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Do vulnerability mitigation strategies influence firm performance: the mediating role of supply chain risk

Zulqurnain Ali (School of Management, University of Science and Technology of China, Hefei, China)
Bi Gongbing (School of Management, University of Science and Technology of China, Hefei, China)
Aqsa Mehreen (School of Public Affairs, University of Science and Technology of China, Hefei, China)

International Journal of Emerging Markets

ISSN: 1746-8809

Article publication date: 11 May 2021

307

Abstract

Purpose

Currently, small and medium enterprises (SMEs) are facing different types of risk, and mitigating these risks is the primary concern for the emerging firms. This study intends to investigate “do vulnerability mitigation strategies (VMSs) predict firm performance (FP)”? Moreover, it explores the mediation mechanism of supply chain risk (SCR) in the association between VMSs and FP.

Design/methodology/approach

Using a survey method, the authors recruited 355 textile SME entrepreneurs and tested their proposed model and hypotheses in AMOS.

Findings

The findings depict that all VMSs significantly minimize SCR, which subsequently enhances FP. Moreover, he atudy also identifies supply chain finance (SCF), a new VMS in the context of textile SMEs.

Practical implications

The findings help SME officials to minimize SCR through proper implementation of VMSs in the firm's daily operations. SCF is strongly recommended to SMEs because it optimizes working capital and minimizes the risk of default.

Social implications

This research supports SMEs to overcome vulnerabilities using VMSs and provide sustainable employment to individuals in the society.

Originality/value

This study reviews four VMSs and how these strategies simultaneously mitigate SCR and enhance SME performance in the emerging market context, which was skipped in the literature of supply chain management. Moreover, the study identifies SCF as a significant risk mitigation strategy for SMEs.

Keywords

Acknowledgements

This research was supported by the Natural Science Foundation of China (nos. 71731010 and 71571174). The authors are thankful to the Editor, Area Editor (Assoc. Prof. Ziaul Haque Munim) and three anonymous reviewers for their supportive feedback to improve the earlier version of this manuscript.

Conflict of interest declaration: This research has no any conflict of interest.

Citation

Ali, Z., Gongbing, B. and Mehreen, A. (2021), "Do vulnerability mitigation strategies influence firm performance: the mediating role of supply chain risk", International Journal of Emerging Markets, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJOEM-04-2020-0397

Publisher

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Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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