Exploring the link between supply chain resilience and organisational performance

Abstract

Background: This study was prompted by the worsening of the mortality rate of South African small and medium-sized enterprises (SMEs), which is attributed to the emergence of the coronavirus disease pandemic.

Aim: The aim of this study was to explore a strategic avenue to assist SMEs in withstanding market-related hindrances and boost their performance. This strategy is based on optimising SMEs’ supply chain agility by adopting supply chain resilience enablers such as supply chain alertness, visibility, robustness and velocity.

Setting: This study focused on registered South African SMEs operating in the Gauteng, Free State and KwaZulu-Natal provinces.

Method: The study was grounded in the positivist paradigm, which informed its quantitative nature. In total, 407 purposively selected supply chain management (SCM) professionals were identified. The correlation design was used to establish the perceptions of these SCM professionals of the study’s constructs and their predictive relationships using a questionnaire.

Results: The results revealed that three of the four supply chain resilience (SCR) enablers, namely velocity, alertness and robustness, positively and significantly influence SMEs’ supply chain agility (SCA). In contrast, SMEs’ agile endurance significantly influences their performance.

Conclusion: The study established the fact that supply chain resilience practices of alertness, velocity and robustness are critical antecedents of SMEs’ SCA capabilities. Furthermore, SCA was found to be a significant driver of SME performance.

Contributions: This study contributes to the SCR discourse by outlining determinant practices that facilitate SCA and firm performance. Practically, the findings offer strategic insights into key success factors that must be implemented to sustain SMEs’ performance and survival prospects.