The Influence of Environmental Uncertainty on Supply Chain Performance; case study of the supply chain of SME manufacturing firms in Uganda

Victoria Brenda Nakku, Jennifer Kakooza Nabaweesi

Abstract


The purpose of the paper was to examine the effect of environmental uncertainty on supply chain performance. Supply chain performance in the supply chains of SME manufacturing firms is influenced by a number of factors. Demand uncertainty, supply uncertainty and technological uncertainty are some of the factors that influence supply chain performance in Uganda. The study was based on SME manufacturing firms and a sample of 300 firms was taken composed of supply chain managers for those firms. A survey questionnaire was used which was adopted from those used by previous scholars and was modified to suit the local setting. Out of the 300 firms, 219 questionnaires were got back a response rate of 73%.Findings showed that demand uncertainty predicted supply chain performance more followed by technological uncertainty and lastly supply uncertainty. According to the results, when the construct for demand uncertainity was introduced the R-square was 0.199 which shifted  from 0.138 where the  increase in the R-square was 0.061.On introduction supplier uncertainty the R-square shifted from 0.199 to 0.231 and when this construct was introduced the R-square increased by 0.032. On the introduction of the construct for technological uncertainty, the R-square shifted from0.231 to 0.235 and the R-square increased by 0.004.There these results have implications to not only firm owners but also managers of their supply chains.

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ISSN : 2251-1547