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.<br />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.<br />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 SCJ has a positive effect on SC performance. SC performance also play partial mediation between SC viability and marketing performance.<br />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).<br />Practical Implications The study shows firms that the traditional risk assessment methods are insufficient and will no longer be enough to overcome severe disruption. Instead, the study recommends firms work using anticipatory failure determination (AFD) and a red teaming approach to prepare for 'unknown unknown' events. Besides, the study brings a practical and holistic model that shows the relationship between SC viability and SC and marketing performance.<br />Originality/Value None of the studies so far in SC have tested the concepts of viability systems in SCM by adopting from disciplines such as ecological modeling, biological, and cybernetics using PLS-SEM. Consequently, it contributes to existing literature by showing new empirical evidence of a strong relationship between SC viability, SC performance, and marketing performance.