Abstract: In the traditional three-tier pull supply chain, the adjacent-tier supplier of the core enterprise can obtain financing funds from the bank by relying on the core enterprise’s purchase order. Then, the adjacent-tier supplier can make advance payments to the deep-tier supplier to resolve its financial distress. In the blockchain technology-empowered three-tier pull supply chain, the blockchain information transparency feature enables the core enterprise and bank to be aware of the deep-tier supplier’s operating information. As such, the deep-tier supplier can obtain financing funds from the bank by relying on the indirect ordering information between it and the core enterprise. By establishing and solving game models, we get the following conclusions. (1) Compared to the traditional adjacent-tier purchase order financing scheme (TPOF), the blockchain-empowered cross-tier purchase order financing scheme (BPOF) can realize a higher equilibrium production quantity; However, the equilibrium purchase prices under BPOF are lower than those under TPOF. (2) When blockchain technology increases the probability of suppliers fulfilling contracts to a low extent, we find that: If the ratio of the advance payments offsetting the procurement payments is at a low or high level, BPOF can simultaneously increase each supply chain member’s profit (namely, BPOF achieves the supply chain’s Pareto improvement); However, if the ratio of the advance payments offsetting the procurement payments is at a medium level, the deep-tier supplier can obtain a higher profit under TPOF than under BPOF. (3) When the increased range for the probability of suppliers fulfilling contracts after blockchain technology adoption is higher than a threshold, BPOF can always achieve the supply chain’s Pareto improvement. (4) When the blockchain usage fee-sharing ratios are at medium levels, the blockchain-empowered hybrid mode of traceability and cross-tier purchase order financing (BHPOF), compared to TPOF and BPOF, can bring higher profits to each supply chain participant.

Key words: Supply chain finance, Blockchain, Pull supply chain, Purchase order financing, Capital-constrained supplier