The Effect of Supply Chain Risk Management Practices on Supply Chain Resilience and Performance

Abstract

In recent years, the length and complexity of supply chains have increased significantly due to the acceleration of globalization, changes and uncertainties in industry, market, and economic trends. The trend has made many organizations become vulnerable to supply chain disruptions. Therefore, it is significant to implement appropriate supply chain risk management measures to improve supply chain resilience and firm performance. The global supply chain system depends to a large extent on China, because China's manufacturing industry, as the world's factory, has been at the core of the global supply chain system for the past two decades. However, due to the sudden outbreak and epidemic of covid-19, China's manufacturing industry has been affected by policies such as factory closures, which have severely disrupted the normal operation of the global supply chain system, and many foreign companies have also been forced to suspend production. Hence, how to face the potential risks in the supply chain and be able to quickly respond to sudden interruptions and recover from interruptions is the main problem that today's organizations are facing. This paper aims to review and propose the effects of supply chain management practices on supply chain resilience and performance. The study follows a quantitative method and designs a structured questionnaire to distribute to relevant managers in the manufacturing industry. Structural equation modeling will be used for data analysis. The study predicts that there is a positive relationship between supply chain risk management practices and supply chain resilience and organizational performance. In addition, the ideas and concepts provided in this paper will help future researchers and practitioners to have a more comprehensive and in-depth understanding of supply chain risk management and supply chain resilience which in turn propose future directions and practices for better firm performance.