ASSESSMENT OF SUPPLY CHAIN RISK MATRIX MESUREMENT. CASE STUDY: AGRI FOOD SMES ENTREPRENUERS IN SOUTHERN REGION MALAYSIA

Abstract

Supply chains have grown rapidly in recent decades, with the intention of boosting productivity, improving efficiency, and encounter the product in emerging markets. The increasing complexity of a supply chain reduces visibility and, as a necessary consequence, control over the process. To accomplish this, we must first identify potential risks and assess their consequences, while also developing risk mitigation policies to locate and relocate resources to deal with them. The purpose of this research is identifying a supply chain risk matrix for Agri food SMEs, which will be used to develop an appropriate supply chain risk mitigation strategy for entrepreneurs. The framework addresses supply-side risk, manufacturer-side risk, demand-side risk, logistic risk, information risk, and environmental risk towards supply chain performance. A comprehensive interview session was completed by 5 Agri Food Entrepreneurs based in the state of Johor. To assess most significant risks to supply chain performance were identified using variable qualitative measure risk variable f(frequency) versus qualitative measure I(impact)with an emphasis on the value of risk variable that affected Agri food entrepreneurs supply chain over the past three years. To supports the concept of SME supply chain risk, supply chain risk matrix mapping was performed. According to the results, the most impactful and high frequency supply chain risks are logistic risk and demand side risks. For future study, there is a empirically verification of this identification of supply chain risk. The theoretical contribution of this study is support of theory Resource Based View (RBV) and dynamic capabilities theory as supportive theory.