Supply chain risk management and operational performance in the food retail industry in Zimbabwe

Le-roy T. Mutekwe,Elizabeth Chinomona,Chengedzai Mafini

doi:10.4102/ac.v20i1.83

Abstract

Orientation: Supply chain risk management in the Zimbabwean business context is under researched, presenting numerous opportunities for further empirical investigations. This article is an attempt to address manifest research gaps in this area, using the food retail environment as a practical case.Research purpose: To investigate the nexus between supply chain risk management and operational performance in the food retail industry in Zimbabwe.Motivation for the study: The food retail industry in Zimbabwe faces numerous supply chain risks, as most of the products sold are imported. It is essential to understand how the management of these supply chain risks impacts the operational performance of firms.Research approach, design and method: The study employed a quantitative survey design, using a sample of 227 food retail firm managers and supply chain professionals based in Harare. The collected data were analysed using structural equation modelling.Main findings: The results of the study showed significant positive relationships between supply chain risk management and risk information sharing and risk analysis and assessment. Further significant positive relationships were observed between risk analysis and assessment and risk-sharing mechanisms. In turn, risk-sharing mechanisms significantly predicted operational performance. However, no significant direct relationship was observed between supply chain risk management and operational performance.Practical/managerial implications: The study demonstrates that the operational performance of food retailing firms can be improved significantly through the institutionalisation of the mediating variables (risk information sharing, risk analysis and assessment, risk-sharing mechanisms) considered in this study. Management in the food retail industry may use the results of this study as a problem-solving framework for addressing operational constraints.Contributions/value-add: The study provides information that aids in the understanding of supply chain risk management, risk information sharing, risk analysis and assessment, risk-sharing mechanisms and operational performance, as well as the connection between them in a food retail context.

Highlights

Introduction and backgroundThe food retail industry in Zimbabwe has grown significantly in the past decade
The aim of this study is to examine the nexus between supply chain risk management (SCRM) and operational performance (OP) in the food retail industry in Zimbabwe
Six hypotheses were tested to show how the constructs are related from the independent variable (SCRM), the mediating variables (SCRIS, supply chain risk analysis and assessment (SCRAA) and Supply chain risk-sharing mechanisms (SCRSM)) up to the outcome variable (OP)

Summary

Introduction

The food retail industry in Zimbabwe has grown significantly in the past decade This growth is primarily attributed to the dollarisation of the economy at the onset of 2009 when a new government of National Unity was formed (Chikweche 2015; Grant Thornton 2014; Mukuhlani 2014; Ndlovu 2019). The Zimbabwean retail marketplace subsequently became dominated by a relatively large number of retailers (Vutete & Vutete 2015) Prior to this brief economic recovery, most retail supply chains had experienced severe turbulence between 2000 and 2008, characterised by unparalleled inflation levels, leading to the collapse of numerous business operations (Ngamanya & Chidakwa 2017; Tinarwo 2016). Key supply chain obstacles such as a dysfunctional political and economic environment coupled with competition from imported alternative products http://www.actacommercii.co.za

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Conclusion