Enabling manufacturing firms' supply chain performance in the Middle East region through boosting the quality of multi-directional relationship, and supply chain risk dilution: A moderated-mediation model

Abstract

Elasticity and dependability factors are considered fundamental elements that have a significant and direct impact on reducing waste in manufacturing companies' resources as well as their supply chains (SCs) in order to improve their overall performance, as well as improving the performance of these companies' supply chains. This is in addition to not overlooking the effective and important strategic relationship and the role of suppliers to manufacturing companies as a mediating factor in the relationship between the qualities of the multi-directional relationship and mitigating the risks that it may be exposed to during its operational and production process. 156 samples were included in this study out of 743 small to large manufacturing companies in the Middle East region, including Jordan, Turkey, Saudi Arabia, and Egypt, where an experimental examination was conducted of the companies targeted in this study to prove or reject the proposed hypotheses. Structural equation modeling was applied and used to examine the proposed hypotheses. The results of this study indicated that the elements of flexibility and dependability have positive, direct, and statistically significant effects on mitigating supply risks, and this therefore works to improve the performance of the supply chain of manufacturing companies, especially small and medium-sized companies. In addition, the results of this study showed that building strong strategic partnerships with dependable, certified, high-performance, and flexible suppliers has a positive impact on moderating the potential supply risks that manufacturing companies may face in their operational processes, while the results showed that there is no statistically significant effect on the relationship between dependability and mitigate supply risks. This research paper offers empirical evidence for using the quality of the multi-directional relationship within supply risk dilution of manufacturing firms’ context in developing countries for enhancing their supply chain performance. This study provides a clear roadmap and basis for managers and decision-makers in manufacturing companies to focus on the importance of the quality of relationships with suppliers and business partners in their business dealings to limit and mitigate the risks that they may face, which may lead to interruption of the necessary supplies to them.