Risk management and firm performance: the moderating role of supplier integration

Yongyi Shou (School of Management, Zhejiang University, Hangzhou, China)
Wenjin Hu (School of Management, Zhejiang University, Hangzhou, China)
Mingu Kang (School of Management, Zhejiang University, Hangzhou, China)
Ying Li (School of Management, Shandong University, Jinan, China)
Young Won Park (Faculty of Economics, Graduate School of Humanities and Social Sciences, Saitama University, Saitama, Japan) (Manufacturing Management Research Center, Faculty of Economics, The University of Tokyo, Tokyo, Japan)

Industrial Management & Data Systems

ISSN: 0263-5577

Publication date: 13 August 2018

Abstract

Purpose

The purpose of this paper is to scrutinize the performance effects of supply chain risk management (SCRM). Besides financial performance, two aspects of operational performance are examined: operational efficiency and flexibility. Moreover, the authors explore the moderating role of supplier integration in the relationship between SCRM and operational performance.

Design/methodology/approach

A survey-based methodology was adopted. Based on the data from an international survey, this study applied the structural equation modeling and latent moderated structural equations approach to test the hypotheses.

Findings

The results indicate that SCRM positively influences both operational efficiency and flexibility, and has an indirect effect on financial performance. In addition, supplier integration enhances the impact of SCRM on operational flexibility, but does not moderate the relationship between SCRM and operational efficiency.

Originality/value

This study extends the existing literature by providing a comprehensive analysis of the performance effects of SCRM. It also provides managerial insights on both risk management and supplier integration.

Keywords

Acknowledgements

This work was supported by the National Natural Science Foundation of China under Grant No. 71472166, and Natural Science Foundation of Shandong Province under Grant No. ZR2017BG020.

Citation

Shou, Y., Hu, W., Kang, M., Li, Y. and Park, Y. (2018), "Risk management and firm performance: the moderating role of supplier integration", Industrial Management & Data Systems, Vol. 118 No. 7, pp. 1327-1344. https://doi.org/10.1108/IMDS-09-2017-0427

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Publisher

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Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

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