Supply Chain Finance, Digital Transformation and Manufacturing Firm Performance: Evidence from China

To discover the relationship between digital transformation, supply chain finance, and firm performance, this study selects the financial data of Chinese-listed manufacturing enterprises from 2009 to 2022. It excludes the companies that will be delisted or listed for less than one year. Using Python to search for digital transformation frequency and other variables in annual reports and by building a structural equation model for digital transformation, supply chain finance, and firm performance with the help of SPSS and AMOS, this article shows ample results. Those results show that supply chain finance can alleviate the pressure of the cash chain to a great extent and then improve various performance indicators. To sum up, for listed manufacturing companies, the degree of supply chain finance, the financial performance of enterprises, and environmental, social, and governance indicators are positively correlated, and the degree of digital transformation has a mediating effect in this model, which means supply chain finance can influence firm performance by improving the digital transformation degree in a manufacturing firm.