INVESTIGATING AND EVALUATING THE INFLUENCE OF SUPPLY CHAIN STRUCTURE ON SUPPLY CHAIN RISK

Zehrah Sayed,Bernadette Sunjka

doi:10.7166/27-3-1645

Abstract

Supply chains are exposed to disruptions resulting from internal or external factors that hinder the performance of one or more of their constituent entities. An exploratory study was conducted to determine whether supply chain structure (SCS) influences supply chain risk (SCR), in the context of small and medium enterprises (SMEs) in South Africa. Thematic content analysis was applied to the case data of four Gauteng-based manufacturing SMEs (SMMEs), and summarised in a literature-developed, conceptual structure-risk framework. Results indicate that SCS does influence SCR. Investment in facility infrastructure and supplier relationships appear to be the most influential features. SCS also affects the operational and financial risk of an enterprise. These risks drive the SMEs’ strategy and reputation, and consequently drive the corresponding risk dimensions (i.e., strategic and reputation risks). These findings are limited, and should not be generalised to all South African SMEs.

Highlights

Small and medium enterprises (SMEs) are the lifeblood of any economy
This exploratory study aimed to determine whether or not the supply chain structure (SCS) has an influence on supply chain risk (SCR) in South African small and medium manufacturing enterprises (SMMEs)
This was achieved through the development of a structure-risk framework that facilitated the grouping of qualitative data about the structural features and the risks that they raise for the small and medium enterprises (SMEs) and the supply chain

Summary

Introduction

Small and medium enterprises (SMEs) are the lifeblood of any economy. The operations of South African small and medium manufacturing enterprises (SMMEs) contribute significantly to the country’s employment levels and to competitiveness in the global market. Chain risk management (SCRM) in SMEs is still a growing area of interest for practitioners and academics. Frameworks to classify and manage SME-risks have been proposed in recent years; supply chain structure (SCS) has not been emphasised. It follows that the impact of the SCS must be investigated to understand its contribution to supply chain risk (SCR) [2]

Methods

Results

Discussion

Conclusion