| Author: | Li, Zhuonan |
| Title: | Token-based innovation in automotive supply chain finance : a new approach to addressing the financing challenges of SMEs - an analysis from the perspective of multi-stakeholder theory |
| Advisors: | Xiao, Guang (LMS) |
| Degree: | DFinTech |
| Year: | 2026 |
| Department: | Faculty of Business |
| Pages: | xi, 291 pages : color illustrations |
| Language: | English |
| Abstract: | The persistent difficulties that small and medium-sized enterprises (SMEs) experience when obtaining funding — characterized as access to capital at high cost and time-consuming processes — represent a significant constraint to SMEs functioning in the automotive supply chain. The fundamental reason that traditional Supply Chain Financing (SCF) models have been ineffective in addressing these long-standing problems of SMEs is due to two primary factors; information asymmetry and the inability to effectively transmit credit throughout various tiers of the supply chain. While emerging technologies such as blockchains and the use of tokenization of real-world assets (RWAs) provide a new technological paradigm for addressing the structural problems of SMEs, it is ultimately the ability to resolve conflicting interests of multiple stakeholders (i.e. core enterprises, SMEs, financial intermediaries, platform operators and regulatory agencies) which will determine the success of the technology. In order to address the current lack of empirical research regarding the practical application and implementation of tokenization within Supply Chain Financing (SCF) in the automotive industry, this study utilizes Multi-Stakeholder Theory as the underlying conceptual framework for analyzing how token-based innovations impact the interests, behaviors and perceptions of relevant stakeholders. A theoretical model is developed with tokenization as the independent variable, and financing performance and collaboration performance as the dependent variables, along with related research hypotheses. The study also examines several practical implementation aspects, including the identification of tokenized assets, types of tokens (i.e. security tokens, utility tokens and stable coins), functional design and development of an innovative token financing model based on blockchain technology and smart contracts to increase the financing efficiency and accessibility of SMEs while reducing financing thresholds and utilizing smart contracts to automate financing transactions and thereby decrease transaction costs. The results of in-depth architectural and practical studies of the use of platforms such as Ant Group's "Double Chain Link" (Shuanglian Tong), demonstrate that the primary function of tokenization -- enabling the cross-tier flow of a company's internal credit and real time management of tangible goods via trusted data and smart contracts --has significantly enhanced the access to financing for Small-Medium Enterprises (SMEs). One of the most important findings of the study was the significant contribution of the incentive mechanisms of tokens to align the incentives of all relevant stakeholders to create a collaborative environment. In addition to evaluating market acceptance and liquidity of the tokenized financing model, the study evaluated the actual financial condition of participating enterprises via questionnaires and in-depth interviews. The results of these evaluations demonstrated that the use of tokenized financing can significantly reduce an enterprises' financing cost, increase the liquidity of an enterprises' assets, and improve their overall financial position. However, the study found significant differences in the perceptions of risk between different types of participants; financial institutions were primarily concerned with technical issues and the risk associated with regulatory compliance, SMEs were concerned about the technical complexity of the process, and the operational risks, while regulators were primarily concerned about system wide risks, and the potential for erosion of monetary sovereignty. At both the theoretical and technical levels, this study makes several contributions. At the theoretical level, the study utilizes the Multi-Stakeholder Theory for the first time in the context of blockchain finance, creating a new analytical framework that increases our understanding of how multi-parties collaborate, and co-create value in digital financial environments. At the technical level, the study provides management insights to the developers of blockchain-based platforms for designing inclusive token economies, and policy recommendations to regulators for balancing the benefits of innovation with the potential risks of unregulated technology, such as regulatory sandbox's. Together, the contributions of the study will be able to provide guidance to the financing of innovation by SMEs in the automotive industry, and facilitate the widespread adoption, and sustainable development of this emerging financing model, while providing solutions to the perceived challenges of using this model, including regulatory risk, technical barriers, and market acceptance. |
| Rights: | All rights reserved |
| Access: | restricted access |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| 9296.pdf | For All Users (off-campus access for PolyU Staff & Students only) | 3.28 MB | Adobe PDF | View/Open |
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