The Effects of Risks in Agricultural Supply Chain Management on Business Performance: A Case Study in Vietnam

Abstract

Risks in the agricultural supply chain management can cause significant losses to the production and business activities of enterprises in the market. This study aims to examine the impact of risks in the agricultural supply chain management on the business performance of enterprises. Applying a quantitative research method through SEM linear structure model analysis, with survey data size including 625 samples of managers who have experience and knowledge of agricultural supply chain operations management in enterprises in Vietnam. Research results show that risks in the supply chain have both direct and indirect effects on business performance through intermediaries, which are trust and linkages in the agricultural supply chain management. Besides, research also shows that there is a negative impact from the trust of participants and linkages in the agricultural supply chain management on the business performance of enterprises. In addition, research has also demonstrated that links positively affect both trust and opportunistic behavior of the participants in the agricultural supply chain management. On that basis, the study has given several recommendations to improve business performance for enterprises. The findings of this study have shown the importance and impact of risks in the agricultural supply chain management in multiple dimensions and aspects of business performance.