Connecting supply chain finance and buyer-supplier relationships : Understanding the balance of power and dependency

Supply chain finance (SCF) has gained increasing attention as a mechanism for improving liquidity and supporting financially constrained supply chain partners. Although SCF has been widely discussed from a financial perspective, its relational implications have received little attention. This thesis investigates how SCF influences the balance of power and dependency in buyer–supplier relationships and how existing power dynamics shape attitudes toward SCF solutions, such as reverse factoring and trade credit. The findings show that attitudes toward SCF are strongly influenced by the initial power structure. Buyers typically view SCF as an opportunity to optimise working capital, whereas suppliers may exhibit reluctance when benefits appear unevenly distributed. Moreover, SCF generates three distinct relational outcomes: it can reinforce existing power asymmetry when used in benefits of the dominant firm; buffer supplier vulnerability by improving liquidity and creditworthiness; or increase mutual dependence and strengthen collaboration when implemented with egalitarian intentions. This thesis contributes to the academic debate by demonstrating that SCF is not merely a financial tool but also a relational mechanism that reshapes inter-organisational power. In managerial terms, the results highlight that SCF is most successful when adopted to support — rather than exploit — partners in the supply chain. Future research should continue to examine SCF from a relational perspective and investigate how SCF functions in supply chains where power is imbalanced.