Open AccessAnalysis of mitigation strategy for operational supply risk: An empirical study of halal food manufacturers in Malaysia
Author(s) -
Fadhlur Rahim Azmi,
Haslinda Musa,
Suhaiza Zailani,
Soo-Fen Fam
Publication year - 2021
Publication title -
uncertain supply chain management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.395
H-Index - 16
eISSN - 2291-6830
pISSN - 2291-6822
DOI - 10.5267/j.uscm.2021.8.009
Subject(s) - business , traceability , risk management , operational risk , supply chain , supply chain risk management , risk analysis (engineering) , supply chain management , operational risk management , operations management , marketing , finance , computer science , service management , economics , software engineering
This study aims empirically to analyze mitigation strategies for operational supply risk among halal food manufacturers in Malaysia. A survey of 369 halal food manufacturers is used to test a research model that proposes a relationship between operational supply risk and risk consequences as well as the mediating role of risk mitigation strategies. Structural equation modeling reveals that in the absence of a risk mitigation strategy (behavior-based management, buffer-based management, and traceability-based management), operational risk consequences are significantly influenced by operational supply risk. The analysis also showed the mitigation strategies reduce risk events by its interaction between operational supply risk and risk consequences. This study shows significant data about the management of halal food manufacturing. Due to the limitations of this survey, further study is necessary to analyze how other halal's sectors manage their supply chain risk management.