Abstract
As an innovative financial model that serves real enterprises and real economy, supply chain finance (SCF) has garnered increasing academic attention for its vital role in driving operational innovation through transforming financial resource allocation (FinResA) mechanisms across supply chains. However, existing studies often focus solely on the benefits to focal firms, overlooking how SCF affects their supply chain partners' operational capabilities. In this article, we fill this gap by examining the spillover effects of focal enterprises' SCF participation on the FinResA and operational outcomes of their supply chain partners, with a focus on optimizing resource distribution within the supply chain. Using a dataset of nonfinancial listed enterprises in period of 2007-2023, we find that SCF significantly improves FinResA efficiency for partners with underallocated resources, thereby enhancing their operational performance. Both the intensity and breadth of digitalization positively moderate this effect, amplifying the benefits of SCF. Conversely, for partners with overallocated financial resources, SCF participation does not produce significant improvements. These findings offer valuable insights for supply chain and operations' managers aiming to optimize SCF strategies and harness digital transformation to enhance operational efficiency.