IMPACT OF SUPPLY CHAIN RISK ON OPERATIONAL PERFORMANCE; MODERATING ROLE OF INTEGRATION, ORG AMBIDEXTERITY & ENVIRONMENTAL DYNAMISM FOR MANUFACTURING SECTOR OF PAKISTAN

Abstract

For manufacturing sectors, supply chain risks are generally increasing due to various factors like political unrest, natural disasters, pandemics, high fuel prices, high exchange rates, and high taxes.  Further, in today's environment; integration, environmental dynamism, and organizational ambidexterity factors should be well considered by the manufacturing sector.   This research aims to find the moderating impact of integration, environmental dynamism, and ambidexterity for  relationship between operational performance with key supply chain risks like supplier risk, demand risk, and transportation risk. This research was explanatory, applied, quantitative, cross-sectional, and primary in nature.  Responses were collected from 126 responders from various Pakistan-based industries, and analyzed using confirmatory factor analysis and structured equation modeling. All respondents had at least 5 years of working experience.  32% of respondents were having work experience of more than 10 years. 80% of respondents were graduates and above, similarly 87% of respondents were managers and above. The study showed the positive moderating role of integration & org ambidexterity on the relationship between operational performance and supply chain individual risk. Further the negative moderating role of environmental dynamism on the relationship between operational performance and supply chain individual risk (supply risk, demand risk & transportation risk) was found. These finding gives three powerful insights. First the organization should strengthen organizational integration to get better results in today competitive environment. Second compliance to ambidexterity practices gives significant improvement in results.  Third, readiness to change makes organization more effective even in dynamic environment. This finding has a significant theoretical contribution as this relationship was not previously explored in the Pakistan industry by researchers.   This finding has practical implications too as it offers opportunity to industry professionals for learning ways to enhance operational performance by focusing on integration, organizational ambidexterity and environmental dynamism.

Keywords- Supplier Risk (SR), Transportation Risk (TR) , Demand Risk (DR) , Integration (INT), Organizational Ambidexterity (OA) , Environmental Dynamism (ED) , Operational Performance (OP)