Role of Outsourcing and Collaboration in Ensuring Supply Chain Resilience of Sri Lankan SMEs during COVID-19 Outbreak

Abstract

The global spread of the novel coronavirus has had a devastating impact on supply chains around the world. Thus, the core notion of supply chain resilience is of increasing interest to organizations. This is especially true for Small and Medium Enterprises as the amount of uncertainty that is prevalent in modern-day business has brought new challenges in their quest to be successful. Nevertheless, a preliminary prerequisite for improved supply chain resilience is an understanding of the network that connects the business. Realizing this scenario, the present study endeavors to explore the influence of outsourcing and collaboration on supply chain resilience of SMEs during the COVID-19 pandemic in the Sri Lankan context. Hence, a survey research design was undertaken by sourcing primary data through a self- administered questionnaire using a sample of 75 SMEs. The variables were statistically analyzed using regression techniques and correlation analysis. The study revealed that there is a statistically significant relationship as well as a positive impact between outsourcing and collaboration on supply chain resilience. To the best of the authors’ knowledge, the present study is one of the first papers to explore the interrelationship existing between outsourcing and collaboration on SME supply chain resilience. The findings are sure to provide novel insights into the phenomenon of supply chain resilience as the study provides insight in terms of the impact of both outsourcing and collaboration functions on SME supply chain resilience during adverse times.