The Moderating Effect of Customer Relationship on Supply Chain Risk Management and Organization Performance in Logistics Sector of Pakistan

Abstract

The current study aims to determine the moderating effect of customer relationship on supply chain risk management and organizational performance, specifically for Pakistan’s logistics sector. The logistics sector is selected for the study as it has considerable significance in the country’s economy and also having substantial growth due to the China-Pakistan Economic Corridor (CPEC). This study is quantitative in nature and data collection is performed through a questionnaire based on several instruments (operation risk management, strategic risk management, perceived performance, customer relationship) from officials (administrative and management) of various public and private logistics companies involved in supply chain and customer relationships. A total of 227 responses are received out of 300, with 11 incomplete responses being eliminated. The hypotheses are formulated based on the literature and research theme. The hypotheses testing are performed using the Partial Least Squares Structural Equation Modeling (PLS-SEM) methodology. The findings suggest that strategic risk management and supply chain performance have a favorable relationship. The study also showed that there exists a negative association between customer relationship and performance. Conversely, the relationship between operational risk management and performance was not established in this study. The findings of this study offer inspiration for future research that can apply these findings on large sample of companies.