RISK MANAGEMENT AND SUPPLY CHAIN RESILIENCE STRATEGY TO DELIVER BUSINESS PERFORMANCE IN THE DYNAMICAL ENVIRONMENTAL CHANGE

Abstract

The development of the Indonesian pharmaceutical industry is undermined by import dependency, regulatory frameworks, and environmental dynamics. This study investigates the mediating influence of supply chain (SC) resilience on business performance through the lenses of risk management, strategic agility, and knowledge management. Data were gathered via surveys from 150 pharmaceutical companies, complemented by expert interviews, and analysed using Structural Equation Modelling (SEM). SC resilience demonstrates a significant enhancement in business performance by mitigating the effects of disruptions and sustaining operational continuity. In this context, strategic agility positively influences SC integration, primarily due to its facilitation of adaptability and collaborative efforts. Conversely, knowledge management and risk management exhibit limited direct effects, suggesting their impact is contingent upon contextual variables. The evolving environmental landscape did not notably alter the interrelations among risk management, SC resilience, and performance, thereby illustrating the intricate nature of these associations within the industry. Accordingly, the findings underscore the importance of integrating agility within strategic planning alongside fostering a resilient SC to address the unique characteristics of the pharmaceutical sector. From a practical perspective, pharmaceutical firms are encouraged to align knowledge management practices with regulatory compliance and innovation imperatives while actively reinforcing SC resilience. A deeper understanding of the role of resilience in dynamic environments emerges, offering guidance on sustaining operational stability and enhancing organisational competitiveness.