Supply Chain Risks and Organisational Performance among ISO 14001 Certified Manufacturing Sector

Abstract

This study aimed to investigate each dimension of supply chain risks on economic and environmental performance. This study has performed the conceptual framework of supply chain risks and organisational performance. The data were collected by distributing 30 questionnaires to manufacturing companies that achieved ISO 14001 in Malaysia. The reliability test revealed that all variables ranged from 0.806 to 0.920, and the item measures have sufficient level of reliability. The descriptive analysis revealed that environmental risk is the most frequent supply chain risks in ISO 14001 certified manufacturing company in Malaysia. Another finding showed that both economic and environmental performances, on average, were highly moderated compared to the past two years of performance. Based on the findings, the researchers and practitioners are raising knowledge about the overall ranking of each dimension in supply chain risks. The findings of this study can be beneficial for top-level management specifically for the top management in ISO 14001 certified manufacturing companies in Malaysia. They will be aware of how to mitigate the supply chain risks and how to protect the supply chain management. Future study can include the strategy or practices that can improve both economic and environmental performance by reducing the supply chain risks.