Impact of Supply Chain Finance and Firm Performance

Abstract : This systematic review examines the relationship between SCF and firm performance by synthesizing evidence from Scopus indexed research published between 2020 to 2025. An initial search using keywords “Supply Chain Finance” and “Firm performance” yielded 300 records, after applying PRISM guidelines including identification, screening, eligibility, and reviewed articles within the business management and accounting subject areas and finally found 55 papers.  The selected studies provide comprehensive insights into how SCF mechanisms such as reverse factoring, inventory financing, dynamic discounting, fintech enabled financing and blockchain driven platforms influence financial and operational outcomes. These findings consistently indicate that SCF enhance firm performance by improving liquidity, reducing working capital constraints, strengthening supply chain collaboration, and mitigating risk, particularly in environments marked by uncertainty and financial instability. The review also highlights the growing strategic role of digitalization, where technologies such as industry 4.0 tools, data analytics, and blockchain significantly accelerating information sharing. Several studies reveal the ESG practices, dynamic capabilities, and SCF integration mediate or moderate the SCF performance relationship, suggesting that organizational capabilities stringly shape SCF outcomes. Despite widespread evidence of positive effects, variations across industries and contexts point to the need for standardized measurement and deeper cross-sectional analysis. Overall, the review concludes that SCF serves as a critical driver of firm performance in modern supply chains and underscores the importance of technology enabled collaborative financing models for long-term competitiveness and resilience.