Examining the impact of Russia-Ukraine conflict and China support on the supply chain of German family-owned SMEs in 2022

Abstract

The geopolitical situation created by Russia and China over Ukraine has made it difficult for businesses in Germany, mostly small and medium-sized enterprises, to manage their logistics and supply chain processes effectively. The objective of this paper was to examine the impact of the geopolitical situation on the supply chain of German family-owned SMEs in 2022, focusing on the Russia-Ukraine conflict and China. The researchers used a quantitative research study that sampled 50 participants drawn from four family-owned SMEs in Germany. Questionnaires were used to collect data from the participants. The path analysis results reveal a significant relationship between price changes and Germany's family-owned SMEs’ supply chain processes (b = 0.716, t = 15.469, t < 0.05). The positive sign indicates that an increase in the independent variable results in an increase in the dependent variable. The positive sign indicates that an increase in organizational characteristics increases attitude towards green practices. The study concludes that supply inflation, price cost, and supply cost fundamentally affect the supply chain processes of Germany-owned SMEs. The German government and other stakeholders in the SME sectors should develop policies that aim to provide financial and regulatory assistance to small and medium-sized enterprises in Germany through public-private partnerships.