Empirical research on the relationships between demand- and supply-side risk management practices and their impact on business performance

Purpose: This paper integrates research on demand- and supply-side risk management practices to better explain how to achieve competitive advantage in dynamic business conditions. The purpose of this study is to develop a model linking supply chain flexibility, agility, robustness and resilience and to investigate its relationships and impact on business performance. Design/methodology/approach: The authors conduct a review of existing literature to derive their hypotheses and operationalize the respective constructs. The formulated research model is then validated applying partial least squares structural equation modeling on survey data from 89 multi-national companies based in Europe. Findings: The authors find a significant positive relationship between supply chain flexibility and supply chain agility as well as supply chain robustness and supply chain resilience, respectively. Additionally, it is argued that supply chain flexibility, agility and resilience have significant positive impact on individual dimensions of business performance. Originality/value: The relationships between supply chain flexibility, agility, robustness, resilience and business performance are investigated and empirically validated altogether in a single model for the first time, providing a clear separation of these terms and shedding further light on the management of supply chain risks.