Supplier Collaboration and Business Growth: The Mediating Role of Supply Chain Resilience in SMEs

Abstract

This study investigates the relationship between supplier collaboration and SME growth, as well as the mediating role of supply chain resilience. A quantitative cross-sectional research design was employed, and data were collected from registered small and medium-sized enterprises (SMEs), including business owners, supply chain managers, and procurement managers operating in major industrial and commercial sectors in Pakistan. A structured questionnaire based on a five-point Likert scale was administered to respondents using a purposive sampling technique, targeting individuals directly involved in supplier relationship management. For data analysis, Partial Least Squares Structural Equation Modeling (PLS-SEM) was conducted using SmartPLS. The measurement model was assessed through Cronbach’s alpha, Composite Reliability (CR), Average Variance Extracted (AVE), and discriminant validity. Path coefficient estimation procedures were used to test the direct effects, while bootstrapping techniques were employed to examine the mediating effect of supply chain resilience. The findings revealed that supplier collaboration positively and significantly contributes to both supply chain resilience and business growth. Furthermore, supply chain resilience was identified as a significant predictor of business growth and was found to significantly mediate the relationship between supplier collaboration and business growth. The results are discussed within the frameworks of Resource Dependence Theory, Dynamic Capabilities Theory, and the emerging field of supply chain resilience. Based on the findings, policy and managerial recommendations are provided for SME owners, policymakers, and supply chain practitioners.