Logistics Risk Management as a Mechanism for Ensuring Supply Chain Continuity and Enhancing Operational Capabilities in Saudi Food Manufacturing Companies

Abstract

Background: This study investigates the relationships between Logistics Risk Management (LRM), Supply Chain Continuity (SCC), and Operational Capabilities (OC) among food manufacturing companies in Saudi Arabia, addressing the limited empirical understanding of how logistics risk management contributes to operational capabilities through supply chain continuity. Methods: Drawing on Dynamic Capabilities Theory and Organizational Information Processing Theory, empirical data were collected through a survey of 275 respondents from Saudi food manufacturing companies. The proposed conceptual model was tested using Partial Least Squares Structural Equation Modeling (PLS-SEM) through Smart PLS. Results: The findings support all four proposed hypotheses. Logistics Risk Management has a strong positive effect on Supply Chain Continuity (β = 0.74, p < 0.001), while Supply Chain Continuity positively affects Operational Capabilities (β = 0.46, p < 0.001). Logistics Risk Management also has a significant direct effect on Operational Capabilities (β = 0.31, p < 0.001). Furthermore, Supply Chain Continuity partially mediates the relationship between Logistics Risk Management and Operational Capabilities (β = 0.28, p < 0.001). Among the dimensions of LRM, Risk Mitigation demonstrated the strongest contribution, followed by Risk Control, Risk Assessment, and Risk Identification. Conclusions: The study demonstrates that Logistics Risk Management represents an important organizational capability that strengthens Operational Capabilities both directly and indirectly by maintaining the continuity of critical supply chain activities. The findings extend existing research by identifying Supply Chain Continuity as a distinct mediating mechanism and provide theoretical and practical insights for improving operational capabilities and managing logistics disruptions within Saudi food manufacturing companies.