SME supply chain resilience in disruptive times: the effects of supply chain robustness, access to government assistance and disruption intensity

Abstract

Purpose

This study investigates the antecedents of supply chain resilience of small and medium-sized enterprises (SMEs) and the effects of government assistance and disruption intensity in long-term disruptions.

Design/methodology/approach

This study collected data from 626 SMEs in Australia in 2022 and analysed data using partial least squares structural equation modelling.

Findings

The study empirically confirms that digital capabilities, prior experience in disruptions, supplier proximity and relationships are antecedents of supply chain resilience of SMEs, with supply chain robustness as a mediator. It further confirms that SMEs' access to government assistance positively moderates the relationship between digital capabilities and supply chain robustness. The disruption intensity moderates the relationships between supplier proximity and supply chain robustness with supply chain resilience. Severe disruptions weaken the effects of prior disruption experiences and supplier relationships on supply chain resilience.

Practical implications

The findings inform SME practitioners of the importance of building supply chain robustness, leveraging their prior experience, supplier proximity and relationships and capabilities and flexibility for dynamic supply chain structures when disruptions are intense.

Originality/value

The novelty of our study is the use of the Contingent Resource-Based View to understand the effects of firm and supply chain-level antecedents on supply chain robustness and resilience, considering the contextual contingencies of disruption intensity and government assistance. The focus on long-term disruptions extends the conventional supply chain resilience studies on supply and demand disruptions of small scale. We also explore the firm-level effects of government assistance, which extends the commonly tested economic-level effects. Furthermore, we investigate supply chain robustness and resilience as different but connected constructs, deviating from common approaches. The finding that the relationship between digital capabilities and supply chain robustness, not the relationship between digital capabilities and supply chain resilience, becomes stronger with higher access to government support shows the importance of this approach to investigating specific effects.

Citation

Nakandala, D., Chen, J. and Chikweche, T. (2024), "SME supply chain resilience in disruptive times: the effects of supply chain robustness, access to government assistance and disruption intensity", Business Process Management Journal, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/BPMJ-02-2024-0073