Empirical Research on Supply Chain Finance Innovation Promoting Environmental Governance and Ecological Protection of SMEs

This research examines the relationship between supply chain finance innovation and environmental governance effectiveness among SMEs, with technological capability as mediator and institutional support as moderator. Unlike previous isolated analyses, this study develops an integrated framework capturing the interplay between financial mechanisms and environmental outcomes. The innovative analytical approach incorporates "hard" and "soft" indicators, blockchain-based environmental performance management, and regulatory-financial integration. Hierarchical regression analysis of data from 1,682 manufacturing SMEs (2019-2023) reveals that supply chain finance innovation significantly improves environmental governance effectiveness (β = 0.412, p < 0.01), with 32.9% mediated through technological capability. Institutional support demonstrates substantial moderating effects (β = 0.228, p < 0.01), emphasizing the combined influence of finance innovation and technological capability on environmental outcomes. Cross-sectional analysis shows these effects are stronger among larger firms, private enterprises, and in developed regions. The findings enhance understanding of how financial innovation interacts with environmental sustainability through technological capability while highlighting institutional support's importance. This research contributes to policy formulation and practice by demonstrating how innovative financial mechanisms can encourage improved environmental governance among SMEs.