Transformational leadership, integration and supply chain risk management in Vietnam's manufacturing firms

Abstract

PurposeDue to an increase in vulnerability, supply chain risk management (SCRM) has gained the attention of both researchers and practitioners. Although different approaches have been widely used to discuss the implementation of risk management, the impacts of leadership factors on SCRM have received little attention. To fill this gap in the literature, this study aims to examine whether transformational leadership and integration facilitate SCRM and enhance performance.Design/methodology/approachUsing 261 Vietnamese manufacturing companies as sample, this study applies partial least squares based structural equation modeling (SEM) to test the proposed hypotheses.FindingsThis study demonstrates three contributions for exist leadership and supply chain literature. First, the characteristics of transformational leadership effectively facilitate the internal and external integration in supply chain with higher responsiveness, visibility and integration. Second, transformational leadership has indirectly effect to supply chain risk management practice (SCRMP) throughout supply chain integration (SCI). Additionally, three dimensions of integration enable SCRM and partially mediate the relationship between transformational leadership and SCRM. Furthermore, SCRM not only plays a partially mediating role in the relationship between internal integration, customer integration and supply chain performance but also fully mediates the relationship between supplier integration and supply chain performance.Practical implicationsThis study addresses that the paper extends the content of the relationship between transformational leadership and SCI by three integration dimensions among of exist literature. Transformational leadership should be literarily included into part of leadership strategy on SCRMPs since it is shown to have an indirectly positive improvement effect on SCRM. In addition, the paper is targeted the supply chain downstream performance (SCDP) with integration and risk management with the concept of considering downstream performance is a key section to confront the external stakeholder and customers, Finally, the authors emphasized companies should be aware of the importance about how to include transformational leadership, SCI and SCRMP into its supply chain management.Originality/valueThis study contributes to the SCRM literature by empirically examining the effect of transformational leadership and SCI on SCRM and performance in Vietnam, which is few and far better than that of developed countries.