Investigating the Role of Supply Chain Environmental Risk in Shaping the Nexus of Supply Chain Agility, Resilience, and Performance

Abstract

Supply chain environmental risks are pivotal situational factors that significantly influence the intricate relationship between a business’s supply chain agility, supply chain resilience, and its ultimate supply chain performance. This study aims to explore the interplay between supply chain agility, supply chain resilience, and supply chain performance, while also investigating the moderating effect of supply chain environmental risks. Data analysis was conducted using hierarchical regression based on a questionnaire survey involving 416 companies in Taiwan’s manufacturing supply chain. The findings reveal several key insights. Firstly, supply chain agility has a positive influence on supply chain resilience, highlighting the importance of a flexible and responsive supply chain to handle challenges effectively. Secondly, supply chain resilience plays a vital role in determining supply chain performance, underscoring its significance in maintaining operational efficiency and effectiveness. Furthermore, the study identifies that supply chain environmental risks can act as a positive moderator in the relationship between supply chain agility and supply chain resilience. In other words, when faced with environmental risks, companies with higher supply chain agility can leverage this capability to reinforce their supply chain resilience, leading to improved supply chain performance. Additionally, the results shed light on the mediating role of supply chain resilience between supply chain agility and supply chain performance. This suggests that a resilient supply chain acts as an intermediary mechanism through which the positive effects of supply chain agility translate into enhanced overall performance. Given the uncertain and turbulent market environment today, these findings emphasize the importance of adopting supply chain agility and supply chain resilience as indispensable business strategies. Therefore, enterprise leaders and managers should proactively implement measures to enhance these aspects of their supply chain to effectively navigate and overcome environmental risks, ultimately driving supply chain performance.