Does the stakeholder's relationship affect supply chain resilience and organizational performance? Empirical evidence from the supply chain community of Pakistan

Abstract

PurposeThe aim of this paper is to investigate the role of the stakeholder's relationship with supply chain resilience (SCR) and organizational performance (OP) using the lens of stakeholder theory in the manufacturing and service industry. Investigating the supply chain community in Pakistan, this paper explores the relationship between SCR, OP and the stakeholder's relationship (including customers and suppliers).Design/methodology/approachA partial least square (PLS) – structural equation modeling (SEM) technique using SmartPLS 3.3.3 was used to test the hypotheses. Data were collected through a survey (questionnaire) completed by 202 supply chain representatives. All respondents were supply chain professionals working in different organizations in Pakistan.FindingsThe findings of the study revealed that supplier relationship (SR) and customer relationship (CR) have a positive and significant impact on SCR and a positive and significant relationship between SCR and OP. A positive and significant relationship between customer relationship and OP was also noted. The mediating role of SCR is also found positive and significant.Practical implicationsThe outcomes of the study will help managers to strengthen SCR through relationship management. The study is also helpful to increase OP through stakeholder management.Originality/valueThis study empirically tests an inclusive model with a PLS-SEM technique where SCR plays a mediating role in the mechanism, which is crucial since the supplier and customer (stakeholder) relationship has been never tested to gauge the OP by positioning SCR as a mediator while using the lens of stakeholder theory.