Differences in security risk perceptions between logistics companies and cargo owners

Abstract

Purpose

Supply chain stakeholders may perceive security risks differently and thereby misalign mitigation strategies. Hence, causing weak spots in supply chains and thereby disruptions. The purpose of this paper is to determine whether supply chain companies actually perceive security risks and effectiveness of mitigation strategies differently.

Design/methodology/approach

Two survey studies measuring perception of security risks and effectiveness of measures have been developed and used to collect data from European and Latin American companies, grouped as cargo owners and logistics companies.

Findings

The findings of the surveys unveil that only two (out of six) security risks, namely, violation of customs non-fiscal regulations and illegal immigration, show significant differences between the two groups of companies. In addition, the surveys show that companies perceive equally the effectiveness of security measures. This study concludes that supply chains seem to have good visibility over the security risks of their partners. Hence, in terms of security, supply chain companies seem to have achieved a common understanding of risks and furthermore are able to act jointly to secure assets and operations.

Originality/value

Previous research claim supply chain stakeholders may perceive risks differently and thereby may fail to correctly align mitigation strategies. Yet, to the authors knowledge, previous research has not empirically demonstrated these differences in perceptions of risks and mitigation strategies.

Citation

Urciuoli, L. and Hintsa, J. (2016), "Differences in security risk perceptions between logistics companies and cargo owners", The International Journal of Logistics Management, Vol. 27 No. 2, pp. 418-437. https://doi.org/10.1108/IJLM-02-2014-0034