MEDIATING ROLES SUPPLY CHAIN RESILIENCE CAPABILITIES BETWEEN SUPPLY CHAIN OPERATIONAL RISK DIMENSIONS AND SUPPLY CHAIN PERFORMANCE IN SMES AGRI FOOD MANUFACTURERS

Abstract

Supply chains have grown rapidly in recent decades, with the intention of boosting productivity, improving efficiency, and encountering products 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 operational supply chain risk 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, towards supply chain performance and supply chain resilience capabilities as a mediating role between supply chain risk and supply chain performance. A survey questionnaire was administered by 293 Agri food manufacturers. Use conceptual framework to assess operational supply chain risk dimensions and supply chain performance and mediates by Supply chain resilience capabilities. Uses partial least squares structural equation modelling (PLS-SEM) was utilize the equation modelling procedure was utilized in testing the proposed relationship. In the presence of supply chain risk dimensions towards supply chain performance, demand side risk and manufacturer side risk show the significantly but negatively impact towards supply chain performance while supplier side risk, logistic side risk and information risk shows insignificantly effect towards supply chain performance. The findings contribute to achieving better supply chain resilience plays an important role as a mediator between operational supply chain risk and supply chain performance The study findings are based on the perceptions of managers and the owners of SMEs, and this study is limited to the Agri Food industries in Malaysia. The findings contribute to the theoretical development of risk management issues in supply chain risk and performance among the Agri food SMEs. The findings offer managerial guidance on how supply chain resilience capabilities play an important role between risk and supply chain performance. This paper fulfils an identified need for development of an empirical research in examining the impact of supply chain risk towards performance and supply chain resilience capabilities between supply chain risk and supply chain performance. The result provide practical implications for managing uncertain events and offering insight future research in supply chain resilience.