INVESTIGATING AND EVALUATING THE INFLUENCE OF SUPPLY CHAIN STRUCTURE ON SUPPLY CHAIN RISK

Supply chains are exposed to disruptions resulting from internal or external factors that hinder the performance of one or more of their constituent entities. An exploratory study was conducted to determine whether supply chain structure (SCS) influences supply chain risk (SCR), in the context of small and medium enterprises (SMEs) in South Africa. Thematic content analysis was applied to the case data of four Gauteng-based manufacturing SMEs (SMMEs), and summarised in a literature-developed, conceptual structure-risk framework. Results indicate that SCS does influence SCR. Investment in facility infrastructure and supplier relationships appear to be the most influential features. SCS also affects the operational and financial risk of an enterprise. These risks drive the SMEs’ strategy and reputation, and consequently drive the corresponding risk dimensions (i.e., strategic and reputation risks). These findings are limited, and should not be generalised to all South African SMEs.