Supplier Diversity Programs and Supply Chain Resilience in Egypt

Abstract

Purpose: The aim of the study was to assess the supplier diversity programs and supply chain resilience in Egypt.

Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.

Findings: The study found that supplier diversity programs (SDPs) play a crucial role in enhancing supply chain resilience by fostering a more robust, agile, and adaptable supply chain. These programs, which prioritize the inclusion of diverse suppliers such as minority-owned, women-owned, and small businesses, contribute to a broader supplier base, reducing dependency on a limited number of suppliers. This diversification mitigates risks associated with supply disruptions, as it provides alternative sources of goods and services in the face of unforeseen challenges. Additionally, SDPs encourage innovation and competitive pricing, as diverse suppliers often bring unique perspectives and solutions to the table. The integration of SDPs into supply chain strategies has shown to not only promote equity and economic growth but also enhance the overall stability and responsiveness of supply chains. This increased resilience is crucial for businesses aiming to navigate uncertainties and maintain operational continuity in today's dynamic market environment.

Implications to Theory, Practice and Policy: Resource-based view (RBV) theory, transaction cost economics and contingency theory may be used to anchor future studies on assessing the supplier diversity programs and supply chain resilience in Egypt. Companies should focus on developing robust metrics to measure the effectiveness of supplier diversity programs, ensuring these metrics go beyond diversity quotas to include performance indicators such as supply chain responsiveness, risk mitigation, and innovation outcomes. Governments and industry regulators should incentivize companies to adopt and expand supplier diversity programs through mechanisms such as tax benefits, grants, or recognition awards for demonstrating significant commitment and results.