Exploring the Mediating Effect of Supply Chain Risks on the Relationship Between Logistics Innovation and Operational Performance

Supply Chain Management is a significant and complex cycle within a business framework. The business must have the option to run production with the goal that it meets the order volume while keeping a reliably great quality product. Technologies that improve execution and performance capability can assist businesses in dealing with the dynamic changes. On-demand warehousing, collaborative mobile robots, truck platooning, drones and autonomous vehicles are among the noted supply chain logistics innovations that are likely to affect the operational performance/ Key Performance Indicators (KPIs) such as throughput, yield, downtime, equipment effectiveness and production capacity. In this study, a structured questionnaire is administered to 302 supply chain or practitioners in production and operations across the food processing sector through snowball sampling approach to assess the impact of supply chain logistics innovation indicators on the KPIs. Within this framework, the mediating role of the supply chain risks i.e., economic, environmental, ethical and others is analyzed. Analysis of structural equation model using SPSS AMOS reveals that there is a significant negative correlation between innovation indicators and risks in supply chain, implying that integration of innovative practices reduces risks in supply chain. Further, there is a positive impact on adoption of innovative practices on performance. The mediating role of supply chain risks is significant. The study highlights the importance of businesses to innovate for mitigating risks and enhancing performance.