Determinants of supply chain risk management and performance in agroindustrial firms

Effective supply chain risk management is crucial for the success of agro-industrial firms, as it enables them to navigate the complex and dynamic challenges inherent in the agricultural sector. This study examines the determinants of supply chain risk management and performance in agro-industrial firms in Africa using partial least square structural equation modeling to analyze data from a sample of 367 supply chain managers. The findings show that operational risk management does not have a positive impact on the performance of supply chain, but strategic risk management does. Customer relationship also has a positive impact on the performance of supply chain. Also, the results indicate that supply chain risk management constructs (operational risk management and strategic risk management) positively affects customer relationship. The results suggest that agro-industrial firms in Africa should focus on developing strategic risk management capabilities in order to improve their performance and customer relationships. In addition operational risk management and strategic risk management are also important for agro-industrial firms in Africa, as they may face more strategic risks, such as political instability and economic shocks. The findings have important implications for managers, policymakers, practitioners, and researchers. From a managerial perspective, managers must form alliances with logistics service providers to divest themselves of services like transportation where they lack essential competencies. The study's conclusions may also be helpful to other service sectors, organizations and managers in emerging nations to take into account potential risks and mitigate them with managerial strategies and assist in lowering the risk occur within the organization. Also, the findings suggest that researchers should conduct further research on the role of strategic risk management in agro-industrial firms in Africa, particularly in the context of new and emerging risks. The findings offer practical guidance for managers seeking to enhance their firm's supply chain risk management capabilities.