Value-oriented supply chain risk management: you get what you expect
Abstract
Purpose
With the globalisation of supply chains the importance of supply chain risk management (SCRM) has grown considerably. Still, although both researchers and practitioners fully agree on its importance, most companies pay very limited attention to SCRM. The purpose of this paper is to use expectation confirmation theory to investigate the reasons for that.
Design/methodology/approach
The authors use a combination of six mini case studies and a survey of 89 companies to show how a different attitude towards SCRM can lead to greater value from SCRM efforts.
Findings
In line with the expectation confirmation theory the authors stipulate that the primary reason is in companies’ attitudes towards SCRM. Their main expectation is risk avoidance and not value generation. In such a case, even “successful” SCRM programmes merely confirm such an expectation (e.g. no risk materialised or with a limited impact) and the company continues to avoid risk while limiting the resources for SCRM. It is only when the expected benefit of SCRM is not solely risk avoidance but mainly value generation that increased attention can be expected over time.
Research limitations/implications
The paper is exploratory in nature. Some of the stipulations in the theoretical part were not fully investigated in the quantitative part. The survey had a relatively small sample and a low-response rate. The constructs used in the survey did not use previously validated questionnaires.
Practical implications
Companies should focus on changing expectations of their managers and employees regarding SCRM and emphasise the value potentially generated by SCRM.
Originality/value
Use of expectation confirmation theory to investigate the reasons for limited attention to SCRM, to improve the understanding of attitude towards SCRM and to open many important areas for further research.
Keywords
Acknowledgements
The authors gratefully acknowledge the financial support of Hiperos and DRK Research Institute. Peter Trkman acknowledges the financial support from the Slovenian Research Agency (Project No. J5-6816). Marcos Paulo Valaderes de Oliveira acknowledges the financial support from the FAPES – Fundação de Amparo à Pesquisa e Inovação do Espírito Santo.
Citation
Trkman, P., Oliveira, M.P.V.d. and McCormack, K. (2016), "Value-oriented supply chain risk management: you get what you expect", Industrial Management & Data Systems, Vol. 116 No. 5, pp. 1061-1083. https://doi.org/10.1108/IMDS-09-2015-0368
Publisher
:Emerald Group Publishing Limited
Copyright © 2016, Emerald Group Publishing Limited