Enhancing supply chain resilience in SMEs: the role of business and political ties

Abstract

PurposeThe COVID-19 pandemic outbreak has created disruptions across the supply chain that are beyond the resources of small and medium-sized enterprises (SMEs) to effectively deal with. This study aims to examine the idea that top managers' business and political ties can play direct roles in enhancing SCR in SMEs during COVID-19 by providing access to valuable resources. The study further investigates integrative capability as an underlying mechanism through which the effects of business and political ties can be transformed into enhanced SCR.Design/methodology/approachResponses from 217 SMEs in the country of Jordan were received via an online survey. The measurement and structural models were tested using the partial least squares structural equation modelling (PLS-SEM) technique.FindingsThe study found that business and political ties are positively related to SCR. However, integrative capability fully mediates the relationship between business ties and SCR, whereas it partially mediates the relationship between political ties and SCR.Research limitations/implicationsThe study examined only the direct and indirect impacts of business and political ties on SCR. It could be extended by exploring the conditions under which they influence SCR.Originality/valueThe study explicates the role of top managers' business and political ties on improving SCR in a developing country context. It further examines the mediating role of integrative capability in the relationships between business and political ties and SCR.