The Effect of Environmental Uncertainty on Supply Chain Agility for Small and Medium-Sized Businesses (SMBs): Empirical Evidence on Coffee Shops in Indonesia

Abstract

The coffee shop business that is increasingly favored by business people in Indonesia has many challenges ranging from coffee bean suppliers to consumers with diverse demographics. The purpose of this study is to investigate the effect of environmental uncertainty on supply chain agility through supply chain orientation and market orientation variables. A total of 65 coffee shops have been used as research samples which are then analyzed by PLS-SEM to determine the effect between variables. The research findings indicate that environmental uncertainty has a very significant effect on supply chain agility. Thus, business owners and / or coffee shop managers must have the ability to respond quickly to an environment where the environment is difficult to predict but the response to environmental changes can indicate the success or failure of the decision making unit in the supply chain.

Keywords: environmental uncertainty, supply chain agility, supply chain orientation, market orientation, coffee shop

DOI: 10.7176/EJBM/12-33-08

Publication date: November 30^th 2020