The Effects of Supply Chain Disruptions on Entrepreneurship from an Emerging Market

ABSTRACT: Supply chain disruptions serve as threats to the achievement of business goals and operational performance, especially when they are not properly mitigated. In a world where businesses are vulnerable to social, economic and environmental uncertainties, it is important that business owners or leaders can identify and also mitigate against disruptions irrespective of the context. In this study, we examine the supply chain disruptions experienced in an emerging market, the effects of disruptions and how this can be mitigated, from a contingency theory perspective. Specifically, the study took into consideration the supply chain disruptions experienced in an emerging market, the effects of disruptions and how these can be mitigated were considered in this study. This study employs a mixed-method research design, which involves conducting one-on-one interviews to identify the factors that contribute to disruptions in the supply chain processes of enterprises. Additionally, the DEMATEL approach is used to determine the most significant factors causing these challenges. The qualitative and quantitative components involve the use of the one-on-one interviews to identify the factors contributing to entrepreneurs' supply chain disruptions. A DEMATEL analytical approach was used to identify the most important supply chain disruption factors (SCDF) contributing to entrepreneurship challenge. The findings showed that the supply chain disruptions facing entrepreneurs in Nigeria include transportation, power supply, actions of competitors, machine breakdown, fluctuating prices, variation in demand, customers' boycott, fire outbreak, supplier quality issues, fluctuating customer demand and others. The study also observed that supply chain disruptions with the most critical factors that affect entrepreneurs in Nigeria are natural disasters (ND) (which is primarily flooding in this case), political issues (PO) and transportation issues (TR). The most important factor is natural disasters, especially due to flooding-related issues, followed by political issues and corruption, transportation issues, fire outbreaks, terrorism, customer boycotts, power issues and others. It was suggested that supply chain disruptions can be minor or major, and regardless of their nature, they can lead to more devastating outcomes for entrepreneurs. The study concluded that operations managers must be proactive in dealing with supply chain disruptions and adopt contingency approaches for controlling disruptive outcomes.