Use of Supply Chain Risk Management Approach for Achieving Firms’ Performance

Abstract

Purpose -The purpose of this paper is to examine effectiveness use of supply chain risk management approach for achieving firms’ performance. Design/Methodology/Approach- A cross-sectional approach was adopted with primary data collected. The data yielded a response rate of 375 from electricity firms in Kenya. The data collected were put through rigorous statistical analysis to test content validity as well as reliability. Further, simple linear regression model was used to test relationships between strategic sourcing and firm’s performance. Findings- The finding proposes that a successful execution of supply chain risk management (SCRM) increases organizational performance through regular risk assessment and training of all stakeholders. Further, the paper reveals that majority of electricity firms were reluctant in sharing supply chain risk information. Research limitations/implications-The study provides managers with insightful understanding and the application of SCRM for achieving firm’ performance. Also, the study show that supply chain risk management generally increases the performance of electricity firms but not all SCRM approaches are covered in the study and therefore a similar study can done in different sector to validate the findings. Originality/Value The study provides a holistic approach in the application and use of SCRM for achieving firms’ performance. Also, the identified gaps provides future direction in research and encourage new techniques for combating SCRM for achieving firm’ performance.