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Risk analysis of the rice supply chain in Cambodia

Bunhorng Rath|Thitima Wonginta|Chompoonut AMCHANG
정석물류통상연구원 (Jungseok Research Institute of International Logistics and Trade)|2022.06|Journal of International Logistics and Trade|제20권 제2호|pp. 39-58

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참고문헌

키워드

Structural equation modelRisk managementFarm householdsRisk identificationRisk investigationCambodian rice supply chain

초록

Purpose – This paper aims to analyze the risks faced by the Cambodian rice supply chain (RSC), including risk identification, risk investigation and risk management. Design/methodology/approach – The first qualitative area of exploration from this exploratory sequential design is to identify the potential risks, in which the authors conduct in-depth interviews with ten different experts in Cambodia. Using the structural equation model (SEM) in AMOS and descriptive statistics analysis, this study investigates the risks that affect the RSC performance on an environmental, social and economic basis and subsequently proposes risk management strategies. The authors collect quantitative data from 200 Cambodian farmers through interviews and surveys. Findings – The results illustrate that the farm households face 18 risk factors. The researchers consolidate 18 risk factors into four classifications: supply risks, production risks, demand risks and environmental risks. Nine experts out of the ten who were interviewed (90%) consider themselves “highly vulnerable” (with a rating of 4 or 5 on the Likert scale), while only one expert has a “neutral” stance (with a rating of 3 on the Likert scale); these results concerning risk identification are visualized in the likelihood effect matrix of the RSC. After investigating the risks, the authors found that RSC performance is significantly affected by the RSC risks. In particular, four groups are created, representing two different approaches to mitigate, avoid, transfer and cope with agricultural risks, i.e. ex ante and ex post risk management strategies. Originality/value – This study fully answers research questions regarding risk identification, risk investigation and risk management.

Abstract

Purpose – This paper aims to analyze the risks faced by the Cambodian rice supply chain (RSC), including risk identification, risk investigation and risk management. Design/methodology/approach – The first qualitative area of exploration from this exploratory sequential design is to identify the potential risks, in which the authors conduct in-depth interviews with ten different experts in Cambodia. Using the structural equation model (SEM) in AMOS and descriptive statistics analysis, this study investigates the risks that affect the RSC performance on an environmental, social and economic basis and subsequently proposes risk management strategies. The authors collect quantitative data from 200 Cambodian farmers through interviews and surveys. Findings – The results illustrate that the farm households face 18 risk factors. The researchers consolidate 18 risk factors into four classifications: supply risks, production risks, demand risks and environmental risks. Nine experts out of the ten who were interviewed (90%) consider themselves “highly vulnerable” (with a rating of 4 or 5 on the Likert scale), while only one expert has a “neutral” stance (with a rating of 3 on the Likert scale); these results concerning risk identification are visualized in the likelihood effect matrix of the RSC. After investigating the risks, the authors found that RSC performance is significantly affected by the RSC risks. In particular, four groups are created, representing two different approaches to mitigate, avoid, transfer and cope with agricultural risks, i.e. ex ante and ex post risk management strategies. Originality/value – This study fully answers research questions regarding risk identification, risk investigation and risk management.

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