IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i6p2462-d1609966.html
   My bibliography  Save this article

Bridging the Gap Between Supply Chain Risk and Organizational Performance Conditioning to Demand Uncertainty

Author

Listed:
  • Jianhong Tao

    (School of Economics and Management, Shaanxi University of Science and Technology, Xi’an 710021, China)

  • Muhammad Aamir

    (School of Economics and Management, Shaanxi University of Science and Technology, Xi’an 710021, China)

  • Muhammad Shoaib

    (School of Computer Science, Northwestern Polytechnical University, Xi’an 710021, China)

  • Nosheena Yasir

    (School of Management, Xijing University, Xi’an 710123, China)

  • Muhammad Babar

    (School of Economics and Management, Shaanxi University of Science and Technology, Xi’an 710021, China)

Abstract

This study aims to explore the impact of supply chain risk (SCR) on organizational performance (OP) within the Pakistani auto sector, focusing on the mediating role of supply chain integration (SCI) and the moderating effect of demand uncertainty. The research investigates how effectively managing SCR and integrating supply chain functions can enhance organizational resilience and performance, especially in the context of a volatile market environment. A quantitative research design was employed, with data collected through self-administered questionnaires distributed to 400 supply chain managers and decision-makers in the auto industry. A total of 320 completed questionnaires were returned, resulting in a response rate of 80%. The data were analyzed using Smart PLS to test the proposed hypotheses and examine the relationships between SCR, integration, demand uncertainty, and organizational performance. This study found that SCR negatively impacts organizational performance, while SCI mediates this relationship, enhancing performance outcomes. Additionally, demand uncertainty was found to moderate the relationship between SCR and integration, highlighting the importance of flexibility and adaptability in supply chain management. All hypotheses were supported, confirming the significant role of integration and uncertainty in managing risks effectively. This study contributes to the existing literature by providing empirical evidence from a developing economy, offering valuable insights for practitioners in the automotive industry. This study is a contribution to the supply chain management literature in that it provides empirical evidence regarding supply chain integration as a mediator and demand uncertainty as a moderator of the relationship between the supply chain risk and organizational performance.

Suggested Citation

  • Jianhong Tao & Muhammad Aamir & Muhammad Shoaib & Nosheena Yasir & Muhammad Babar, 2025. "Bridging the Gap Between Supply Chain Risk and Organizational Performance Conditioning to Demand Uncertainty," Sustainability, MDPI, vol. 17(6), pages 1-21, March.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:6:p:2462-:d:1609966
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/6/2462/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/6/2462/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Yongbo Sun & Hui Sun, 2021. "Green Innovation Strategy and Ambidextrous Green Innovation: The Mediating Effects of Green Supply Chain Integration," Sustainability, MDPI, vol. 13(9), pages 1-20, April.
    2. Fang, Teoh Ming & Ahmad, Noor Hazlina & Halim, Hasliza Abdul & Iqbal, Qaisar & Ramayah, T., 2024. "Pathway towards SME competitiveness: Digital capability and digital business model innovation," Technology in Society, Elsevier, vol. 79(C).
    3. Thabit Atobishi & Sahar Moh’d Abu Bakir & Saeed Nosratabadi, 2024. "How Do Digital Capabilities Affect Organizational Performance in the Public Sector? The Mediating Role of the Organizational Agility," Administrative Sciences, MDPI, vol. 14(2), pages 1-17, February.
    4. Egging-Bratseth, Ruud & Kauko, Hanne & Knudsen, Brage Rugstad & Bakke, Sara Angell & Ettayebi, Amina & Haufe, Ina Renate, 2021. "Seasonal storage and demand side management in district heating systems with demand uncertainty," Applied Energy, Elsevier, vol. 285(C).
    5. Yang, Jun & Su, Changqi, 2021. "Robust optimization of microgrid based on renewable distributed power generation and load demand uncertainty," Energy, Elsevier, vol. 223(C).
    6. Feng, Taiwen & Yang, Shan & Sheng, Hongyan, 2024. "Supply chain integration and novelty-centered business model design: An organizational learning perspective," European Management Journal, Elsevier, vol. 42(3), pages 414-424.
    7. Xiangling Nie & Gengxin Sun, 2022. "Cross-Border E-Commerce Logistics Transportation Alternative Selection: A Multiattribute Decision-Making Approach," Mathematical Problems in Engineering, Hindawi, vol. 2022, pages 1-7, March.
    8. Barbara B. Flynn & Xenophon Koufteros & Guanyi Lu, 2016. "On Theory in Supply Chain Uncertainty and its Implications for Supply Chain Integration," Journal of Supply Chain Management, Institute for Supply Management, vol. 52(3), pages 3-27, July.
    9. Abdul Waheed & Qingyu Zhang, 2022. "Effect of CSR and Ethical Practices on Sustainable Competitive Performance: A Case of Emerging Markets from Stakeholder Theory Perspective," Journal of Business Ethics, Springer, vol. 175(4), pages 837-855, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Li, Qiang & Zhou, Yongcheng & Wei, Fanchao & Li, Shuangxiu & Wang, Zhonghao & Li, Jiajia & Zhou, Guowen & Liu, Jinfu & Yan, Peigang & Yu, Daren, 2024. "Multi-time scale scheduling for virtual power plants: Integrating the flexibility of power generation and multi-user loads while considering the capacity degradation of energy storage systems," Applied Energy, Elsevier, vol. 362(C).
    2. Ben-Ammar, Oussama & Bettayeb, Belgacem & Dolgui, Alexandre, 2019. "Optimization of multi-period supply planning under stochastic lead times and a dynamic demand," International Journal of Production Economics, Elsevier, vol. 218(C), pages 106-117.
    3. Jessica L. Darby & David J. Ketchen & Brent D. Williams & Travis Tokar, 2020. "The Implications of Firm‐Specific Policy Risk, Policy Uncertainty, and Industry Factors for Inventory: A Resource Dependence Perspective," Journal of Supply Chain Management, Institute for Supply Management, vol. 56(4), pages 3-24, October.
    4. Dominik Oehlschläger & Andreas H. Glas & Michael Eßig, 2024. "How Digital Twins Impact Responsiveness: A Dynamic Fit Approach to Information Processing for High-Involvement Product Demand Management," Schmalenbach Journal of Business Research, Springer, vol. 76(4), pages 661-706, December.
    5. Sulman Shahzad & Muhammad Abbas Abbasi & Hassan Ali & Muhammad Iqbal & Rania Munir & Heybet Kilic, 2023. "Possibilities, Challenges, and Future Opportunities of Microgrids: A Review," Sustainability, MDPI, vol. 15(8), pages 1-28, April.
    6. Gao, Datong & Zhao, Bin & Kwan, Trevor Hocksun & Hao, Yong & Pei, Gang, 2022. "The spatial and temporal mismatch phenomenon in solar space heating applications: status and solutions," Applied Energy, Elsevier, vol. 321(C).
    7. Xingwei Li & Jiachi Dai & Jinrong He & Jingru Li & Yicheng Huang & Xiang Liu & Qiong Shen, 2022. "Mechanism of Enterprise Green Innovation Behavior Considering Coevolution Theory," IJERPH, MDPI, vol. 19(16), pages 1-19, August.
    8. Bilić Irena & Primorac Dinko & Trkulja Željka Marčinko, 2023. "Virtue Ethics, Managerial Profession and Personality Traits: The Extension of Mintzberg’s Managerial Traits," Business Systems Research, Sciendo, vol. 14(2), pages 145-157, December.
    9. M. Tina Dacin & Jeffrey S. Harrison & David Hess & Sheila Killian & Julia Roloff, 2022. "Business Versus Ethics? Thoughts on the Future of Business Ethics," Journal of Business Ethics, Springer, vol. 180(3), pages 863-877, October.
    10. Winkler, Lorenz & Kilic, Onur A. & Veldman, Jasper, 2022. "Collaboration in the offshore wind farm decommissioning supply chain," Renewable and Sustainable Energy Reviews, Elsevier, vol. 167(C).
    11. Jianfei Zhao & Anan Pongtornkulpanich & Wenjin Cheng, 2022. "The Impact of Board Size on Green Innovation in China’s Heavily Polluting Enterprises: The Mediating Role of Innovation Openness," Sustainability, MDPI, vol. 14(14), pages 1-20, July.
    12. Kirti Nayal & Rakesh D. Raut & Balkrishna E. Narkhede & Pragati Priyadarshinee & Gajanan B. Panchal & Vidyadhar V. Gedam, 2023. "Antecedents for blockchain technology-enabled sustainable agriculture supply chain," Annals of Operations Research, Springer, vol. 327(1), pages 293-337, August.
    13. Zaheer Alam & Yasir Bin Tariq, 2023. "Corporate Sustainability Performance Evaluation and Firm Financial Performance: Evidence from Pakistan," SAGE Open, , vol. 13(3), pages 21582440231, July.
    14. Buonomano, A. & Forzano, C. & Mongibello, L. & Palombo, A. & Russo, G., 2024. "Optimising low-temperature district heating networks: A simulation-based approach with experimental verification," Energy, Elsevier, vol. 304(C).
    15. Chand, Pushpendu & Thakkar, Jitesh J. & Ghosh, Kunal Kanti, 2020. "Analysis of supply chain sustainability with supply chain complexity, inter-relationship study using delphi and interpretive structural modeling for Indian mining and earthmoving machinery industry," Resources Policy, Elsevier, vol. 68(C).
    16. Mohammed Hossain & Yasean A. Tahat & Naser AbuGhazaleh, 2024. "Unlocking the Sustainable Workplace Equality Policy (SWEP): Evidence from an Emerging Country," Sustainability, MDPI, vol. 16(2), pages 1-22, January.
    17. Xiongyong Zhou & Madeleine Pullman & Zhiduan Xu, 2022. "The impact of food supply chain traceability on sustainability performance," Operations Management Research, Springer, vol. 15(1), pages 93-115, June.
    18. Christopher W. Craighead & David J. Ketchen Jr. & Matthew T. Jenkins & Mary C. Holcomb, 2017. "A Supply Chain Perspective on Strategic Foothold Moves in Emerging Markets," Journal of Supply Chain Management, Institute for Supply Management, vol. 53(4), pages 3-12, October.
    19. Wei Xu & Dong-Ping Song, 2022. "Integrated optimisation for production capacity, raw material ordering and production planning under time and quantity uncertainties based on two case studies," Operational Research, Springer, vol. 22(3), pages 2343-2371, July.
    20. He Zhou & Songzheng Zhao, 2024. "Green supply chain integration on firm’s green innovation: The moderating role of resource orchestration capability," Operations Management Research, Springer, vol. 17(4), pages 1380-1396, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:17:y:2025:i:6:p:2462-:d:1609966. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.