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Building Resilient Retail Supply Chains: The Role of Supply Chain Risk Management in Organizational Performance

DOI: 10.4236/ajibm.2026.167038, PP. 716-731

Keywords: Business Continuity Management, Retail Chain Stores, Supply Chain Resilience, Supply Chain Risk Management, Supply Chain Risk Management Strategies (SCRMS), Supply Chain Vulnerability, Organizational Performance

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Abstract:

Supply chains face numerous risks, including terrorism, political instability, corruption, climate variability, utility failures, and natural disasters. Such disruptions interrupt daily operations, lower revenue streams, reduce customer satisfaction, and undermine business credibility. Over the last two decades, supply chain risk management strategies (SCRMS) have become essential tools for ensuring seamless flow of goods, enhancing resilience, and sustaining competitiveness. By applying continuity management approaches, resilient organizations can recover more rapidly from disruptions and maintain stable performance. This study investigated the effect of SCRMS on the performance of retail chain stores in Kenya. Findings revealed that SCRMS had a statistically significant impact on performance. Mixed-effect modeling showed a strong fixed effect on the employee level (β = 0.618, Z = 17.030, p-value = 0.000) and a significant random effect at the entity level (ICC = 15.8%, LR = 67.13, p < 0.000). Regression analysis of secondary data confirmed the influence, with 85.7% of performance variation explained (R2 = 0.857, F = 83.99, β = 0.391, t = 9.160, p < 0.001). The study concludes that SCRMS are critical for boosting resilience, reducing disruption impacts, and ensuring profitability. Adoption of these strategies strengthens organizational agility and competitiveness, positioning retail chains to withstand the uncertainties of modern business environments.

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