Abstract
Enterprises are constantly experiencing higher levels of supply chain disruptions in their operations due to the expansion of industries’ business networks. It becomes very necessary for enterprises to continually assess risks in their business operations. To mitigate the adverse consequences of such potential supply chain risks on the performance of enterprises, it becomes imperative for Ghanaian enterprises to implement adequate supply chain risk management strategies. The purpose of this paper is to outline potential risks in the supply chain network of Ghanaian enterprises and investigate the impact of these potential risks and supply chain risk management (SCRM) strategies on enterprise performance. Data for the study was collected from 210 enterprises in Ghana and analyzed by modeling the constructs of supply chain risks, supply chain risk management (SCRM) strategies and enterprise performance and also measuring the complex relationships among the constructs using a structural approach. The structural model result shows that, enterprises with distinct organizational structures dedicated to supply chain risk management with the purpose of mitigating supply chain risks tend to perform better than their competitors. The results also indicated a negative association between supply chain risks and the performance of Ghanaian enterprises. This research provides direction for managers to adopt and develop adequate enterprise supply chain risk register and supply chain risk management (SCRM) strategies to mitigate the consequences of supply chain risks in their planned business operations.
Highlights
A supply chain is made up of a firm or group of firms whose business activities and processes are associated with the movement of raw materials, products, services, information and capital from their source to the final consumer (Butilca et al, 2011)
The results indicated a negative association between supply chain risks and the performance of Ghanaian enterprises
The research commenced with the identification of potential risks in an enterprise’s supply chain, indicators of supply chain risk management strategies and organizational performance based on literature review
Summary
A supply chain is made up of a firm or group of firms whose business activities and processes are associated with the movement of raw materials, products, services, information and capital from their source to the final consumer (Butilca et al, 2011). The Council of Supply Chain Management Professionals (2009) asserts that Supply Chain Management (SCM) refers to the planning, management and coordination of all business-related activities among supply chain members to improve operating efficiency. Chain management (SCM) can be seen as the active management and effective coordination of supply chain activities to leverage strategic positioning by increasing customer value and achieving a competitive advantage. Chopra & Sodhi (2004) contended that, most enterprises implement strategic plans to protect their planned business operations against frequent low-impact risks in their supply chain; many ignore the consequences of high-impact and low-probability risks. Effective supply chain management requires proper coordination and collaboration of all supply chain members to leverage strategic positioning and improve operational efficiency
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