Role of Supply Chain Risk Management on Performance of Private Organizations: A Case of MTN Rwanda

Abstract

The purpose of this study was to examine the role of supply chain risk management on performance of private organizations (2017-2022). Despite this, the performance of MTN Rwanda as a private company remains critical and ineffective due to inappropriate supply chain risk management through risk identification; risk measurement and assessment; risk mitigation; risk reporting and monitoring. In conducting this research, four objectives were focused on the role of supply chain risk identification on performance of MTN Rwanda, the role of supply chain risk measurement and assessment on performance of MTN Rwanda, the role of supply chain risk mitigation on performance of MTN Rwanda and lastly the role of supply chain risk reporting and monitoring on performance of MTN Rwanda. To achieve these objectives, literature was reviewed on the subject matter including definitions of key concepts, conceptual review, theoretical framework, conceptual framework and research gap analysis, additionally the study population was 300 employees of MTN Rwanda, and out of them a sample size of 171 respondents was purposively selected. Questionnaire, interview guide and documentation were used as tools of data collection. Furthermore, the data was analyzed by using descriptive statistics. Findings indicated that holding all the supply chain risk management on MNT Rwanda’s performance will be -.769 percent, a unit increase in the use of Supply chain risk identification would lead to increase in MTN Rwanda’s performance by 42.3%, a one percent increase in the use of supply chain risk measurement and assessment would lead to an increase MTN Rwanda’s performance by 23.1%,  a one percent increase in the use of supply chain risk mitigation would lead to an increase MTN Rwanda’s performance by 103.8%, and lastly a one percentage increase in the use of supply chain risk reporting and monitoring would lead to 3.8% increase of MTN Rwanda’s performance. Overall, the supply chain risk mitigation had the greatest effect on MNT Rwanda’s performance, followed by supply chain risk identification, supply chain risk measurement and assessment and lastly supply chain risk reporting and monitoring. At 5% level of significance and 95% level of confidence, supply chain risk mitigation at 1.038 level of significance; supply chain risk identification had a 0.423 level of significance, supply chain risk measurement and assessment had a 0.231 level of significance, while Supply chain risk reporting and monitoring had a 0.038 level of significance. All the variables were significant (p<0.05). The study concluded that implementing a global supply chain risk management strategy can help companies operate more efficiently, reduce costs, and improve customer service. Therefore, with reference to MTN Rwanda, the study concludes that there is a positive relationship between supply chain risk management and performance of private organizations. The researcher in line with the findings and objectives of the study made the following suggestion that MTN Rwanda should continuously develop supply chain risk management policies and frameworks to enable employees to identify, assess, address, control and evaluate risks faced by the company.

Key words: Supply chain, risk management, performance, private organization, MTN Rwanda.