Impact of supply risk management on firm performance: a case of the Indian electronics industry

Abstract

Purpose

The purpose of this research is to study and examine the influence of systematic supply risk management (SRM) on the buyer's firm performance, mainly focussing on the Indian electronics industry.

Design/methodology/approach

The study has framed a set of hypotheses on the risk management model. A thorough literature review and experts' opinion were considered in framing constructs and hypothesis for the model. We adopted self-administration questionnaires mainly focusing on the Indian electronics industry. The derived hypothesis is tested using partial least squares (PLS) method from 140 survey data pertaining to small, medium and large scale industries.

Findings

Study justify that constructs with high loadings for risk identification, risk assessment, risk reduction, and risk monitoring supports all hypothesized relation to better risk management. The model captures superior risk identification, risk control and risk monitoring for overall firm performance, but fails to justify with organization supply risk assessment process on overall firm performance.

Research limitations/implications

The study mainly focused on SRM process on firm performance. Study mainly focused on single survey responses and expert's perceptions on SRM practices in Indian electronics industry.

Practical implications

Research empirically justifies the effects of SRM process on organization performance. Furthermore, effective SRM practices assist decision makers framing corrective strategies to mitigate risk occurrences and their negative impact.

Originality/value

This empirical work provides a deep understanding of SRM process on the Indian electronics industry and their perception towards firm performance. Moreover, this is one of the few empirical studies addressing SRM practices in the Indian electronics industry.

Citation

KT, R. and Sarmah, S.P. (2021), "Impact of supply risk management on firm performance: a case of the Indian electronics industry", International Journal of Productivity and Performance Management, Vol. 70 No. 6, pp. 1419-1445. https://doi.org/10.1108/IJPPM-04-2019-0205