Modeling the enablers of sourcing risks faced by startups in COVID-19 era

Purpose: Startups across all sectors are affected by the COVID-19 pandemic and are facing a formidable challenge in terms of marketing and operations. Most of the startups have experienced a downturn in demand and supply due to COVID-19 led disturbances in sourcing networks. This paper aims to identify, analyze and categorize the significant risks influencing sourcing operations in startups during the COVID-19 era in India, using the total interpretive structural modeling (TISM) approach. Design/methodology/approach: Eight enablers were identified through literature review and expert opinions from various startups in India. This study adopted the TISM approach to analyze the inter-relationships between the enablers. Multiplication Applied to Classification (MICMAC) analysis was used to rank the sourcing risk enablers and classify them as autonomous, independent, linkage and dependent enablers. Findings: The results indicate “insufficient fund” as the most critical enabler. Network issues and employee flexibility risk were among the other critical enablers that have a high driving power. Supplier risk, quality risk and demand risk were found to have highly dependent on other enablers for implementation. Research limitations/implications: This study mainly focuses on the sourcing risks in startup operations in India. This study can be extended to many other countries. Practical implications: This study will help startup industry managers and practitioners understand the interactions of enablers and identify critical enablers to mitigate risks in startup sourcing operations in the COVID-19 era. Originality/value: The present study identifies the sourcing risk enablers in the COVID-19 era. It is the first attempt to analyze the interrelationship among sourcing risks in startups using the TISM approach.