When more is better (or worse): supply chain resilience, environmental munificence and financial performance.
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Date
2023
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KNUST
Abstract
The role of environmental munificence is to provide external resources to firms, serving as a supplement to the firm’s internal resources, which in turn serve as buffers and slack resources the firms utilize in times of disruptions and unforeseen events. Within the midst of these resources, supply chain in many industries, particularly in the manufacturing sector, is currently facing several environmental issues on a global scale, including natural disasters, technological turbulence, and changing consumer preferences. It is within this stream that this study examines the role of environmental munificence on the relationship between supply chain resilience and financial performance. To achieve this objective, the study adopted the quantitative research approach to empirically analyze the relationship between the study variables. Data was collected from senior managers and executives (i.e., one per firm) from manufacturing firms in Ghana that operate in diverse contexts: food and beverages, chemicals, industrial machinery, plastic and rubber, paper and packaging, textile and clothing. Hierarchical regression using SPSS was employed to examine the relationship between the variables. The results were further confirmed using Mplus (version 7.4). The results revealed that supply chain resilience positively and significantly enhances financial performance. Further, environmental munificence does not significantly moderate the relationship between supply chain resilience and financial performance. The study recommended that operations and supply chain managers should invest reasonable resources in building and maintaining resilience within and around their supply chain. In addition, operations and supply chain managers should be trained on issues of resilience building, the various forms of resilience and how to build internal capability in the form of slack resources and buffers as a form of resilience to mitigate most supply chain disruptions and greatly limit the impact of those that occur.
Description
A thesis submitted to the department of supply chain and information systems, school of business, in partial fulfillment of the requirement for the award of the degree of master of philosophy in (logistics and supply chain management)