TABLE OF CONTENTS

1 CHAPTER ONE : INTRODUCTION ............................................................................................ 1

1.1 INTRODUCTION ................................................................................................................... 1
1.2 BACKGROUND OF THE STUDY ........................................................................................ 1
1.2.1 SUPPLY CHAIN RISK MANAGEMENT PRACTICES .............................................. 2
1.2.2 ORGANIZATIONAL PERFORMANCE ....................................................................... 3
1.3 RESEARCH PROBLEM ........................................................................................................ 3
1.4 RESEARCH QUESTIONS ..................................................................................................... 4
1.4.1 Main Reseach Question ................................................................................................... 4
1.4.2 Specific Research Questions ........................................................................................... 4
1.5 RESEACH OBJECTIVES ...................................................................................................... 4
1.5.1 Main Research Objective ................................................................................................ 4
1.5.2 Specific Research Objectives .......................................................................................... 5
1.6 RESEARCH HYPOTHESES.................................................................................................. 5
1.7 SIGNIFICANCE OF THE STUDY ........................................................................................ 5
1.8 ORGANIZATION OF THE STUDY ..................................................................................... 6
2 CHAPTER TWO : LITERATURE REVIEW................................................................................. 7
2.1 INTRODUCTION ................................................................................................................... 7
2.2 CONCEPTUAL RIVIEW ....................................................................................................... 7
2.2.1 Supply Chain Risk Management (Concept one) ............................................................. 7
2.2.2 Organizatinal Performance (Concept two) .................................................................... 11
2.2.3 CONCEPTUAL FRAMEWORK .................................................................................. 12
2.3 THEORITICAL REVIEW .................................................................................................... 13
2.3.1 Agency Theory .............................................................................................................. 13
2.3.2 Stakeholder Theory ....................................................................................................... 13
2.3.3 New Institutional Economics Theory ............................................................................ 14
2.4 REVIEW OF EMPERICAL LITERATURE ........................................................................ 14
2.5 RESEARCH GAP AND CONTRIBUTIONS ...................................................................... 18
3 CHAPTER THREE: METHODOLOGY ...................................................................................... 19
3.1 RESEARCH DESIGN .......................................................................................................... 19
3.2 AREA OF THE STUDY ....................................................................................................... 19
3.2.1 Scope of The Study ....................................................................................................... 19

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 3.3 DATA OF THE STUDY ....................................................................................................... 20
3.3.1 Source and Nature of Data ............................................................................................ 20
3.3.2 Data Collection Instrument............................................................................................ 20
3.4 DATA ANALYSIS METHODS ........................................................................................... 20
3.5 ETHICAL CONSIDERATIONS .......................................................................................... 20
4 REFERENCES .............................................................................................................................. 21
5 APPENDIX ................................................................................................................................... 23

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 1 CHAPTER ONE : INTRODUCTION
1.1 INTRODUCTION
This chapter will include introduction to the topic under the study, it will therefore aim at
providing the necessary information to facilitate an easy understanding of what the study
attemps to solve. To achieve this, the chapter is divided into ; background of the study,
statement of the problem, objectives of the study, research questions, hypothesis, signicance
of the study and the scope of yhe study.

1.2 BACKGROUND OF THE STUDY

Risk management in the supply chain has been a key area of concern to organisations
universally because of several industry changes. The current global economic crisis reveals
the need for ensuring propre risk management practices within the organisations. Felea and
Albastroiu (2013) ague that risk is present in entirely all the departments of the organisation.
Howerver it was noted that supply chain management is still a new notion that most
prganisations, particularly the government agencies, have not embraced. A risk based
management control system allows managers to react promptly to opportunities and threats
(Berinato 2004). Institutional managers must be able to demonstrate the ability to deal with
frequent and abrupt changes that confront their activities across the global economy
(Bernstein 1996).

This study will be anchored on the following theories ; Agency theory, stakeholder theory and
new institutional economics theory. Supply chain risks significantly impact on many
organizations (Chopra and Sodhi, 2014). Hence, supply chai risk management should focus
on coordination or collaborations amongst the supply chain stakeholders to achieve good
performance within the organization.

Risk management is a management activity that becomes more important as companies

become more global and more competitive. The risk management process consists of a series
of steps that define context, define, analyze, assess, process, control, communicate, and
continuously improve decision making. By implementing risk, organizations can reduce
unexpected and costly emergencies and allocate resources more efficiently. It helps improve
communication and improve organizational performance by providing a brief summary of the
threats it may face (Pojasek, 2017).

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Organizations are hence seeing the value to adopt risk management strategies to be able to
overcome the turbulence in the market caused by variations in supply chains. This approach
can in turn enable the managers, risk analysts and stakeholders to focus on minimizing the
potential impact of threats (Lowe & Jones, 2004). The globalization of markets and
outsourcing has made many manufacturing companies select supply chain and logistics to
manage their operations (Van & Beulens, 2002). In as much as in a long time supply chain
management has been a major element of competitive strategy to enhance organizational
performance among many firms not just manufacturing, supply chain performance and risks
pertaining to disruptions among agricultural companies has not received adequate attention
from researchers or practitioners today (Wegner & Bode, 2006).

1.2.1 SUPPLY CHAIN RISK MANAGEMENT PRACTICES

As earlier mentioned, supply chain risk management (SCRM) is concerned with the
management of risks in the supply chain (Brindley, 2004). Therefore, SCRM is regarded as a
strategic management function in the prganization since it infliences organizational
performance (Tang, 2006). Areas of concernnin the management of risks in the supply chain
include business environment, customers, products/services and suppliers.

The basic risks arising from selected uncertainty within internal and external sources are ;
available capacity, informatin delays, custom regulations, competitor action, internal
organizations, price fluctuations, and supplier quality and manufacturing yield (Cucchiella &
Gastaldi, 2006). An organization’s supply chain involves activities which facilitate the
movement of information and materials to the final customer.

Ju (2005) also contends that supply chain susceptibility has the propensity of risk sources and
drivers which outweigh risk-mitigating strategies, hence threatening its objective to serve the
customer effectively. Consequently, supply chain risk management practice aims at
identifying risks, evaluating and controlling risks and implementing necessary measures to
manage them (Narasimhan and Talluri 2009). According to the Institute of Risk Management
(2007), risk management involves the identifying, evaluation and implementation of strategies
to manage those potential risks. It is believed that businesses that have identified their risks
are well positioned to efficiently and effectively manage them.

SCMR literature has identified some major SCRM practices adopted by various organizations
tp mitigate supply chain risks. These include : risk management policy, computerized supply
chain management system, establishment of supply chain risk management committee and

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enhanced supplier relationship management (supplier appraisal) (Chemoiwo and Karanja
2016 ; Partida 2015 ; Cherono and Joma 2014 ; Yatim 2010).

1.2.2 ORGANIZATIONAL PERFORMANCE

Organizational performance is a concept that cuts across all the departments within an entity,
including the supply chain management. The individual performance of the various
departments, such as finance, human resource, marketing and the supply chain, in the
organization works collectively in enhancing the overall performance of the organization.
Furthermore, it is believe that government and non-profit making organizations also benefit
from performance measurement (Van Der stede, Chow and Lin, 2006).

According to Tomazvic (2015), most government organizations endeavour to succeed by

offering more timely and effecient operations with high quality services and better human
resource management tools while reducing costs and improving stakeholder relationship.
Therefore, organizations’ performance measures model should include service delivery,
project implementation, value for money and employee satisfaction as its main variables.

1.3 RESEARCH PROBLEM

Risk is inherent in every economic activity and every organization has to manage it according
to its size and nature of operation because without risk management no organization can
survive in the long run. This is because businesses today are faced with far greater challenges
than before due to the fact that economical, technological and legal interdependence are
becoming more prevalent and pronounced. It would be assumed that risk management and
internal control systems will vary from organization to organization based on their size or
industry sector. It is therefore logical to assume that every business organization has put in
place a strong risk management structure and internal control systems to help achieve its
goals. These are fundamental to the successful operation and day-to-day running of a business
and assist a company in achieving its objectives .By managing risk on the level of the supply
chain we gain insight of all potential threats to all organizations involved in the chain as well
as to the supply chain itself, especially to the logistics resources: flow of goods, services and
information; logistics infrastructure and suprastructure; and people.

Different firms have different supply chain but what is similar in most organizations supply
chain is the risk involved in achieving the desired organizations supply chain. As
globalization increases and competition amongst different industries, so does the supply chain
become more complex and largely affecting overall performance of an organization. A supply

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chain risk due to foreseen and unforeseen events adversely affects the performance of any
organization. The risk of not meeting material requirements for production in any company
will largely affect the customer order fulfillment which will lead to reduced sales thus
affecting the organization profits.

Despite the huge impact supply chain risk have on organization bottom line profits, many
organizations still don’t have a supply chain risk management program where they identify
the potential risk within their supply chains and come up with contingency plans and
mitigations for the supply chain risks that may affect the organization performance. There is
need therefore for organization to clearly identify the risks involved in the supply chains and
all the uncertainties in delivering value to the customers and supply chain managers should
come up with robust mitigation strategies to increase supply chain efficiencies and
effectiveness. The researcher sought to investigate this scenario in logistics companies in
Douala.

1.4 RESEARCH QUESTIONS

There are several questions that have been develop regarding the problem statement, where
we have the main the specific questions occured as follows :

1.4.1 Main Reseach Question

 What is the effect of supply chain risk management on the performance of logistics
companies ?

1.4.2 Specific Research Questions

 What is the effect of risk identification on the performance of logistics companies ?
 What is the effect of risk analysis on the performance of logistics companies ?
 What can be the effect of risk assessment on the performance of logistics companies ?
 What is the effect of risk mitigation on the performance of logistics companies ?
 What is the effect of risk monitoring on the performance of logistics companies ?

1.5 RESEACH OBJECTIVES

We have developed several objectives or this research project is aim to have the following
objectives :

1.5.1 Main Research Objective

 The main objective is to examin the effect of supply chain risk management on the
performance of logistics companies

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1.5.2 Specific Research Objectives
 To find out if risk identification has an effect on the performance of logistics
companies.
 To investigate the effect of risk analysis on the performance of logistics companies.
 To examin the relationship that exist between risk assessment and the performance of
logistics companies.
 To determine effect of risk mitigation on the performance of logistics companies.
 To establish the effect risk monitoring on the performance of losgistics companies.

1.6 RESEARCH HYPOTHESES

According to some researchers, supply chain risk has negative impact on logistics
performance (Simangunsong et al., 2012; Sanchez-Rodrigues et al., 2010). Whereas, some
other studies like Saminian-Darash and Rabinow (2015) concluded that SCR may enhance the
performance due to its positive effect in future. On the other hand, Merschmann and
Thonemann (2011) argued that there is no relation between performance and risk. Moreover,
the previous studies explored the firm performance in only logistics services organization
(Wang, 2018) or manufacturing sector organizations (Shou et al., 2018). This study tries to
explore this relationship in private logistics companies. The hypotheses are as follow :-

 H1 : Risk identification have a positive effect on the performance of logistics

companies.
 H2 : Risk analysis have a positive effect on the performance of logistics companies.
 H3 : Risk assessment have a positive effect on the performance of logistics
companies.
 H4 : Risk mitigation have a positive effect on the performance of logistics companies.
 H5 : Risk monitoring have a positive effect on the performance of logistics
companies.

1.7 SIGNIFICANCE OF THE STUDY

The findings from our research will be beneficial to the various stakeholders.

i. To the company

The study is significant to a company from different aspects firstly it focuses on the risk
management and its impact on the company performance and then it provides how board
ownership works to modify this relationship. The study highlights the role governing in risk

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management and hence leading towards the firm performance. This study is important for the
stock holders to make investment decision based on the risk characteristics of the company
and the role of board’s decision making power in the above said relationship.

ii. Other researchers

The study will be of significance to other researcher by assisting them to have a better
understanding of the subject under the study for relevant resources in the future. This can be
done through identification of gaps in knowledge and offer recommendations for further
studies. In this study, it is assumed that by studying practices of risk management, it will help
practitioners as well as the researchers to understand in a better way the extent and actions
related with risk management and also it will enable the researchers to study the risk
management consequences.

1.8 ORGANIZATION OF THE STUDY

This study is organized under five chapters. The study starts with chapter one which is the
introduction and the main areas covered under are the background of the study, statement of
the problem, research questions, objectives and hypotheses and also the significance of the
study. Chapter two is the literature review where we will see the the theoritical, emperical and
conceptual framwork. Chapter three is the research methodology and it captures the methods
that were adopted for gathering and and analyzing data. Chapter four is the data analysis and
interpretation section. And chapter five also highlights the summary of the data collected,
conclusion and recommendation.

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 2 CHAPTER TWO : LITERATURE REVIEW
2.1 INTRODUCTION
This chapter focusses on review of previous studies that have been done by other researchers
on supply chain risk management and performance. It provides conceptual framework,
theoritical review and review of emperical literature.

2.2 CONCEPTUAL RIVIEW

Conceptual review is an analytical tool with several variations and context. It is used to make
conceptual distinction and organize ideas (Njapon, 2022).

2.2.1 Supply Chain Risk Management (Concept one)

This is a process of handling risks either by proactibely mitigating them or by reactively
responding to them (Chopra and Sodhi, 2004). According to Brindley (2004), « Supply chain
risk management is the management of supply chain risks through coordination or
collaboration among the supply chain partners so as to ensure profitability and continuity ».

SCRM is regarded as a key management function in organizations since it inluences

organizational performance (Tang, 2006). In consideration of certainty that not all the
environmental factors that affect an organization can be managed, it will be necessory for an
organization to understand the prevailing informations on the basis of which probabilities
present is formed in more or less imperfect way.

Cousins, (2004) identify financial losses, product quality reduction, loss of goodwill amongst
supply chain stakeholders and damages to properties as some of the consequences of
ineffective management of risks. Mitchell (1995) points that collaboration with suppliers,
building of partnerships, strategic alliances and supplier development and appraisal help in the
reduction of risks.

2.2.1.1 Supply Chain Risk management Process / Practices

The risk managemnt process is a framework for the actions that need to be taken in to
consideration. There are five (05) basic steps that are taken to manage risk, these steps are
referred to as the risk management process. It begins with identifying risk, goes on to analyze
risks, then the risk is prioritized, a solution is implemennted, and finally, the risk is monitored.
Together these 5 risk management process steps combine to deliver a simple and effective
risk management process.

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Step 1 : Identify the risk. The initial step in the risk management process is to identify the
risks that the business is exposed to in its operating environment. There are many differents
types of risks :

• Legal risks

• Environmental risks

• Market risks

• Regulatory risks etc.

It is important to identify as many of these risk factors as possible. In a manual environment,

these risks are noted down manually. If the organization has a risk management solution
employed all this information is inserted directly into the system.

The advantage of this approach is that these risks are now visible to every stekeholder in the
organization with access to the system. Instead of this vital information being locked away in
a report which has to be requested via email, anyone who wants to see which risks have been
identified can access the information in the risk management system.

Step 2 : Analyze the risk. Once a risk has been identified it needs to be analyzed. The scope
of the risk must be determined. It is also important to understand the link between the risk and
different factors within the oeganization. To determine the severity and seriousness of the risk
it is necessary to see how many business functions the risk affects. There are risks that can
bring the whole business to a standstill if actualized, while there are risks that will only be
minor inconveniences in the analysis.

In a manual risk management environment, this analysis must be done manually. When a risk
management solution is implemented one of the most important basic steps is to map risks to
different documents, policies, proedures, and business processes. This means that the system
wil already have a mappped risk management framework that will evaluate risks and let you
know the far-reaching effects of each risk.

Step 3 : Evaluate the risk or risk assessment. Risks need to be ranked and prioritized. Most
risk management solutions have different categories of risks, depending on the severity of the
risk. A risk that may cause some inconvenience is rated lowly, risks that can result in
catastrophic loss are rated the highest. It is important to rank risks because it allows the
organization to gain a holistic view of the risk exposure of the whole organization. The

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business may be vulnerable to several low-level risks, but it may not require upper
management intervention. On the other hand, just one of the highest-rated risks is enough to
require immediate intervention.

There are two types of risk assessments : Qualitative risk assessment and Quantitative risk
assessment.

• Qualitative risk assessment : Risk assesssment are inerently qualitative – while we

can derive metrics from the risks, most risks are not quantifiable. For instance, the risk
of climate change that many businesses are now focusing on cannot be quantified as a
whole, only different aspects of it can be quantified. There needs to be a way to
perform qualitative risk assessments while still ensuring objectivity and
standardization in the assessments throughout the enterprise

• Quantitative risk assessment : Finance related risks are best assessed through
quantitative risk assessments. Such risk assessments are so common in the financial
sector because the sector primarily deals in numbers – whether that number is the
money, the metrics, the interest rates, or any other data point that is critical for risk
assessments in the financial sector. Quantitaive risk assessments are easier to automate
than qualitative considered more objective.

Step 4 : Treat the risk. Every risk needs to be eliminated or contained as much as possible.
This is done by connecting with the experts of the field to which the risk belongs. In a manual
environment, this entails contacting each and every stakeholder and then setting up meetings
so everyone can talk and discuss the issues. The problem is that the discussion is broken into
many different email threads, across different documents and spreadsheets, and many
different phone calls.

In a risk management solution, all the relevant stakeholders can be sent notifications from
within the system. The discussion regarding the risk and its possible solution can take place
from within the system. Upper management can also keep a close eye on the solutions being
suggested and the progress being made within the system. Instead of everyone cantacting each
other to get updates, everyone can get updates directly from within the risk management
solution.

Step 5 : Monitor and review the risk. Not all risks can be eliminated – some risks are
always present. Market risks and environmental risks are just two examples of risks that

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always need to be monitored. Under manual systems monitoring happens through diligent
employees. These professionals must make sure that they keep a close watch on all risk
factors. Under a digital environment, the risk management system monitors the entire risk
framework of the organization. If any factor or risk changes, it is immediately visible to
everyone. Computers are also much better at continuously monitoring risks than people.
Monitoring risks also allows your business to ensure continuity.

2.2.1.2 Supply Chain Risk Types

1. Financial risks

These risks can range from an unexpected or unfavorable change in exchange rates all the
way to a supplier’s bankruptcy.

Some examples of financial risks include budget overruns, finding the limitation, constructive
changes, and missed milestones requiring additional funding. Financial risks also encompass
unexpected cost overruns that may be linked to other risk factors such as changes in the scope
of work required to successfully complete the activity.

2. Scope of schedule risk

Largely a result of poor project definition or a poorly worded statement of work, these are
primary risks that threaten the timeline, but as noted previously, they can also have cost
implications.

Schedule changes are often the result of a natural disaster such as hurricanes, fire, or flood, or
as a result of noncompliance issues generated by the supplier. Scope risk can occur as a result
of changes that are required when the initial statement of work (SOW) becomes unworkable
or due to technological changes generated by the market.

3. Legal risks

Legal and contractual risks are often related to disputes or different interpretations of
contractual obligations, or from not meeting the requirement included in the terms and
conditions. Use or misuse of intellectual property can also be considered as a legal risk,
especially when patent infringement is a possibility. We can also include in this category
violation of laws, as well as civil lawsuits.

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 4. Environmental risk

In the sourcing process, it is critical to evaluate the risk to the environment created by your
supplier or contractor. Environmental risk includes the organization’s negative impact on
water, air, and soil as a result of discharges, emissions, and other forms of waste.

5. Sociopolitical risk

When the regulatory environment changes in response to a new government or to increasing

awareness of inequitable social conditions, many existing institutions experience difficulty in
adapting. Sourcing efforts, especially those in low-cost countries, must consider the impact of
these changes on the culture and business operations within that environment. Stability comes
with a price.

6. Project organization risk

These are generally a result of not having the right people or equipment in the right place at
the right time. You might also consider this as a planning risk.

7. Human behavior risk

Not surprisingly, human behavior risks are the most difficult to assess.

Sometimes the project or activity may be put in danger due to an illness or injury or due to the
departure of key personnel. Sometimes, it may be the result of poor judgment or bad
decisions.

2.2.2 Organizatinal Performance (Concept two)

Organization’s performance is a multidisciplinary which is majorly influenced by many
variables and theories (Kisia, 2017). At the strategic level the organization performance is
based on organizational theory, systems theory and contingency theory.

Organizational theory focuses on the entire organization and its structure (Jones, 1995). The
dominant management oaradigm is the prevailing way of perceiving, thincking and doing
things based on contingency management ( Wooton, 1977). Contingency theory of
management involves situationa analysis and actions which integrates diverse forms of
knowledge within the organization into effective strategies of management (Tosi and Carroll,
1976).

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System theory opposes reductionism and promotes holism (Von Bertalanffy, 1973). It focuses
on the relationship between the part which connects them into a whole (Flood and Jackson,
1995). Therefore, systems theory of organizational performance consider organizations and
department within them as open systems which freely interact with each others and the
environment.

Organization performance madels have been growing rapidly in the current dynamism
(Tomazevic, Tekavcic and Peljhan, 2015). Furthermore, it is believed that organizations such
as governmental and non-profit making organizations must focus more on their performance
by eliminating and managing risks well (Van Der Stede, Chow and Lin, 2006).

According to Tomazevic (2015), most government organizations strive to succeed in

satisfying customers by offering timely and efficient operations with high quality services,
improving employee satisfaction and enhanced relationship with stakeholders. Performance
measures model should include service delivery, project implementation review, value for
money and employee satisfaction as its main variables.

2.2.3 CONCEPTUAL FRAMEWORK

A conceptual framwork is depicted in figure 1 in which it is hypothesized that supply chain
risk management has no significant effect on the performance of logistics companies in
Douala. It is conceptualized that supply chain risk practices can be operationally defined as
risk identification, analysis, assessment, mitigation and monitoring.

INDEPENDENT VARIABLES (5) INDEPENDENT VARIABLE

SUPLLY CHAIN RISK MANAGEMENT

 RISK IDENTIFICATION
 RISK ANALYSIS
 RISK ASSESSMENT ORGANISATIONAL
 RISK MITIGATION PERFORMANCE
 RISK MONITORING

Figure 1 : Conceptual Framework of the effect of supply chain risk management on the
performance of logistics companies.

Source : researcher

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2.3 THEORITICAL REVIEW
The study was anchored on agency theory, stakeholder theory and new institutional economic
theory.

2.3.1 Agency Theory

According to Ross and Mitnick (1973), who are the founder of the agency theory, agency
relationship arises between two or more parties when one is designated as « the agent » and
acts for or on behalf of another party who is designated as the « principal ».

Eisenhardt (1989), argued that literature describes the risk sharing problem as one that arises
when cooperating parties have different attitudes towards risk. He noted that agency theory
broadens the risk sharing literature to include the so called agency problem that occurs when
cooperating parties have different goals and divisions of labour. The theory spreads the
organizational management to include ownership and control by shareholders and control by
management. Moreover, under corporate risk management, it is believed taht agency issues
have influence on managerial attitudes toward managing risks (Smith and Stulz 1985). This
theory explains the disparity of interest between shareholders, management and debt holders
because of different levels of their earnings.

State officers are agents of the government and their actions or decisions can result to the
organization taking too much risk or engage of negative net value hence agency theory
implies that defined hedging policies against risks can have great influence on organizational
value ( Fite and Pfeiderer, 1995). Stakeholders theory provides a new insight into possible
rationale for risk management in order to improve organizational performance by being
sensitive to expected costs of financial distress and loss of good will caused by poor risk
management practices from the viewpoint of stakeholders such as the Government, customers
and the organization it self (Judge, 2006).

2.3.2 Stakeholder Theory

The main proponent of the stakeholder theory, Freeman (1984), describes what managers in
respect to relationships with other stakeholders do and what the outcome that arises out of the
adherence to stakeholder’s management principles.

Bebbington. J. et al (2008), « contends that reputation of the organization is at risk in every

day interaction between the organizations and their stakeholders, with risks having many
sources such as strategic, operational, compliance and financial hence must be managed in
order to improve organizational performance ». Stakeholder theory focuses on the balance of

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interests of the stakeholders in the organization. In same organizations, especially within the
service industries, the value of the organization depends largely on the consumer trust and
loyalty. Hence, corporate risk management practices may lead to a decrease in the expected
costs and increase an organization’s performance (Klimczak,2005).

Stakeholder theory is therefore relevant to this study because the actions of the management
of supply chain risks of logistics comapnies and how they manage their relationship with
various stakeholders inform the strategies of managing the risks that arise within the
organization.

2.3.3 New Institutional Economics Theory

According to the founder of New Institutional Economics Theory, Williamson O.E, (2000),
« institutions are very complex and much of the past organizational theories lack scientific
ambitions to deal with the complexities and risks in the organizations ». He noted that there
should be many instructive lenses for studying complex institutions; hence pluralism is what
holds promise for overcoming institution issues such as risk management.

New instituational theory states the performance of the organization is caged by the risk
management practices it adopts. (Willamson, 1998). Further, the theory links security with
purchase of property hence suppports this notion that risk management can be useful in
contracts in the supply chain.

Private organizations do not often give top management the opportunity to make corporate
investment and financing decisions. Smith and Watts (1992). « Contends that regulation is an
important factor an organization should consider while making corporate financing policies ».
New Institutional Economics is therefore relevant in this study since it recognizes the
complexities and risks within the organization and which affects its performance.

2.4 REVIEW OF EMPERICAL LITERATURE

Bob Evans Ochieng (2019) study titled : « Effect of Supply Chain Risk Management
Practices on Performance of Manufacturing Firms in Kenya ». The purpose of this study
was to establish the effect of supply chain risk management practices on performance of
manufacturing firms in Kenya. The study specifically looked at the effect of risk identification
and hedging on performance of manufacturing firms in Kenya. The target population included
494 large manufacturing firms licensed under the Kenya Association of Manufacturers. A
sample size of 138 firms was determined through a formula and sampled using stratification.
The study used primary data sources collected through structured questionnaires. The

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collected data was analysed using descriptive and inferential statistics to reveal that supply
chain risk management practices (risk identification and hedging) positively and significantly
affected performance manufacturing firms in Kenya. The study recommended the need for
manufacturing firms to put in place better risk identification practices such as continuously
conducting pre-screening of suppliers’ capacity, inventory forecasting and also conducting
periodic procurement analysis so as to detect and hedge against risk thus improving their
performance. There is also a need to ensure that there exist between hedging practices such as
increasing buffer stock, reducing order cycle times and sharing supply chain costs with
partners through outsourcing in order to improve their performance.

Caroline Wanjiru Munyuko (2015) study title : « Effects of Supply Chain Risk
Management on Organization Performance: Case of Andy Forwarders Services
Limited ». The purpose of the research was to determine the effects of Supply chain risk
management on organization performance. Previous studies have focused on risk management
within the general context of an organization but little attention has been focused on how
supply chain risk affect organization performance in terms of its bottom line profits and
overall organization objectives. Particular attention was paid to the effects of supply chain
risk management variables to the performance of the organization. Three main supply chain
risk management variables were identified, namely, supply chain risk identification, supply
chain risk sources and supply chain risk mitigation.

The population for the research included staff at Andy forwarders and logistics services. The
research methodology included both primary and secondary data, both interviews and
questionnaires were used, questionnaires being the main instrument of data collection. The
advantage of a questionnaire over other instruments include the fact that questionnaires are:
Practical and large amounts of information can be collected from a large number of people in
a short period of time and in a relatively cost effective way, they can be carried out by the
researcher or by any number of people with limited affect to its validity and reliability and the
results of the questionnaires can be quickly and easily quantified by either a researcher or
through the use of a software package The researcher used questionnaire Tables, bar graphs
and pie charts were used during the analysis using the statistical of science package software
in order to come up with accurate analysis and presented in tabular and graphical methods.
The results obtained showed that there was a direct link between supply chain risk
management and organization performance. It was concluded that supply chain risks affect
organization performance in the event they materialize and therefore there was need for

15
organization to identify risk exposure, analyze the risk exposure and have in place mitigation
plans for the risk identified within their supply chain.

Gyula Laszlo FLORIAN and Alexandru CONSTANGIOARA (2014) study title : « The
Impact of Risks in Supply Chain on Organizational Performances: Evidence from
Romania ». The proposed empirical research uses a national sample of 64 Romanian
companies from various industries to document the relationship between organizational
performances and risks in the context of Romanian supply chains. Empirical findings show
that a supply chain risk management strategy successfully mitigates the negative
consequences of risks. Our research underlines the changes necessary to maximize the
benefits of supply chain integration. To extend the knowledge in this area our research is
interdisciplinary, using a structural approach to model the determinants of organizational
performances in supply chains and to measure the complex relationships among risks in
supply chains and different facets of organizational performances in the context of Romanian
supply chains.

Muhammad Saeed Shahbaz et al. (2019) study titled : « The impact of supply chain risks
on supply chain performance: Empirical evidence from the manufacturing of
Malaysia ». Nowadays, competition has shifted from organization to industry level so any
disruption can not only disturb organization but also affect the whole industry. Although
Malaysia is known from palm oil and rubber manufacturing sector has the highest growth rate
(7.1%) and the second contributor to GDP and employer. After extensive literature view, it
has found that various disruptions have been reported that not only disrupt Malaysian
manufacturing but also a global business but there is no study available the empirically assess
these risks. This is an empirical investigation and data was collected through a questionnaire
distributed by systemic probability sampling to listed Manufacturing organizations listed in
the Federation of Manufacturing Malaysia by emails. Final and purified data was analyzed
through Structural Equational Modeling through Smart PLS. Total three types of risks were
assessed namely logistic side risks, collaboration side risks, and finance side risks. It has been
found that although all three types have a negative impact on supply chain performance only
logistic side risks is effecting significantly. This study will help managers to understand how
supply chain risks are affecting and what type of risks they should be more aware.
Furthermore, various approaches can be proposed for mitigation but there is also a need to
verify these approaches for Malaysia.

16
Mohamed Atig Ahmed (2020) Study Titled : « Supply Chain Risk Management And The
Role Of Organisation Culture : Evidence From Libyan Ports ». Seaports are one of the
main facilitators of economic growth as they create trade and jobsglobally. Particularly in
African countries, where they are considered as focal points for oil and gas exportation with
both neighbouring and developed countries. As a result, Supply Chain Risk Management or
SCRM has become increasingly significant. This research focuses on the context of North
African countries, specifically Libya, which is currently suffering from a leadership crisis,
violent and political conflict, armed groups and a risky geographical location. All of which
relate to and help to build connections within the context of national and organisational
culture and the impact of SCRMP on Libyan Ports (LPs). By understanding these
connections, these ports could then improve their working conditions, whilst becoming aware
of internal and external factors and their impact on survival. This research aims to develop
and aid understanding of the impact of SCRM on LPs and how these risk management
practices are linked with both national and organisational culture. The focus will be on both
internal and external factors, which may influence either positively or negatively. In order to
comprehensively understand the topic, this research considers; experience, background,
opinions, suggestions, situations, context, culture, and the environment. A pilot study will be
conducted with 32 supervisors from four major Libyan ports; Misurata, Khoms, Tripoli and
Benghazi, being interviewed. With the main findings highlighting the negative influence of
factors such as high-power distance, authority, uncertainty avoidance, political involvement,
centralisation, nepotism and low levels of longterm decision making on the SCRMP
operations of Libyan Ports (LPs). Ultimately, a conceptual framework will be developed to
aid understanding of how the top management of ports in developing countries could be
improved using SCRMP.

Sabeen Hussain Bhatti ana Asif Ali Bhatti (2019) study titled : « Impact of Supply
Chain Risk Management on Organizational Performance: Moderating Role of Supply
Chain Integration ». This study helps to investigate the relationship between supply chain
risk management (SCRM) and organizational performance. The study also examined the
moderating role of supply chain integration (SCI) between SCRM and operational
performance. The research design is quantitative. The methodology adopted in this study is
survey – based methodology. It is used on the data collected from public sector organizations
of Pakistan. Tool used for data collection is questionnaire. The results of the study indicate
that there is a positive relationship of the SCRM with operational efficiency and operational

17
flexibility. And also, it also has direct and indirect positive impact on the organizational
performance. Moreover, supply chain integration (SCI) moderates positively the impact of
SCRM on OE and OF. It contributes to the existing studies about the SCRM and SCI by
explaining and analysing some more aspects of SCRM. It also helps to improve managerial
insight for risk management and supply chain integration as well.

2.5 RESEARCH GAP AND CONTRIBUTIONS

A research gap is problem that has not been addressed or answered in previous studies or
areas which lack crucial information. This thematic is one of those sphere in research that has
been highly contested and is plagued with varied thoughts. Some research has been done in
the area but has mostly been looked at from different angles. However, to the best of the
research knowledge, very little study has been carried about supply chain risk management in
Cameroon. Also, the authors who researched on the perceptions of the effect of supply chain
risk management on organozational performance look at it in a very small range. This study
fills that gab by investigating the organizations perceptions of the effectiveness of supply
chain risk activities. This study will contribute to knowledge by filing this gap, thereby
updtingan expanding the existing literature.

18
 3 CHAPTER THREE: METHODOLOGY
INTRODUCTION

Research methodology is the specific procedures or techniques used to identify, select,

process, and analyze informations about a topic. In a research paper, the methodology section
allows the reader to critically evaluate a study’s overall validity and reliability. The
methodology section answers two main questions : How was the data collected or generated ?
How was it analyzed ?. For this study, I will make use of quantitative method to attain a
greater knowledge for the understanding of the thesis.

3.1 RESEARCH DESIGN

The research design for this study will be a quantitative survey method. In quantitative
survey method research, participant answer questions administer through interviews or
questions administer through interview or questionnaires. After participant answer the
questions, researchers describes the respose given. In the research disign, cooper et al. (2006)
; veal (2005) suggested there are main types of research design. They are the causal research
design and the correlation research design. The correlation research design deals with the
evaluation of relationship among the variables of the study is theory. Whereas, the causal
research design deals with the cause and effect association among the variables of the study
(kumar & Phrommathed, 2005). The correlation research design is used in order to confirm
the theory the study is presenting (Koul, 2009). Thus, the correlation research design is
applied since the study assesses the association between the contructs of the study.

3.2 AREA OF THE STUDY

This is a study on the effect of supply chain risk management on the performance of a
logistics company. For the purpose of this research, anything that is affected in the cause of
carrying out this research is automatically a member of the area of the study. But for time and
distance, the researcher decided to limit the scope on logistics organizations in Douala.

3.2.1 Scope of The Study

The scope of this study is divided into three areas which are Thematic, space and time.

I. Thematic : The study will limit itself to the effect of supply chain risk management or the
ways in which risk management affect the performance of logistics companies.

II. Space : Space refers to the geographical area were the study is been carried out. The study
will be conduct in Douala the littoral region in wouri division of Cameroon.

19
III. Time : The duration of the study will be carried out from the 29th of May 2023 to the
29th of Juin 2023.

3.3 DATA OF THE STUDY

3.3.1 Source and Nature of Data
For the acheivement of this study, the source and nature of data will be primary source of
data.

3.3.2 Data Collection Instrument

For the purpose of this research questionaires will be use for the collection of datas.

Questionaires are another way of information gathering where the potential users of the
system are given questionaires to be filled up and returned to the researcher.

Questionaires are useful when the researcher needs to gather informations from a large
number of people since it is not possible to interview each individual. Also if the time is very
short, in that case questionaires are useful. If the researcher guarantees the anonymity of the
respondentthen the respondent answers the questionaires very honestly and critivally. The
researcher should sensibly design and frame questionaires with clarity of its objective so as to
do.

Questionnaire will be designed to accommodate the sample of the population under study. It
has an open ended answers questions for respondent to agree or disagree. The open ended
answers result from to seek out individual opinions.

3.4 DATA ANALYSIS METHODS

The method of descriptive analysis will be use to justify the data which will be collected from
the questionnaires. Where the respondent will expresse in frequencies and percentages and
illustrated using tables and pie charts. We will equally use the regression analysis to test the
hypothesis. This will be done with the use of computer programs such as SPSS. Equally, the
data will be entered in the variable view of the SPSS program and then analysis will be done
in de Data view. Conclusion will be drawn from observations made. Statistical package for
social sciences (SPSS Version 20), will be use in the analysis of data.

3.5 ETHICAL CONSIDERATIONS

The study strived to avoid any form of harm to the futur respondents by observing the ethical
rules. This is in line with Mugenda (2003) who stated that researchers should avoid physical
or psychological harm to the participants. The information obtained from the respondents in

20
the process of the whole research will be keep confidential by so doing respecting the
engagement that will be state at the beginning of the questionnaire.

4 REFERENCES
Bob Evans O., (2019), Effect of Supply Chain Risk Management Practices on Performance of
Manufacturing Firms in Kenya, Journal of International Business, Innovation and Strategic
Management Volume 2, (Issue 1), 14 – 30.

Caroline Wanjiru M., (2015), Effects of Supply Chain Risk Management on Organization
Performance: Case of Andy Forwarders Services Limited in Nairobi, Kenya, International
Journal of Academic Research in Business and Social Sciences , Vol. 5, (No. 3), 102-125.

Kisia Edwin O., (2017), Supply Chain Risk Management Practices and the performance of
County Government of Kisumu, Kenya, The University of Nairobi.

Gyula Laszlo F. and Alexandru C., (2014), The Impact of Risks in Supply Chain on
Organizational Performances: Evidence from Romania.

Muhammad Saeed S. et al., (2019), The impact of supply chain risks on supply chain
performance: Empirical evidence from the manufacturing of Malaysia, International Journal
of Advanced and Applied Sciences, 6(9), Pages: 1-12.

MOHAMED ATIG A., (2022), Supply Chain Risk Management And The Role Of
Organisation Culture: Evidence From Libyan Ports, School of the Built Environment
University of Salford, Salford, UK.

Sabeen Hussain B. and Asif Ali B., (2019), Impact of Supply Chain Risk Management on
Organizational Performance: Moderating Role of Supply Chain Integration, 23rdCambridge
International Manufacturing Symposium University of Cambridge, 26–27.

Shafiq A., Muhammad A., Muhammad M., (2019), Effect Of Supply Chain Risk Management
On Organization Performance: A Case Study Of National Foods Manooabad Muridke District
Sheikhupura, International Journal of Social Sciences and Economic Review, Volume 01,
(Issue 01), PP: 1-7.

Braunscheidel, M. J., Suresh, N. C. (2009), The Organisational Antecedents of a Firm's

Supply Chain Agility for Risk Mitigation and Response, Journal of Operations Management,
27,119-140.

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Braunscheidel, M. J., Suresh, N. C., & Boisnier, A. D. (2010), Investigating the impact of
organisational culture on supply chain integration, Human Resource Management, 49(5), 883-
911. doi:10.1002/hrm.20381.

Brennen, B. 2013, Qualitative research methods for media studies, Routledge, New York;
London.

Brettel, M., Chomik, C., & Flatten, T. C. (2015). How organisational culture influences
innovativeness, proactiveness, and Risk‐Taking: Fostering entrepreneurial orientation in
SMEs. Journal of Small Business Management, 53(4), 868-885. doi:10.1111/jsbm.12108.

Breuer, W., Riesener, M., & Salzmann, A. J. (2014). Risk aversion vs. individualism: What
drives risk taking in household finance? The European Journal of Finance, 20(5), 446.
Brewerton, P. M., & Millward, L. J. (2001). Organisational research methods: A guide for
students and researchers. Sage.Ltd, GB.

Buchanan, D. A., & Badham, R. J. (2008). Power, politics, and organisational change:
Winning the turf game (2nd ed.). London;Los Angeles, Calif;: SAGE.

22
 5 APPENDIX
RESEARCH QUESTIONNAIRE

SECTION A : Demographic Informations

Please complete this questionnaire with appropriate number or tick where necessary

1. Gender of respondent
 Male [ ]
 Female [ ]
2. Age of respondent
 20 – 25 [ ]
 26 – 30 [ ]
 31 – 35 [ ]
 36 – 40 [ ]
 41 – 45 [ ]
 46 – 50 [ ]
a. Above 50 [ ]
3. Educational level
 A.Level [ ]
 H.N.D [ ]
 Bachelor degree [ ]
 Master degree [ ]
4. Working experience
 Lessthan one year [ ]
 2 – 5years [ ]
 6 – 9years [ ]
 10years and above [ ]
5. Matrimonial Status
 Single [ ]
 Married [ ]
 Divorce [ ]

SECTION B : Supply chain risk management literature

6. Do you know what supply chain risk management is ?

23
  Yes [ ]
 No [ ]
7. Do you know what organizational performance is ?
 Yes [ ]
 No [ ]
8. Do you know the process of supply chain risk management ?
 Yes [ ]
 No [ ]

SECTION C : The effect of supply chain risk management on organizational

performance

9. Does supply chain risk management influences organizational performance ?

 Strongly agree [ ]
 Agree [ ]
 Neutral [ ]
 Disagree [ ]
 Strongly disagree [ ]
10. Does risk identification influences organizational performance ?
 Strongly agree [ ]
 Agree [ ]
 Neutral [ ]
 Disagree [ ]
 Strongly disagree [ ]
11. Does risk analysis influences organizational performance ?
 Strongly agree [ ]
 Agree [ ]
 Neutral [ ]
 Disagree [ ]
 Strongly disagree [ ]
12. Does risk assessment influences organizational performance ?
 Strongly agree [ ]
 Agree [ ]
 Neutral [ ]

24
  Disagree [ ]
 Strongly disagree [ ]
13. Does risk mitigation influences organizational performance ?
 Strongly agree [ ]
 Agree [ ]
 Neutral [ ]
 Disagree [ ]
 Strongly disagree [ ]
14. Does risk monitoring influences organizational performance ?
 Strongly agree [ ]
 Agree [ ]
 Neutral [ ]
 Disagree [ ]
 Strongly disagree [ ]

25