Author(s)

IBRAHIM LABARAN ALI, ABIGAIL HIRD, MUHAMMAD TANKO, ROBERT IAN WHITFIELD

Abstract

The main objective of this study is to investigate how SMEs manage freight transport risk. This study builds on the argument from the contingent resources-based view that, for sustainable competitive advantage, SMEs need to develop capabilities to manage road freight transport risk. These capabilities, consistent with the contingent resource-based view, are approaches in managing road freight transport risk which needs to be lots of unique skills, knowledge and other resources that are commensurate to both the size and the supply chain environment of the SME. To achieve the objective of this study, it is deemed necessary to carry out this research through the lens of SMEs. In doing so, this study adopts a qualitative approach to gain a deeper understanding of SMEs’ approach to managing road freight transport risk. Data were collected through interviews from four case companies that were selected using a convenient and purposive sampling strategy. Findings indicated that the sampled SMEs have developed capabilities for managing road transport-related risk. While some of the risk management strategies such as internal control, driver’s orientation and partnering with police are common among sampled SMEs, collaboration with partners, specifically with those along transport route, is unique to only one of the SMEs. This study contributes to both the literature and practice of supply chain risk management as it relates to road transportation risk management by being among the few studies that have investigated freight transport risk from an SME perspective.

Keywords

road transportation, risk management, SME, contingent resource-based view, supply chain and logistics