The effects of supply chain viability on supply chain performance and marketing performance in case of large manufacturing firm in Ethiopia

Abstract

Goal: COVID-19 has put the supply chain (SC) through exceptional shocks and disruptions that have never been seen before. It put existing SCs' capabilities to a severe test. Moreover, due to the pandemic, demand and supply have been imbalanced, which has led to questions about societal and SC survivability. This study examines the effects of firms' SC viability on SC and marketing performance. Design/Methodology/Approach: An explanatory research design was employed to examine the relationship between the antecedents of SC viability, SC, and marketing performance using partial least squares (PLS) structural equation modeling (SEM). Moreover, 5-point Likert scale questionnaires are used as a data collection instrument. Results: The finding shows that both SC resilience, SC agility, and sustainable SC have a positive effect on SC performance. Further, SC viability [SC resilience + SC agility + sustainable SC] has a positive effect on SC performance. SC performance also play partial mediation between SC viability and marketing performance. Limitations of the investigation: The study focused only on a limited number of large manufacturing companies in Ethiopia, which excluded other medium- and small-sized firms due to the ongoing war in the northern part of the country. Moreover, the study focused only on one dimension of sustainability (social aspect). Implicações práticas: O estudo mostra às empresas que os métodos tradicionais de avaliação de risco são insuficientes e não serão mais suficientes para superar uma grave disrupção. Em vez disso, o estudo recomenda que as empresas trabalhem usando determinação antecipada de falhas (AFD) e uma abordagem de equipe vermelha para se preparar para eventos 'desconhecidos'. Além disso, o estudo traz um modelo prático e holístico que mostra a relação entre viabilidade de SC e desempenho de SC e marketing. Originalidade/Valor: Nenhum dos estudos até agora em SC testou os conceitos de sistemas de viabilidade em SCM adotando disciplinas como modelagem ecológica, biológica e cibernética usando PLS-SEM. Consequentemente, contribui para a literatura existente, mostrando novas evidências empíricas de uma forte relação entre viabilidade SC, desempenho SC e desempenho de marketing.