Supply Chain Orientation and Supply Chain Risk Management Capabilities: Mechanisms for Supply Chain Performance of Agro-Food Processing Firms in Uganda

Abstract

ABSTRACT Today’s agro-food supply chains have become increasingly complex and vulnerable to risks, which affect their performance. Nevertheless, research on agro-food supply chain performance (SCP) is reportedly limited. And the mechanism through which supply chain orientation (SCO) builds SCP, especially in developing economies is less understood. Therefore, this paper explores the relationship between SCO and SCP, and incorporates the mediating role of supply chain risk management (SCRM) capabilities. Cross-sectional survey data collected from 247 agro-food processing firms in Uganda are analyzed by using Partial Least Square Structural Equation Modeling. The findings reveal that SCO positively and significantly influences both SCP and SCRM capabilities. Furthermore, SCRM capabilities partially mediate in the relationship between SCO and SCP. The novelty of this research is twofold: First, it establishes the relationship between SCO and SCP in a unique context of agro-food processing firms in a developing country. Second, it reveals the partial mediating role of SCRM capabilities, thereby addressing the gap of the need to explore the mechanisms through which SCO influences SCP. The fundamental implication of the study findings for practicing managers and other relevant stakeholders in agro-food processing firms in Uganda and other contextually similar economies is that, a focus on SCO can improve SCP, but it is important to further emphasize building SCRM capabilities as mechanisms for maximizing the overall SCP.