Enhancing firm performance with supply chain risk management and supply chain resilience

Goal: This study aims to investigate how supply chain risk management (SCRM) impacts firm performance (FP) in Karawo MSMEs, while also considering the mediating role of supply chain resilience (SCR) and the moderating influence of supply chain digitalization (SCD). Design/Methodology/Approach: This study develops a theoretical framework to analyze the influence of supply chain risk management on financial performance, based on resource-based theory (RBT). The analysis involved data collected from 195 micro, small, and medium enterprises in Gorontalo province, utilizing Partial Least Squares Structural Equation Modeling (PLS-SEM) to assess the theoretical hypothesis. Results: The findings indicate that demand risk management (DRM) and regulatory risk management (RRM) substantially enhance FP and systemic capital requirements (SCR). Furthermore, SCR serves as an intermediary in the relationship between SCRM and FP. This study also determined that SCD does not exert a beneficial moderating influence on the connection between SCRM and SCR. Practical implications: This study assists MSMEs in enhancing performance via supply chain resilience. This study further on prior research in the SCM field by establishing a theoretical framework that connects DRM and RRM to risk management. Originality/Value: This research elucidates the impacts of DRM and RRM that influence SCR, grounded in RBT. Secondly, SCR is presented as an intermediary phase connecting SCRM and FP, elucidating the internal mechanism linking the two. This study further examines the role of the SCD component in the link between SCRM and SCR.