Volume 15, Issue 10 · IJARST · ISSN 2319-1783 / 2320-1126

Supplier Relationship Management and Ethical Sourcing Practices as Determinants of Supply Chain Risk Reduction: The Mediating Role of Supplier Compliance

Supplier Relationship Management and Ethical Sourcing Practices as Determinants of Supply Chain Risk Reduction: The Mediating Role of Supplier Compliance is an open-access, peer-reviewed research paper by Md. Sakir Hossain, Sadman Kabir, Kazi Md. Fazlul Karim, Dr. Md. Nokir Uddin, published in Volume 15, Issue 10 of the International Journal of Advanced Research in Science and Technology (IJARST), a UGC-approved journal (Print ISSN 2319-1783, Online ISSN 2320-1126).

Author

Md. Sakir Hossain, Sadman Kabir, Kazi Md. Fazlul Karim, Dr. Md. Nokir Uddin

Abstract

To explain how governance becomes risk-reducing in practice, this study develops and tests a mechanism-based model that positions Supplier Compliance as the central pathway connecting governance investments to Supply Chain Risk Reduction. Four governance dimensions are specified as antecedents: Supplier Collaboration (joint planning, information sharing, joint problem solving, long-term orientation), Ethical Compliance Evaluation (codes of conduct, audits, corrective-action follow-up, enforcement routines), Transparent Sourcing (traceability, upstream visibility, disclosure, access to risk information), and Agreement Governance (contractual clarity, monitoring rights, enforceability, structured escalation/remediation provisions). A quantitative cross-sectional survey of 377 supply-chain and sourcing professionals was analyzed using PLS-SEM with bootstrapping. Measurement reliability and validity checks supported interpretation of the structural model. The governance dimensions jointly explain a substantial share of Supplier Compliance (R²≈0.403). Governance plus compliance explain meaningful variance in Supply Chain Risk Reduction (R²≈0.453), capturing improved capability to anticipate, mitigate, respond to, and recover from supplier-related disruptions, including those triggered by ethical non-compliance. Structural results show differentiated direct effects on risk reduction: Supplier Collaboration and Ethical Compliance Evaluation have significant positive direct impacts, suggesting immediate benefits from relational routines and credible enforcement for prevention and response coordination. Transparent Sourcing and Agreement Governance do not show significant direct effects at conventional thresholds, implying that traceability/visibility systems and contractual controls alone do not automatically reduce disruption exposure. Mediation tests indicate that compliance significantly mediates each governance–risk relationship, showing that governance reduces risk primarily when it produces embedded supplier routines (training, audit cooperation, timely corrective-action closure, continuous improvement) rather than remaining documentation- or infrastructure-heavy.

Keywords: Supplier Relationship Management; Ethical Sourcing; Supplier Compliance; Supply Chain Risk Reduction; Governance; Transparency; Contract Governance.

DOI: https://doi.org/10.62226/ijarst20262854

 

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DOI

10.62226/ijarst20262854

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How do you cite this paper?

Md. Sakir Hossain, Sadman Kabir, Kazi Md. Fazlul Karim, Dr. Md. Nokir Uddin — “Supplier Relationship Management and Ethical Sourcing Practices as Determinants of Supply Chain Risk Reduction: The Mediating Role of Supplier Compliance.” International Journal of Advanced Research in Science and Technology (IJARST), Volume 15, Issue 10. DOI: 10.62226/ijarst20262854.

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