Moderator (Regulatory) Role of Supplier Relations in the Effect of Supply Chain Risks on Business Performance

Abstract

Purpose – Increasing network activities brought about by the intense competition environment, economic developments, and changes in business life and market conditions drag businesses into an environment where uncertainty and risks increase. These risks that arise in supply chains can often have negative effects on the performance of businesses. In this context, this study, which was carried out with the idea that one of the ways to minimize the negative effects of the risks encountered in the supply chain on the performance of the enterprises is to improve the relations between the suppliers, aims to reveal the moderator (regulatory) role of supplier relations in the effect of supply chain risks that businesses may encounter on business performance.

Design/methodology/approach – The moderator (regulator) role of supplier relations in the impact of supply chain risks on business performance has been examined with the Structural Equation Model (SEM). The questionnaire form prepared for this purpose has been tested on production enterprises operating in Organized Industrial Zones in TRC1 Region.

Findings – The findings reveal that supply chain risks of supplier relationships reduce the negative effects on the performances of businesses.

Discussion – It is possible to say that high level supplier relationships reduce the negative impact of supply chain risks on business performance. It is possible to state that a quality and long-term relationship to be established between suppliers will increase the efficiency and performance of the enterprises by reducing the risks and uncertainties perceived by the enterprises.