MIDLANDS STATE UNIVERSITY

FACULTY OF BUSSINESS SCIENCES

RESEAERCH PROPOSAL
BY

BELIEVE OBVIOUS GATAKTA

REGISTRATION NUMBER: R225501G

RESEARCH TOPIC:

SUPPLY CHAIN RESILIENCE IN TIMES OF ECONOMIC INSTABILITY: A STUDY OF GAIN

CASH AND CARRY, GWERU.
1.0 INTRODUCTION

In today’s rapidly changing economic landscape businesses are increasingly exposed to

various forms of economic instability including inflation currency fluctuations interest
rate volatility and supply disruptions. These disruptions pose significant challenges to
supply chain operation particularly in regions like Gweru where formal retail businesses
operate under uncertain conditions. Supply resilience has become the strategy for
sustain operations in those uncertain conditions meeting customer demands and
maintaining competitiveness. In Zimbabwe formal grocery and basic goods retailers
play a vital role in the local economy providing essential products to communities. The
study is going to focus on one of the formal grocery retailers in Zimbabwe to explore
how economic instability influence supply chain resilience. These retailers often face
unique Challenges due to fluctuating economic conditions, including inflation, currency
volatility and supply chain disruptions. Supply chain Resilience revealing both
converging and diverging perspectives on how economies fluctuations Impact these
businesses. Despite this there is a notable gap in the literature concerning the specific
experiences of formal retailers this study aims to fill this gap by examining how
economic instability affects the supply chain resilience of formal grocery retailers.
Thereby contributing to a deeper understanding of their Adaptive strategies and the role
of community support in enhancing their resilience amidst economic challenges.

1.1 BACKGROUND OF THE STUDY

Economic instability is a state where an economy is subject to significant and often

unexpected fluctuations, disrupting normal functioning and undermining confidence
(StudySmarter, 2022; [Link], 2020). Supply chain resilience is the capacity
of a supply chain to prepare for, adapt to, and recover from disruptive events while
maintaining continuity and competitive advantage (Ponomarov & Holcomb, 2009). It's a
company's ability to resist and recover from shocks, such as natural disasters,
geopolitical conflicts, or economic crises (IBM, 2025).The concept of supply chain
resilience in business and academia is not entirely new but gained significant
prominence in the early 2000s following major global disruptions like the September
11th attacks and the SARS outbreak. Researchers like Christopher and Peck (2004) and
Sheffi (2005) moved the discussion beyond traditional risk management to a more
dynamic approach that emphasized a system's ability to "spring back" from disruption
(Pettit et al., 2019).: Formal retailers often rely on a vast network of international
suppliers and sophisticated logistics. Economic instability can lead to supplier
bankruptcies, production slowdowns, and increased transportation costs, causing
widespread disruptions. A European Parliament report highlighted how global supply
chain disruptions accounted for a significant portion of economic decline during recent
crises, proving that macroeconomic shocks transmit directly through these networks
(European Parliament, 2021). Recent events like the 2008 financial crisis, the COVID-19
pandemic, and ongoing geopolitical conflicts have broadened the scope. The focus has
shifted from mere recovery to proactively designing supply chains that are agile,
adaptable, and aligned to withstand and even thrive in the face of systemic shocks
(OECD, 2021).

GLOBAL LEVEL

The concept of supply chain resilience in a general business context emerged following
seminal work that moved beyond traditional risk management to a more dynamic
approach. Early research by scholars like Christopher and Peck (2004) and Sheffi (2005)
emphasized a supply chain's ability to "bounce back" from disruptions, defining
resilience as a system's capacity to return to its original or a more desirable state after
a shock (Pettit, Croxton and Fiksel, 2019). The 2008 financial crisis further highlighted
these vulnerabilities, but it was the widespread disruption caused by the COVID-19
pandemic that truly brought the issue to the forefront of global business strategy.
Starting from the COVID-19 era the world has been actively coping with these
vulnerabilities by adopting a new aspects that balances efficiency with security such as
the traditional lean, just-in-time (JIT) model is being re-evaluated in favour of a more
"just-in-case" approach, where retailers intentionally hold more inventory of critical
goods. For example, a 2022 survey found that 80% of global businesses planned to
increase their inventory holdings to create a buffer against future disruptions
(Richmond Fed, 2025). This shift is a direct response to the massive stockouts and
logistical nightmares experienced during the pandemic.
The formal retailers are actively diversifying their supplier networks and exploring
nearshoring or reshoring to reduce dependence on distant, high-risk regions. A
significant number of companies are actively pursuing this strategy; a 2021 study by
PWC found that over 50% of global manufacturers had plans to regionalize their supply
chains to increase resilience (PWC, 2021). This move, while potentially increasing costs,
is viewed as a necessary investment to ensure the continuity of supply during periods of
geopolitical and economic instability. Also retailer adapt technology in trying to cope
with supply chain resilience. Retailers are investing in data analytics, AI-driven
forecasting, and blockchain to enhance supply chain visibility and better predict
consumer demand and potential disruptions. A report by the European Parliament (2021)
highlighted the critical role of technology in building resilience, noting that better data
sharing and communication systems help firms anticipate and respond more effectively
to crises. These technologies allow for a more agile response to sudden demand shifts,
a common symptom of economic downturns

CONTINENTAL

Supply chain resilience, defined as the ability of supply networks to anticipate, adapt to,
and recover from disruptions while maintaining operational continuity (Ponomarov and
Holcomb, 2009), is critical in Africa, where economic instability—driven by geopolitical
tensions, inflation, currency fluctuations, and external shocks like the COVID-19
pandemic and the Russia-Ukraine conflict—poses significant challenges (UNCTAD,
2023). African economies often reliant on imported goods and hampered by
fragmented infrastructure face heightened risks such as supply bottlenecks and rising
costs, particularly in resource-dependent countries (Amankwah-Amoah, 2023). For
instance, sub-Saharan Africa has experienced disruptions in fertilizer and grain imports
due to global conflicts, exacerbating food insecurity and economic strain (IMF, 2023).
The businesses in Africa illustrate how African businesses navigate these challenges in
a hyperinflationary and politically unstable environment, underscoring the need for
continent-wide strategies to enhance supply chain resilience.

To address economic instability’s impact on supply chains, African businesses employ

adaptive measures such as supplier diversification, regional integration, digital
transformation, and inventory optimization (OECD, 2025). Strategies include leveraging
the African Continental Free Trade Area (AfCFTA) to boost intra-African trade, reducing
reliance on external markets, and adopting Fourth Industrial Revolution (4IR)
technologies like AI and blockchain for better visibility and predictive analytics (UNCTAD,
2025; Chigudu and Chavunduka, 2025). Key statistics highlight these efforts: 73% of
companies have adopted dual-sourcing strategies, 60% are regionalizing supply chains,
and 70% are accelerating modernization with collaborative tools (McKinsey & Company,
2024; Economist Impact, 2023). Additionally, reliance on large inventory buffers has
dropped to 34% from 59%, while two-thirds of firms have advanced planning systems,
though only 8% have achieved digital maturity (McKinsey & Company, 2024; Economist
Impact, 2023). These measures help businesses to counter disruptions while fostering
long-term sustainability through regional collaboration and technology adoption (Owusu
et al., 2025; Adebayo, 2025).

Despite these advancements, significant research gaps persist in understanding supply

chain resilience in Africa’s context of economic instability. There is limited exploration
of institutional and logistics infrastructure gaps that hinder resilience, as well as
insufficient focus on multi-stakeholder network perspectives involving governments and
local communities (Bensassi et al., 2025; Fan et al., 2023). Barriers to adopting AI and
big data in humanitarian supply chains, particularly in West and Southern Africa, remain
underexplored, as does the role of 4IR technologies in enabling inter-organizational data
sharing for SMEs (Owusu et al., 2025; Chigudu and Chavunduka, 2025). Furthermore,
the conceptualization of sustainable resilience in critical materials manufacturing in
Africa is underdeveloped, despite its potential to reshape global supply chains
(Mavhungu et al., 2024). Investigating these gaps through researches on influence of
economic instability on supply chain resilience can provide actionable insights for
policymakers and businesses aiming to strengthen supply chain resilience across the
continent.

NATIONAL LEVEL

Supply chain resilience in Zimbabwe, defined as the capacity of supply chains to persist,
adapt, or transform in the face of disruptions (Ponomarov and Holcomb, 2009), has
been severely tested by chronic economic instability, including hyperinflation, currency
volatility, foreign currency shortages, and external shocks such as the COVID-19
pandemic and climate-related events (World Bank, 2024). The national economy,
characterized by a GDP growth decline to 2% in 2024 due to El Niño-induced droughts
and macroeconomic challenges, has amplified supply chain vulnerabilities, particularly
in sectors like manufacturing and retail, where informalization exceeds 75% of
businesses (African Leadership Magazine, 2025). For instance, the manufacturing
sector's contribution to GDP dropped from 14.2% in 2019 to 11.7% in 2021, reflecting
disruptions from economic policy shifts and supply bottlenecks (Chikoko et al., 2024).
In this context, the research will illustrates how local businesses navigate these
challenges by adopting adaptive strategies to maintain operational continuity amid high
inflation and currency devaluations.

Zimbabwean businesses address economic instability's influence on supply chain

resilience through measures such as risk identification, agility enhancement, cross-
sector collaboration, and digital transformation, which help mitigate disruptions like
border closures and inflationary pressures (Mawonde et al., 2023; Nyamushanya and
Majozi, 2022). For example, in the pharmaceutical retail sector, firms employ risk
avoidance and pooling to counter economic risks such as unstable exchange rates and
high bank charges, fostering resilience by improving stock availability and delivery
flexibility (Nyamushanya and Majozi, 2022). Humanitarian organizations have similarly
implemented preparedness strategies during the COVID-19 era, which positively
impacted operational performance despite economic strains (Mawonde et al., 2023).

According to Chikoko et al., (2024) statistics on these measures include: 60.7% of

manufacturing organizations have formalized risk management policies to curb
economic risks 82.1% conduct regular risk assessments to enhance resilience. Supply
chain agility showed a regression coefficient of 0.971 on stock availability in
humanitarian contexts risk avoidance had a beta value of 0.575 in boosting resilience
to economic risks in pharmaceuticals (Nyamushanya and Majozi, 2022) 57.1% of
manufacturers experienced major risk events in the past year, prompting increased
collaboration (Chikoko et al., 2024) Several studies have explored the link between
economic instability and supply chain resilience in Zimbabwe, such as Mawonde et al.
(2023), who found that resilience strategies significantly enhanced operational
performance in humanitarian organizations during COVID-19-induced economic
disruptions, and Nyamushanya and Majozi (2022), who demonstrated positive effects
of risk management on resilience in pharmaceutical retailers facing currency volatility.
Additionally, Chikoko et al. (2024) linked economic risks like policy changes to
manufacturing vulnerabilities, emphasizing risk management for resilience. However,
these studies leave gaps, including limited empirical data on sector-specific strategies
for SMEs, under-exploration of digital tools like blockchain in fragile economies, and a
lack of longitudinal analyses on long-term impacts (Muzondo and Pashapa, 2025;
Mawonde et al., 2023). Other uncovered areas include barriers to employee training in
risk management and integration of cultural factors in assessments (Chikoko et al.,
2024; Nyamushanya and Majozi, 2022). This research will cover these gaps by providing
a case-specific analysis of retail strategies, incorporating digital adoption and
longitudinal insights to inform policy in Zimbabwe's unstable economy.

1.2 PROBLEM STATEMENT

This research will investigates how economic instability impacts supply chain
resilience in Zimbabwe, focusing on Gain Cash and Carry a retail wholesaler to
understand how businesses adapt to disruptions caused by macroeconomic challenges.
The study explores the effects of economic factors such as hyperinflation, currency
volatility, foreign currency shortages and policy inconsistencies on supply chain
operations while evaluating the effectiveness of resilience strategies like risk
management, supplier diversification, digital transformation, and cross-sector
collaboration. It aims to address gaps in existing literature, including the lack of sector-
specific insights for SMEs, limited exploration of digital tool adoption in fragile
economies, and insufficient longitudinal data on resilience outcomes in Zimbabwe’s
retail sector.

The study focuses on key economic instability concepts that disrupt supply chains.
Hyperinflation erodes purchasing power and increases operational costs, significantly
affecting procurement and pricing strategies. Currency volatility disrupts import pricing
and supplier reliability due to frequent devaluations of the Zimbabwean dollar. Foreign
currency shortages limit access to critical imports, creating bottlenecks in supply
availability. Policy inconsistencies, such as abrupt regulatory changes, create
uncertainty, further complicating supply chain planning and execution. These factors
strain supply chain continuity, increase lead times, and elevate costs, necessitating
robust resilience measures. The research will assess how these stressors affect Gain
Cash and Carry’s supply chain, analyzing strategies like risk avoidance and agility to
provide actionable insights for enhancing resilience.

By examining these economic instability concepts, the study seeks to fill research gaps
by offering empirical evidence on digital adoption barriers, the role of cultural factors in
risk management, and long-term resilience impacts in Zimbabwe’s retail sector. It will
contribute to a deeper understanding of how targeted resilience strategies can
counteract economic instability, providing practical recommendations for policymakers
and businesses to strengthen supply chains in Zimbabwe’s volatile economic
environment.

1.3 RESEARCH OBJECTIVES

1. To identify the key economic instability factors that influence supply chain resilience
at Gains Cash and Carry.

2. To assess the current supply chain strategies employed at Gains Cash and Carry

3. To evaluate the effectiveness of supply chain strategies at Gains Cash and Carry.

4. To recommend supply chain resilience strategies to employ at Gains Cash and Carry.

1.4 CONCEPTUAL FRAMEWORK

SUPPLY CHAIN
INFLATION RESILIENCE of GROCERY
CURRENCY INTREST RATE CHANGES
AND
FLACTUATIONS
GOODS RETAILERS
EXPLANATION OF RELATIONSHIPS

The conceptual framework illustrates how economic instability factors, specifically

inflation, currency fluctuations, and interest rate changes, influence the supply chain
resilience of grocery and goods retailers. These three independent variables are shown
to have a direct impact on the dependent variable, supply chain resilience. The model
then shows that supply chain resilience, in turn, affects the overall performance of the
retailers. This framework suggests that when economic conditions are unstable, with
high inflation, fluctuating currency values, and changing interest rates, a retailer's ability
to maintain a resilient supply chain is tested, which ultimately impacts its business
performance.

1.5 RESEARCH QUESTIONS

1. What are the key economic instability factors that affect supply chain resilience at
Gains cash and carry?

2. What are the current supply chain strategies employed at Gains Cash and Carry?

3. How effective are the current supply chain strategies at Gains Cash and carry in
mitigating economic instability?

4. What are supply chain resilience strategies to withstand economic shocks can be
recommended at Gains Cash and Carry?

1.6 RESEARCH JUSTIFICATIONS

This research is necessary because there is a significant research gap in understanding

how economic instability affects supply chain resilience, especially in the context of
specific companies operating in highly volatile economies. While a general body of
literature exists on supply chain management, it often focuses on stable, developed
economies and global disruptions, failing to capture the unique, recurring challenges
faced by businesses in contexts of hyperinflation and currency crises.
Existing researches have explored the link between economic instability and supply
chain resilience in Zimbabwe. According to Mawonde et al. (2023) investigated that the
effect of supply chain resilience strategies such as agility and cross-sector
collaboration, on the operational performance of humanitarian organizations during the
COVID-19 period, finding that these strategies improved stock availability and delivery
times in the face of economic disruptions. Also Nyamushanya and Majozi (2022)
analyzed that supply chain risk management in pharmaceutical retailers, demonstrating
that risk avoidance and pooling enhanced resilience against economic risks like
currency volatility and high bank charges. Chikoko et al. (2024) examined risk
management practices in Zimbabwe’s manufacturing sector, highlighting how
formalized risk policies and regular assessments mitigated disruptions from policy
changes and economic volatility.

Existing studies provide valuable insights but leave significant gaps that this research
aims to fill, particularly in the retail sector, by offering sector-specific, empirical, and
longitudinal evidence to inform both practice and policy. The research gaps left by these
studies justify the current investigation includes limited empirical research on retail-
specific supply chains particularly for SMEs like Gain Cash and Carry, which face
unique challenges due to their scale and market dynamics. Also there is gap in the
adoption of digital tools, such as blockchain or AI, to enhance resilience in Zimbabwe’s
fragile economy remains underexamined, despite their potential to improve
transparency and forecasting. Furthermore existing studies lack longitudinal analyses
to assess the long-term effectiveness of resilience strategies, limiting insights into
sustained impacts. Additionally, barriers to employee training in risk management and
the influence of cultural factors on resilience strategies are understudied, as noted in
Chikoko et al. (2024) and Nyamushanya and Majozi (2022). This research will address
these gaps by providing a detailed case study of retail resilience, exploring digital tool
adoption, and offering longitudinal insights, thereby contributing actionable
recommendations for Zimbabwean businesses and policymakers to strengthen supply
chains amid economic instability.
1.7 SIGNIFICANCE OF THE STUDY

To the Student

This study will provide a valuable opportunity for the student to gain hands-on
experience in qualitative research, applying theoretical concepts of supply chain
resilience to a real-world business in a unique and challenging environment. The student
will develop critical analytical and problem-solving skills by investigating how Gains
Cash and Carry navigates complex economic risks. This practical application of
knowledge will deepen their understanding of supply chain dynamics far beyond what is
possible from classroom theory alone. Furthermore, the project will enhance the
student's ability to conduct interviews, analyze data, and present findings in a structured,
professional manner, which are highly sought-after skills in both academic and
corporate settings.

To the Company (Gains Cash and Carry)

The findings of this research will provide Gains Cash and Carry with a comprehensive,
external analysis of its supply chain vulnerabilities and strengths. It will offer data-driven
insights and recommendations on how to further improve its resilience against
economic shocks. For the broader retail and wholesale industry in Zimbabwe and other
developing nations, the study will serve as a practical case study on best practices for
managing supply chains in volatile economies. It will highlight specific strategies—such
as diversified sourcing, strategic inventory holding, and leveraging informal
networks—that other businesses can adopt to ensure a continuous supply of goods,
ultimately contributing to greater economic stability and food security for the population.

To the Subject ( Supply Chain Management)

This research will make a significant contribution to the academic literature on supply
chain management and resilience. By focusing on a specific company in a unique,
hyperinflationary environment, it will fill a significant gap in existing research, which has
largely overlooked the specific challenges faced by businesses in such contexts. The
study will test and potentially refine existing theoretical models of supply chain
resilience, adding a new dimension of understanding. It will also serve as a foundational
study, paving the way for future research on the role of informal economic practices and
adaptive strategies in building resilient supply chains in developing countries.

1.8 Assumptions

The research will assume that key personnel at Gains Cash and Carry will be willing and
able to participate in interviews and provide truthful information about their supply chain
operations. I will going to use qualitative data analysis to collect dat. I will assumed that
the qualitative data gathered through these interviews, as well as any observational data,
will be a reliable and valid source of information for understanding the company's
strategies. Also i assume that access to the company's sites and relevant documents
will be granted, enabling a comprehensive investigation.

The research is based on the assumption that economic shocks like hyperinflation,
currency volatility, and policy change ar the primary drivers of the supply chain
challenges faced by Gains Cash and Carry. While other factors like political instability or
global supply chain issues may exist, this study will assume that economic factors are
the most significant and directly influence the company's resilience strategies. It will
also assume that supply chain resilience is a concept that can be effectively measured
and analyzed in this specific, non-traditional economic environment.

The research will assume that Gains Cash and Carry's experiences are, to some extent,
representative of other businesses operating in similar economic conditions within
Zimbabwe. While each company is unique, the study will assume that the insights
gained from this case study can provide a general understanding of how the broader
industry copes with economic instability. It will also be assumed that the economic
environment in Zimbabwe, while volatile, will not undergo a complete and unforeseeable
collapse during the research period that would render the data and analysis irrelevant.

1.9 DELIMITATIONS

Geographical Location
This study will be geographically delimited to Gains Cash and Carry's Head Office and
its major branches in Harare, Zimbabwe. While Gains has a nationwide presence,
focusing on the main operational hub will allow for a deep-dive case study. This
limitation is necessary to ensure the research is manageable and to allow for the
collection of detailed, qualitative data from the central decision-making unit and key
distribution points.

Supply Chain Variables and Principles

The study will analyze how the company's relationships with local and international
suppliers are managed in a volatile economic environment. It will investigate strategies
such as supplier diversification and strategic purchasing to mitigate currency and
inflation risks. Also the research will examine inventory-holding strategies, including the
use of strategic stockpiling, to buffer against supply disruptions and currency
devaluation. The study will explore how Gains Cash and Carry ensures the timely and
cost-effective movement of goods from its warehouses to its retail branches and its
customers, despite challenges like fuel shortages and poor road infrastructure.

Targeted Population

The targeted population for this study will be a small group of key personnel at Gains
Cash and Carry. This will include senior managers in the procurement, finance, and
logistics departments, as well as branch managers. These individuals are selected
because they are directly involved in the strategic and operational decisions related to
the company's supply chain and will be able to provide the most relevant and insightful
data. The study will not include other formal retailers, informal traders, or end-
consumers.

Time Period

This research will analyze the period from January 2020 to August 2025. This
timeframe is chosen because it encompasses a period of significant economic volatility
in Zimbabwe, including the introduction of a new currency (the ZiG in 2024), periods of
hyperinflation, and the lingering effects of global events. Studying this specific five-year
period will provide a relevant and contemporary context for understanding how the
company's supply chain resilience has been tested and adapted.

1.10 LIMITATIONS

Case Study Design Limitations

Since this a single case study the findings will not be generalizable to the entire
Zimbabwean retail industry. The unique operational model and specific internal
strategies of Gains Cash and Carry may not be directly applicable to other supermarkets
or smaller retailers. This will limit the ability to draw broad conclusions about the entire
sector. Additionally, the study will be susceptible to researcher bias as the interpretation
of qualitative data from interviews will be subjective. The findings' validity will depend
heavily on the researcher's ability to remain objective during analysis.

Data Accessibility and Reliability Issues

Access to sensitive company data, such as sales figures, inventory levels, and financial
records, will likely be a significant challenge. Private companies in Zimbabwe are often
reluctant to share such information with external researchers due to confidentiality
concerns and competition. The research will have to rely on information shared by
management, which may be filtered or incomplete. Furthermore, the reliability of data
can be a concern in a hyperinflationary environment where official figures may not
accurately reflect real-time market conditions, forcing reliance on informal or anecdotal
evidence.

Contextual and Environmental Challenges

The research will be conducted within a highly dynamic and unstable economic
environment. The rapid policy changes, such as the introduction of a new currency or
sudden import regulations, could alter the supply chain landscape unexpectedly during
the research period. This makes it challenging to capture a stable snapshot of the
company's strategies. Additionally, the political and legal frameworks, including any
legislation on information dissemination, could present unforeseen hurdles. The study
will also be limited by the researcher's ability to fully understand the intricate and often
informal networks that are crucial to a business's survival in Zimbabwe's unique
operating context.

1.10 DEFINATION OF TERMS

1.11 BUDGET AND TIMELINE

Data collection: 1 month

Analysis & writing: 2 months

Printing & binding: $20

Total budget: Approx. USD 200 (including transport & internet)