The impact of supply chain risks on supply chain performance: Empirical evidence from the manufacturing of Malaysia

Abstract

Nowadays, competition has shifted from organization to industry level so any disruption can not only disturb organization but also affect the whole industry. Although Malaysia is known from palm oil and rubber manufacturing sector has the highest growth rate (7.1%) and the second contributor to GDP and employer. After extensive literature view, it has found that various disruptions have been reported that not only disrupt Malaysian manufacturing but also a global business but there is no study available the empirically assess these risks. This is an empirical investigation and data was collected through a questionnaire distributed by systemic probability sampling to listed Manufacturing organizations listed in the Federation of Manufacturing Malaysia by emails. Final and purified data was analyzed through Structural Equational Modeling through Smart PLS. Total three types of risks were assessed namely logistic side risks, collaboration side risks, and finance side risks. It has been found that although all three types have a negative impact on supply chain performance only logistic side risks is effecting significantly. This study will help managers to understand how supply chain risks are affecting and what type of risks they should be more aware. Furthermore, various approaches can be proposed for mitigation but there is also a need to verify these approaches for Malaysia.

The Impacts of Operational Risks in the Supply Chain of Construction Projects in Malaysia

“…[26]. The aim of this research is to investigate the loss of own production capacity due to local disruptions that are fire, strikes, accidents, problems in the IT such as viruses in the computers or bugs in the software, damage in the production because of technical issues such as machine breakdown and breakdown of external IT [27].…”