Research On Business Model And Incentive Strategy Of "Blockchain + Supply Chain Finance"

Supply chain finance refers to financing services offered by financial institutions to meet the fund needs of supply chain enterprises in small and medium sizes.For a long time,it is very difficult for financial workers to conduct supply chain financial business,especially the inventory financing,due to the difficulties in confirming rights of credit and in transferring credit.The in-depth integration of blockchain technology and supply chain finance offers a solution to the issues above,which also helps small and medium companies ease their financing difficulties.This has become the consensus of the academia and industrial circles.However,the existing research results lack deep systematic study into supply chain enterprises to join a blockchain,and widely-recognized application cases in this regard,in terms of the "blockchain + supply chain finance" business model or how to establish an incentive mechanism to put such model into effect.In view of this,this paper takes the inventory financing in the supply chain financial business as an example to develop its applicable block chain business model.On this basis,it creates a supply chain enterprise income model to analyze factors influencing each enterprise in joining the block chain,so as to indicate the main object an incentive mechanism targets,.In the following,it presents an incentive model with a commercial bank and a logistics firm respectively as the principal and agent,and analyzes the incentive strategy.Finally,the paper gives a case study of the inventory financing business of D Bank to prove the rationality of the conclusion above.The research contents and conclusions in this paper are as follows:1.Study on the business model of "blockchain + supply chain finance".First of all,the paper takes the inventory financing business as an example.It is followed by studying the compatibility between the supply chain financial business requirements and the blockchain technology,and analyzing the main participating objects and types of the "blockchain + supply chain finance" business.And a blockchain business model of inventory financing based on alliance chain model is thus created,including the organizational structure featuring People’s Bank of China as the main management node,and the seven-tier platform structure.2.Analysis on supply chain companies’ income of the "blockchain + supply chain finance" business.Firstly,supply chain enterprise income models are created respectively in the environments of non-blockchain and blockchain.And analyses are conducted on incomes under the fixed and unfixed-pricing decisions,with a comparison being drawn between the revenues The final results show that external incentives are not needed for key enterprises in the supply chain to join a blockchain,while blockchain platform rates and how much effort a logistics company puts in exert influence on whether or not distributors and manufacturers participate in a blockchain.That is to say,distributors and manufacturers will do so only when the rates are reasonably lower and the logistics enterprise makes greater effort than a certain level.In the business of "blockchain +supply chain finance",as logistics firms need to put in more effort,this leads to an increase in goods supervision cost.That is why they will participate in a blockchain only if their income exceeds the cost.In conclusion,Logistics enterprises are the key incentive object to make such business models practically successful.3.Study on the incentive of supply chain enterprises in "blockchain + supply chain finance" business.This paper analyzes the key incentive object in such model,a logistics company,the main body carrying out the incentive plan,a bank and a blockchain platform.An incentive model is then built with a bank,a logistics enterprise and a blockchain platform respectively as the principal,agent and participant,on the basis of the principal-agent theory.Through a comparison made between fixed and variable rewards as two incentives provided for a logistics firm by a bank and a blockchain platform,a conclusion is reached that the variable reward incentive influences how much effort the firm may take but the other incentive does not.Hence,variable reward incentive is the right choice to make.It is influenced by factors such as the business capability of a logistics enterprise,the effort it puts in and the mature blockchain technology it applies.4.Case study of the "blockchain + supply chain Finance" business.This paper analyzes manufacturers’ financing needs in the inventory financing business.In the simulated business procedures on a blockchain platform,specific incentive strategies are presented to prove the feasibility of the business model and incentive strategy in the "blockchain + supply chain finance".