Supply chain finance and corporate persistent innovation—from the perspective of dynamic capabilities enhancement

In recent years, supply chain finance has developed rapidly in mainland China, and its “supply chain attributes” and “financial attributes” cannot be ignored in enhancing corporate dynamic capabilities. Drawing on the panel data of A-share-listed firms in Shanghai and Shenzhen over the period from 2010 to 2023, this study empirically investigates the influence of supply chain finance on corporate persistent innovation. The outcomes display that supply chain finance can significantly promote corporate persistent innovation. Mechanism analysis indicates that supply chain finance can enhance corporate dynamic capabilities, which is likely to be an important channel for the improvement of corporate persistent innovation levels. Heterogeneity analysis shows that in sample firms holding shares of financial institutions, with high customer concentration, high supplier concentration, and high ESG ratings, the promoting effect of supply chain finance on corporate persistent innovation is more evident. Extended analysis shows that supply chain disruptions can significantly inhibit corporate persistent innovation; persistent innovation can enhance corporate profitability and supply chain stability. The research findings of this paper enrich the studies on the economic consequences of supply chain finance and provide beneficial references and insights for enterprises to adopt supply chain finance, financial institutions to innovate financing models, and the government to formulate precise and effective corporate support policies.