Agric. Econ. - Czech, 2022, 68(5):171-179 | DOI: 10.17221/55/2022-AGRICECON

Strategic leadership, environmental uncertainty, and supply chain risk: An empirical investigation of the agribusiness industryOriginal Paper

Denisa Bogdana Abrudan1, Dana Codruta Daianu2, Mădălina Dumitrița Maticiuc1, Nosheen Rafi3, Masood Nawaz Kalyar ORCID...*,4
1 Department of Management, Faculty of Economics and Business Administration, West University of Timisoara, Timisoara, Romania
2 Department of Economics, Faculty of Economic Sciences, Aurel Vlaicu University of Arad, Arad, Romania
3 Faculty of Management & Administration Sciences, University of Sialkot, Sialkot, Pakistan
4 Lyallpur Business School, Government College University Faisalabad, Faisalabad, Pakistan

The present study aims to examine the influence of strategic leadership and environmental uncertainty on supply chain (SC) risk in the agribusiness industry. The notion of SC risk refers to supply risk, delivery risk, and manufacturing process risk, and it is argued that these risks are an outcome of environmental uncertainty. This study postulates that strategic leadership mitigates the detrimental effect of environmental uncertainty on SC risk. On the basis of data collected from 227 agribusiness-related firms, the analysis was performed using partial least squares structural equation modelling (PLS-SEM) to test the hypothesized relationships. The findings suggest that environmental uncertainty has a direct influence on each dimension of SC risk. In addition to that, a high level of strategic leadership mitigates the impact of environmental uncertainty on supply risk and delivery risk. However, the data did not support moderation for manufacturing process risks. Findings imply that firms operating in highly uncertain environments are more prone to risks; however, high levels of strategic leadership help manage uncertainties and mitigate risks.

Keywords: disruptions in supply chain; firm performance; risk-mitigating role of strategic leadership; role of the external environment; supply chain risk mitigation

Published: May 18, 2022  Show citation

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
Abrudan DB, Daianu DC, Maticiuc MD, Rafi N, Kalyar MN. Strategic leadership, environmental uncertainty, and supply chain risk: An empirical investigation of the agribusiness industry. Agric. Econ. - Czech. 2022;68(5):171-179. doi: 10.17221/55/2022-AGRICECON.
Share...
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    Supplementary files:

    Download file55-2022 Agricecon ESM.pdf

    File size: 237.88 kB

    References

    1. Altay N., Gunasekaran A., Dubey R., Childe S.J. (2018): Agility and resilience as antecedents of supply chain performance under moderating effects of organizational culture within the humanitarian setting: A dynamic capability view. Production Planning & Control, 29: 1158-1174. Go to original source...
    2. Birasnav M., Bienstock J. (2019): Supply chain integration, advanced manufacturing technology, and strategic leadership: An empirical study. Computers & Industrial Engineering, 130: 142-157. Go to original source...
    3. Birkie S.E., Trucco P., Campos P.F. (2017): Effectiveness of resilience capabilities in mitigating disruptions: Leveraging on supply chain structural complexity. Supply Chain Management: An International Journal, 22: 506-521. Go to original source...
    4. Bouckenooghe D., Zafar A., Raja U. (2015): How ethical leadership shapes employees' job performance: The mediating roles of goal congruence and psychological capital. Journal of Business Ethics, 129: 251-264. Go to original source...
    5. Chatterjee S., Chaudhuri R., Shah M., Maheshwari P. (2022): Big data driven innovation for sustaining SME supply chain operation in post COVID-19 scenario: Moderating role of SME technology leadership. Computers & Industrial Engineering, 168: 108058. Go to original source... Go to PubMed...
    6. Cerri J., Thøgersen J., Testa F. (2019): Social desirability and sustainable food research: A systematic literature review. Food Quality and Preference, 71: 136-140. Go to original source...
    7. Dubey R., Gunasekaran A., Childe S.J., Papadopoulos T., Luo Z., Roubaud D. (2020): Upstream supply chain visibility and complexity effect on focal company's sustainable performance: Indian manufacturers' perspective. Annals of Operations Research, 290: 343-367. Go to original source...
    8. Durugbo C.M., Al-Balushi Z., Anouze A., Amoudi O. (2020): Critical indices and model of uncertainty perception for regional supply chains: Insights from a Delphi-based study. Supply Chain Management: An International Journal, 25: 549-564. Go to original source...
    9. Fornell C., Larcker D.F. (1981): Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18: 39-50. Go to original source...
    10. Gosling J., Jia F., Gong Y., Brown S. (2016): The role of supply chain leadership in the learning of sustainable practice: Toward an integrated framework. Journal of Cleaner Production, 137: 1458-1469. Go to original source...
    11. Guo S., Liu N. (2020): Influences of supply chain finance on the mass customization program: Risk attitudes and cash flow shortage. International Transactions in Operational Research, 27: 2396-2421. Go to original source...
    12. Gupta A.K. (2021): Innovation dimensions and firm performance synergy in the emerging market: A perspective from dynamic capability theory & signaling theory. Technology in Society, 64: 101512. Go to original source...
    13. Hair J.F., Black W.C., Babin B.J. (2009): Multivariate Data Analysis: A Global Perspective. Upper Saddle River, US, Prentice Hall: 800.
    14. Inman R.A., Green K.W. (2022): Environmental uncertainty and supply chain performance: The effect of agility. Journal of Manufacturing Technology Management, 33: 239-258. Go to original source...
    15. Kock N. (2021): WarpPLS User Manual: Version 7.0. Laredo, US, ScriptWarp Systems: 142.
    16. Kumar S.K., Tiwari M., Babiceanu R.F. (2010): Minimisation of supply chain cost with embedded risk using computational intelligence approaches. International Journal of Production Research, 48: 3717-3739. Go to original source...
    17. Latan H., Jabbour C.J.C., de Sousa Jabbour A.B.L., Wamba S.F., Shahbaz M. (2018): Effects of environmental strategy, environmental uncertainty and top management's commitment on corporate environmental performance: The role of environmental management accounting. Journal of Cleaner Production, 180: 297-306. Go to original source...
    18. Lohmer J., Bugert N., Lasch R. (2020): Analysis of resilience strategies and ripple effect in blockchain-coordinated supply chains: An agent-based simulation study. International Journal of Production Economics, 228: 107882. Go to original source... Go to PubMed...
    19. Peters K., Buijs P. (2022): Strategic ambidexterity in green product innovation: Obstacles and implications. Business Strategy and the Environment, 31: 173-193. Go to original source...
    20. Pournader M., Kach A., Talluri S. (2020): A review of the existing and emerging topics in the supply chain risk management literature. Decision Sciences, 51: 867-919. Go to original source... Go to PubMed...
    21. Sabir M., Ali Y., Ali A., Khan J., Rehman Z.U. (2022): The choice between organic and inorganic farming: Lessons from Pakistan. Renewable Agriculture and Food Systems: 1-8. Go to original source...
    22. Samimi M., Cortes A.F., Anderson M.H., Herrmann P. (2020): What is strategic leadership? Developing a framework for future research. The Leadership Quarterly: 101353. Go to original source...
    23. Shao Z. (2019): Interaction effect of strategic leadership behaviors and organizational culture on IS-Business strategic alignment and Enterprise Systems assimilation. International Journal of Information Management, 44: 96-108. Go to original source...
    24. Shekarian M., Nooraie S.V.R., Parast M.M. (2020): An examination of the impact of flexibility and agility on mitigating supply chain disruptions. International Journal of Production Economics, 220: 107438. Go to original source...
    25. Sreedevi R., Saranga H. (2017): Uncertainty and supply chain risk: The moderating role of supply chain flexibility in risk mitigation. International Journal of Production Economics, 193: 332-342. Go to original source...
    26. Thun J.H., Hoenig D. (2011): An empirical analysis of supply chain risk management in the German automotive industry. International Journal of Production Economics, 131: 242-249. Go to original source...
    27. Vera D., Crossan M. (2004): Strategic leadership and organizational learning. Academy of Management Review, 29: 222-240. Go to original source...

    This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International (CC BY NC 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content