A moderated-mediation analysis of supply chain efficiency, flexibility, integration, and risk management

Abstract

The preparedness and stability of the defense-industry supply chains have been challenged by significant disruptions and risks that can be critical to national security. Despite increasing importance, limited studies have explored the underlying factors (i.e., efficiency, flexibility, integration, and risk management) impacting the supply chain operations of national defense companies. Hence, this study aims at exploring the relational impact of supply chain risk management (SCRM) practices and organizational performance by hypothesizing a moderated-mediation model involving operational efficiency, flexibility, and supply chain integration (SCI). Using the information processing theory, the survey-based data of 2017 respondents was collected from defense-related national institutions in Pakistan. Empirical findings based on structural equation modeling validated a significant positive SCRM è Organizational Performance relationship. According to the findings, supply chain risk management is strongly connected to operational efficiency and flexibility. Additionally, the study also substantiates the mediating effects of operational performance (i.e., efficiency and flexibility), along with the significant moderation by supply chain integration in the relationship between risk management and operational efficiency. However, the results do not support the role of operational flexibility in mediating the relationship between SCRM and OP. Furthermore, the role of SCI as a moderator between SCRM è operational flexibility was not established. This research is the first to introduce an empirically validated framework of supply chain performance in the defense industry, besides conceptualizing the direct and indirect roles of SCRM, efficiency, flexibility, and integration. This study also navigates some of the critical issues and obstacles faced by the national defense industry and highlights a holistic model that facilitates a multistage supply chain decision-making.