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Making dairy supply chains robust against corruption risk: a systemic exploratory study

Xiaojing Liu (Department of Information Systems & Operations Management, Business School, The University of Auckland, Auckland, New Zealand) (Department of Management Science and Engineering, School of Economics and Management, Zhejiang Sci-Tech University, Hangzhou, China)
Tiru Arthanari (ISOM Department, University of Auckland Business School, Auckland, New Zealand)
Yangyan Shi (College of Economics and Management, Nanjing Agricultural University, Nanjing, China) (Department of Management, Macquarie Business School, Macquarie University, Sydney, Australia) (Centre for Supply Chain Management, University of Auckland, Auckland, New Zealand)

The International Journal of Logistics Management

ISSN: 0957-4093

Article publication date: 2 October 2019

Issue publication date: 27 November 2019

703

Abstract

Purpose

To improve robustness of a dairy supply chain (SC) against corruption, the purpose of this paper is to propose a systemic model of a corruption impacted dairy SC, exposing relationships among SC operations, risks and the impact of corruption.

Design/methodology/approach

Cases from the dairy industry in New Zealand (NZ) are used for thematic analysis of interview data collected from participants at senior levels of NZ dairy firms. Based on these and other inputs from literature, a systemic model is built subsequently.

Findings

Mitigating certain risks can significantly alleviate the impact of corruption, an external factor, on supply chain performance (SCP). The causal loop diagram (CLD) developed here brings out the modifying effect of corruption on dairy risks and SCP.

Practical implications

The illustration of the CLD helps business managers better understand the interactions among risk variables and explains the systemic reasons for SC vulnerability.

Originality/value

This is the first paper to construct a holistic system to comprehensively reveal the interactions of supply chain risks (SCRs) and the impact of corruption. Also, by utilizing SCR interactions, this study indicates a pathway to mitigate the negative effects of corruption through improving dairy SC robustness.

Keywords

Acknowledgements

The authors acknowledge the sponsorship of “A project funded by the Priority Academic Program Development of Jiangsu Higher Education Institutions (PAPD)” and Fundamental research funds for the central universities of China (Project No. SKCX2018002).

Citation

Liu, X., Arthanari, T. and Shi, Y. (2019), "Making dairy supply chains robust against corruption risk: a systemic exploratory study", The International Journal of Logistics Management, Vol. 30 No. 4, pp. 1078-1100. https://doi.org/10.1108/IJLM-02-2018-0039

Publisher

:

Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

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