The Influence of Risk Management Practices on Operational Performance and Supply Chain Performance: A Moderation Effect of Inflation Rate

Purpose: Sustainable economic growth is a top priority for any country, and inflation is crucial in determining future economic circumstances. Few research exists regarding the impacts of risk management practices on performance outcomes in the supply chain with the mediating role of inflation rate. Hence, this study investigates the important role of risk management practices in the context of high inflation rate. Research design, data and methodology: The PLS-SEM model is applied to identify the effects of risk management practices on operational performance and supply chain performance. The author distributed online and offline surveys to administrators at various businesses. After applying the filtration criteria, 309 responses were retained for further data analysis. Results: This research demonstrates that risk management practice is critical and adds to supply chain performance success. Managers should enhance all risk management procedures to regulate and manage hazards in the supply chain. This allows managers to anticipate and identify potential threats with ease, particularly in high inflation rate situation. Conclusions: The outcomes of this study demonstrate how fully implemented risk management practices can improve operational performance and supply chain performance, as well as control the impact of inflation rate.