alternative approaches to relief of cash flow distress for suppliers in an extended enterprise by enhancing access to and affordability of working capital. Adopting optional SCF instruments can be especially beneficial for small–medium-sized enterprises (SMEs), which are more acutely affected when credit conditions tighten. This explorative research described the state of buyer-led SCF adoption in defense procurement contracts used to produce highly technical weapons systems. A case study research design with embedded units across four groups of intermediaries was employed to compare the state of SCF adoption between a defense and a commercial business environment in the context of alternative working capital finance instruments. The study identified boundary conditions limiting the awareness and use of the buyer-led reverse factoring instrument for SME suppliers performing as subcontractors in the defense business environment. The study found that enterprise orchestration should be considered as a critical mediator for successful SCF adoption in the defense business environment. Contributions include descriptions of evolving motives, key enablers, and challenges of SCF adoption, emphasizing implications for SME manufacturers and suppliers producing vital components for the U.S. Department of Defense and the military services.</p>

Name thesis:degree_name

Ph.D.

Level thesis:degree_level

Dissertation

Year

2023

Author dc:creator

• Phelps, James C., III

Contributors dc:contributor

• Jack Buffington
• Conrad Ciccotello
• George Zsidisin

• Defense procurement
• Small-medium sized enterprises
• Supply chain finance
• Business
• Business Administration, Management, and Operations
• Finance and Financial Management

Statement dc:rights

• <p>Copyright is held by the author. User is responsible for all copyright compliance.</p>

Language dc:language

English (eng)

Repository record dc:identifier

https://digitalcommons.du.edu/etd/2311

OAI identifier oai:identifier

oai:digitalcommons.du.edu:etd-3299