Investigating The Relationship Between Critical Risks, Resilience, And Sustainable Performance In Construction Material Supply Chains: A Case Of East-Shoa Zone Construction Authority

Abstract

This Thesis Investigates The Intricate Interplay Between Critical Risks, Measures To Enhance Resilience, And Indicators Of Sustainable Performance Within Construction Material Supply Chains, Specifically Focusing On The East Shoa Zone Construction Authority In Ethiopia. The Construction Industry Is Vital For Economic Growth, Especially In Developing Nations Like Ethiopia, Where Construction Material Supply Chains Face Significant Vulnerabilities. Existing Research Often Overlooks The Unique Challenges In These Contexts And Tends To Treat Risks, Resilience, And Sustainability As Isolated Concepts. A Mixed-Methods Approach Was Used, Primarily Employing A Census-Based Questionnaire Survey With 159 Participants And Supplementary Semi-Structured Interviews. Data Analysis Involved Principal Component Analysis And Structural Equation Modeling. Principal Component Analysis Identified Seven Critical Risk Dimensions, Such As Financial And Production Planning Risk, Explaining 47.93% Of The Variance. It Also Identified Five Resilience Enhancement Measures, Including Customer Relationship & Potential Failures, Explaining 55.34% Of The Variance, And Four Sustainable Performance Indicators, Such As Environmental Impact & Social Responsibility, Explaining 52.01% Of The Variance. The Structural Equation Modeling Model Demonstrated Excellent Fit With A Chi-Squared To Degrees Of Freedom Ratio Of 1.57, A Root Mean Square Error Of Approximation Of 0.042, And A Comparative Fit Index Of 0.975. Key Findings Indicate A Significant Positive Influence Of Critical Risks On Resilience Measures (Beta = 0.500, P = 0.000), And Resilience Measures On Sustainable Performance (Beta = 0.600, P = 0.000). Critical Risks Also Directly And Negatively Influenced Sustainable Performance (Beta = -0.400, P = 0.000). Importantly, Resilience Measures Partially Mediated The Relationship Between Critical Risks And Sustainable Performance, With An Indirect Effect Of Beta = 0.300 (P < 0.001). The Study Concludes That While Critical Risks Directly Hinder Sustainable Performance, They Also Act As A Catalyst For Developing Resilience. This Resilience, In Turn, Significantly Enhances Sustainability And Buffers The Negative Impact Of Risks. Therefore, Strategic Investments In Resilience Capabilities Are Crucial For Fostering Sustainable Construction Material Supply Chains In Developing Contexts.