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

Jianhong Tao, Muhammad Aamir, Muhammad Shoaib, Nosheena Yasir and Muhammad Babar ()
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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

Sustainability, 2025, vol. 17, issue 6, 1-21

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.

Keywords: supply chain risk; organizational performance; supply chain integration; demand uncertainty; automotive industry (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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