ASSESSING SUPPLY CHAIN FINANCE ADOPTION BARRIERS IN INDIAN BANKING: A BEST-WORST METHOD FRAMEWORK ANALYSIS

Abstract

The existence of barriers in the banking industry's supply chain affects banks' productivity and efficiency and makes strategy execution difficult. The purpose of this study is to list and prioritize the barriers of SCF adoption to the banking industry. It uses a three-phase method to identify and prioritize the essential barriers to the implementation of SCF. An extensive literature review was done which identified more than 100 barriers, among them 10 were shortlisted based on their occurrence frequency. Experts’ opinion was taken with the help of questionnaires in the second step to finalize the barriers. The Best-Worst Method is used in the last step to prioritize and rank the barriers. SCF barriers were found by thoroughly reviewing the literature and submissions from the industry. The BWM approach's findings indicate that "Technology and Information related barriers" are restrictive and the main thing preventing the banking industry from growing followed by “External and Organizational Barrier”. Among specific barriers ‘An inadequate technological system and poor technological capability’ barrier acts as an important barrier, so they requires specific considerations from the upper levels of management. This paper focuses on barriers related to SCF adoption in banking industry; other barriers have not been explored. The research relies on the opinions of an expert panel to gather information specific to the Indian environment. Decision-makers and strategists might find this research helpful in understanding the ongoing efforts to achieve full implementation of SCF in the banking sector. This research offers useful data about the problems of the banking industry by evaluating SCF barriers and providing answers to important questions about which are the most important barriers to look over first. Around the globe, the banking sector is regarded as one of the important drivers of economic growth. India is working to improve the banking industry's growth and development in many areas including operational efficiency, financial viability, and creating employment opportunities, but the existence of SCF barriers makes this challenging to do. Thus, to understand the impact of the SCF barriers on the Indian banking sector, it is essential to analyze their significance. The study uses the BWM approach to model SCF barriers within the banking industry, demonstrating how understanding barriers can improve the efficiency and productivity of SCF in the banking industry.