Navigating Supply Chain Risk: Exploring the influence of Supply Chain Integration and Agility Performance in Sri lankan Apparel Manufacturing Companies

Abstract

The ever-changing and volatile nature of today's economic climate places a significant strain on supply chain management. Manufacturing organizations, particularly in developing nations like Sri Lanka, are exposed to a number of hazards that could impair overall performance and disrupt supply chain operations. Utilizing the Resource Based View (RBV) and Dynamic Capability View (DCV), this study sought to determine the effects of supply chain risk on supply chain integration and agility performance. The study is quantitative and cross-sectional, with data collected by a standardized questionnaire. 165 apparel manufacturing plants registered under the Board of Investment (BOI) in Sri Lanka were selected for the survey with the systematic random sample. Data analysis was performed using SPSS 20.0 and Structural Equation Modeling with Smart PLS. The findings show that supply chain risk has a significant positive impact on supply chain integration. Furthermore, Supply chain integration impacts on the agility performance. The results support the presence of mediation of supply chain integration on the supply chain risk and agility performance. These findings point to a positive and significant relationship between supply chain risk and supply chain integration. In addition, supply chain integration has a positive effect on the agility performance. The findings corroborate the existence of a mediating effect of supply chain integration on supply chain risk and agility performance. The results of this study indicate that organizations mitigate supply chain risk by fostering customer and supplier partnerships that boost agility and flexibility. Moreover, supply chain integration can assist businesses lessen the negative effects of supply chain risk on their agility performance by enhancing coordination, communication, and responsiveness across the various phases of the supply chain.