Liquidity Resilience and Supply Chain Finance Adoption across Textile Exporters

Abstract

The contemporary global trade environment presents significant challenges for export-oriented manufacturing sectors, particularly regarding working capital management and financial stability. This study investigates the impact of supply chain finance adoption on the liquidity resilience of textile exporters facing systemic macro-economic and supply chain disruptions. By employing a rigorous difference-in-differences analytical framework, the research evaluates how integrating advanced supply chain finance mechanisms such as reverse factoring and dynamic discounting influences the capacity of textile firms to maintain operational liquidity during periods of high market volatility. The empirical analysis utilizes a comprehensive dataset of textile exporters over a longitudinal period spanning pre-shock and post-shock environments. Findings indicate that firms adopting supply chain finance solutions exhibit a statistically significant enhancement in their liquidity resilience index compared to non-adopting peers. Furthermore, the difference analysis reveals heterogeneous effects, suggesting that the benefits of supply chain finance are more pronounced for small and medium-sized exporters with historically constrained access to traditional credit markets. This paper contributes to the intersection of corporate finance and supply chain management by providing robust empirical evidence that collaborative financial mechanisms serve as critical buffers against external liquidity shocks, offering actionable insights for industry practitioners and policymakers aiming to stabilize global supply networks.