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Risk management of manufacturing multinational corporations: the moderating effects of international asset dispersion and supply chain integration

Wenjin Hu (School of Management, Zhejiang University, Hangzhou, China)
Yongyi Shou (School of Management, Zhejiang University, Hangzhou, China)
Mingu Kang (School of Management, Zhejiang University, Hangzhou, China)
Youngwon Park (Saitama University, Saitama, Japan and University of Tokyo, Tokyo, Japan)

Supply Chain Management

ISSN: 1359-8546

Article publication date: 26 September 2019

Issue publication date: 16 January 2020

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Abstract

Purpose

The purpose of this study is to investigate the contingencies of supply chain risk management (SCRM) in manufacturing multinational corporations (MNCs) by exploring the moderating role of international asset dispersion in the performance effect of SCRM, as well as the counteraction effect of supply chain integration (SCI).

Design/methodology/approach

Multi-country survey data from a sample of 378 responses collected by the sixth round International Manufacturing Strategy Survey were analyzed. Hierarchical regression analysis was conducted to test the proposed hypotheses.

Findings

The results demonstrate that SCRM improves the operational effectiveness of manufacturing MNCs but this performance effect is attenuated by international asset dispersion. Nevertheless, external integration can counteract the negative effect of international asset dispersion and ensure the efficacy of SCRM practices.

Practical implications

The results of this study provide suggestions for supply chain managers of manufacturing MNCs to better conduct SCRM practices under the condition of dispersed international assets. Besides, supply chain managers can leverage external integration to ensure the efficacy of SCRM practices.

Originality/value

Although there are plenty of studies on the relationship between SCRM and operational performance, prior findings are inconsistent. This study sheds light on the SCRM-operational performance relationship by considering how a manufacturing MNC’s international asset dispersion can influence the efficacy of SCRM practices and how SCI can attenuate the negative effect of international asset dispersion.

Keywords

Acknowledgements

This work was supported by the National Natural Science Foundation of China [grant numbers 71472166 and 71821002]; and the Humanities and Social Sciences Faculty Development Program of Zhejiang University.

Citation

Hu, W., Shou, Y., Kang, M. and Park, Y. (2020), "Risk management of manufacturing multinational corporations: the moderating effects of international asset dispersion and supply chain integration", Supply Chain Management, Vol. 25 No. 1, pp. 61-76. https://doi.org/10.1108/SCM-01-2019-0009

Publisher

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Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

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