Value of Enterprise Risk Management Integration and Supply Chain Performance: Mediating Role of Firm’s Resilience Capability

Every firm aims to generate profit by applying cost-cutting and customer satisfaction approaches in a volatile market. Based on the resource-based theory, this study explored the concept of risk management integration for Nigerian firms regarding supply chain performance. The study proposed a significant relationship between enterprise risk management integration with firm resilience and the supply chain performance of different sector firms. Furthermore, the study also examines the mediating role of firm resilience between enterprise risk management integration and supply chain performance. Data from 572 responses from Nigerian firms were analyzed using AMOS V-26 and Applied Structural Equation Modeling (SEM) to evaluate the validity and reliability. The study findings revealed that factors considering enterprise risk management significantly influence firm resilience and supply chain performance. Firm resilience partially mediates between enterprise risk management integration and supply chain performance. The study concludes that firm resilience helps to enhance supply chain performance through risk management strategies and contingent capabilities. Plain language summary Therefore, our study contributes to the existing survey of ERM and supply chain performance. It will explore ERM integration in businesses and establish the degree to which it influences supply chain performance. Numerous studies have examined the concept of enterprise risk management integration individually with the supply chain process by applying a quantitative approach and prior studies have focused less on quantitative studies. Therefore, based on a theoretical framework, our research contributed to the prior literature on enterprise risk management integration toward a firm’s supply chain performance to fill this gap. Secondly, the study explored the significant relationship of ERMI with firm resilience for Nigerian manufacturing firms. Thirdly, the mediating role of firm resilience between enterprise risk management integration and manufacturing supply chain performance endeavors. This research aimed to support future research and firm policymakers. Our study explored the individual-level ERMI incidents gap in knowledge on SCP.