The mediating role of innovation between entrepreneurial orientation and supply chain resilience

Abstract

PurposeThe purpose of this paper is to explore whether innovation mediates the relationship between entrepreneurial orientation (EO) and supply chain resilience (SCR) in the context of small and medium enterprises (SMEs).Design/methodology/approachBased on the structural equation modeling the relationships were tested in the proposed model. A self-administered questionnaire was used to collect data from SMEs owners/managers in Yemen. Out of 384 questionnaires, 229 have been used in statistical analysis.FindingsThe results obtained reveal that both EO and innovation have positive and significant effects on SCR. In addition, innovation partially mediates the effects of EO dimensions (risk-taking and proactiveness) on SCR.Practical implicationsManagers and decision-makers of SMEs who want to enhance their firms' resilience to any supply chain disruptions are highly recommended to adopt EO, as well as to develop the innovative capability resulting from it.Originality/valueThe present study emphasizes previous results and provides additional evidence that SMEs' adoption of EO can reinforce their resilience within the supply chain through innovation in light of the disruptions facing supply chains in developing countries.