Investigating key factors influence supply chain collaborative relationship and risk management in Chinese SMEs

The sustainability of small and medium-sized enterprises (SMEs) makes a significant contribution to job position and economic growth in China. However, SMEs face various challenges and uncertainties in the Chinese business environment. This study proposes a practical approach for Supply Chain Collaborative Relationship (SCCR) building to mediate adverse impacts from supply chain risks through leveraging partners' critical resources. The Resource-based View (RBV) and Transaction Cost Economics (TCE) are employed in line with theoretical structure building in this study. Theories of Guanxi, collaborative advantage, and risk management have also been used. A combination of qualitative and quantitative research (Mixed-Method Research) approaches are employed in the study. The investigation starts with a sample of 5 research participants from executives of Chinese SMEs using qualitative research; its results are further elaborated using a subsequent survey of 216 SMEs. Data is analyzed via thematic approach (qualitative results) and the combination of SEM and CFA modeling (quantitative results). Results show the building of SCCR contributes to highly functional and stable alliances in Chinese SMEs, which has significant influences in motivating partners' willingness to share risks and resources to support supply chain risk management. This study furthermore manifests that building of SCCR should depend on either interpersonal and inter-organizational level interactions, while interpersonal relationships between executives has significant influence to SCCR development.