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Article
Publication date: 15 May 2017

Yevgen Bogodistov and Veit Wohlgemuth

The purpose of this study is to enhance the existing enterprise risk-management (ERM) theory by introducing both a resource-based view and a dynamic capability

4297

Abstract

Purpose

The purpose of this study is to enhance the existing enterprise risk-management (ERM) theory by introducing both a resource-based view and a dynamic capability perspective. These strategic management concepts might resolve several theoretical shortcomings in the field of risk management. The concept of risk-management capabilities is proposed as an explanation of a firm’s risk resilience.

Design/methodology/approach

This paper is conceptual in nature. For illustrative purposes, the paper refers to practical examples.

Findings

First, the resource-based view provides a framework that helps to set priorities in risk management. Second, the dynamic capability perspective illustrates how firms can handle unforeseen events. Third, it is proposed that dynamic capabilities are needed to allow a constant reassessment of the impact of specific resources and, consequently, of ERM priorities. Fourth, a risk-management capability, as an integral part of a dynamic capability, allows firms to develop risk resilience in turbulent environments.

Research limitations/implications

This paper develops an enhanced framework for ERM within specific boundary conditions. It shows how priorities at the strategic level are to be set, and how these priorities influence the operational level of risk management.

Practical implications

The framework provides clear guidelines on setting priorities in ERM and implementing a risk-management process within firms.

Originality/value

This study contributes to the theoretical literature on ERM by enhancing it through a new framework. The resource-based view and dynamic capability perspective benefit through insights from risk-management literature.

Details

The Journal of Risk Finance, vol. 18 no. 3
Type: Research Article
ISSN: 1526-5943

Keywords

Article
Publication date: 2 January 2018

Dong-Wook Kwak, Young-Joon Seo and Robert Mason

The purpose of this paper is to propose and validate a theoretical model to investigate whether supply chain (SC) innovation positively affects risk management capabilities

6777

Abstract

Purpose

The purpose of this paper is to propose and validate a theoretical model to investigate whether supply chain (SC) innovation positively affects risk management capabilities, such as robustness and resilience in global SC operations, and to examine how these capabilities may improve competitive advantage.

Design/methodology/approach

A theoretical model was developed from extant studies and assessed through the development of a large-scale questionnaire survey conducted with South Korean manufacturers and logistics intermediaries involved in global SC operations. The data were analysed using confirmatory factor analysis and structural equation modelling to validate the suggested model.

Findings

It was found that innovative SCs have a discernible positive influence on all dimensions of risk management capability, which in turn has a significant impact on enhancing competitive advantage. Therefore, this work provides evidence for the importance of SC innovation and risk management capability in supporting competitive advantage.

Research limitations/implications

This study contributes to providing an empirical understanding of the strategic retention of SC innovation and risk management capabilities in the SC management discipline. Furthermore, it confirms and expands existing theories about innovation and competitive advantage.

Practical implications

The finding provides firm grounds for managerial decisions on investment in technology innovation and process innovation.

Originality/value

This research is the first of its kind to empirically validate the relationships between SC innovation, risk management capabilities and competitive advantage.

Details

International Journal of Operations & Production Management, vol. 38 no. 1
Type: Research Article
ISSN: 0144-3577

Keywords

Open Access
Book part
Publication date: 1 May 2019

Abderisak Adam and Göran Lindahl

The purpose of this paper is to examine the Company Dynamic Response Map (CDRM) risk management model that uses the dynamic capabilities concept. The study examines risks…

Abstract

Purpose

The purpose of this paper is to examine the Company Dynamic Response Map (CDRM) risk management model that uses the dynamic capabilities concept. The study examines risks associated with strategic decision-making in construction projects and evaluates proposed methods that connect the dynamic capabilities of project-based organisations with risk management.

Design/Methodology/Approach

This preliminary study examines risks associated with strategic decision-making in construction projects and evaluates a proposed model that connects the dynamic capabilities of project-based organisations with risk management. Specifically, the CDRM model is evaluated, a risk management model developed by Arena et al. (2013) to better respond to risks and opportunities based on the concept of dynamic capabilities.

Findings

We argue that although the CDRM presents a promising development in that it uses dynamic capabilities prospectively in a risk management model to produce tangible results, there are, nonetheless, impediments to the CDRM being used by construction clients. The primary impediment relates to the issue of categorisation, the difficulty in assigning a specific identified risk to a particular category of dynamic capabilities.

Research Limitations/Implications

A conceptual argument is made and not an empirical one.

Practical Implications

The CDRM model was developed to be used in practice and this paper evaluates that model.

Originality/Value

Contributes to both the dynamic capabilities literature as well as risk management literature. The paper ends with a discussion on the possible merits of the CDRM, and an evaluation on potential impediments to its use by construction clients.

Details

10th Nordic Conference on Construction Economics and Organization
Type: Book
ISBN: 978-1-83867-051-1

Keywords

Article
Publication date: 19 February 2020

Atanu Chaudhuri, Abhijeet Ghadge, Barbara Gaudenzi and Samir Dani

The purpose of the paper is to develop a conceptual framework for improving the effectiveness of risk management in supply networks following a critical literature review.

1119

Abstract

Purpose

The purpose of the paper is to develop a conceptual framework for improving the effectiveness of risk management in supply networks following a critical literature review.

Design/methodology/approach

A critical review of 91 scholarly journal articles published between 2000 and 2018 supports the development of an integrated conceptual framework.

Findings

The findings emphasize that supply chain integration (SCI) can have both a positive and negative impact on the effectiveness of risk management in supply networks. It is possible to have a positive effect when SCI can be used to develop competencies in joint risk planning within the organization and with wider supply network members and, in turn, to develop collaborative risk management capabilities. Supply network characteristics can influence whether and the extent to which SCI has a positive or negative impact on risk management effectiveness.

Research implications

The conceptual framework can be used to empirically assess the role of SCI for effective risk management. Dynamic evaluation of the effectiveness of risk management and potential redesign of the supply network by considering other contingent factors are some future research avenues.

Practical implications

There is a need for developing specific competencies in risk planning within organizations and joint risk planning with supply network members which, in turn, can help develop collaborative risk management capabilities to improve the effectiveness of risk management in supply networks. Network characteristics will influence whether and the extent to which SCI results in the effectiveness of risk management.

Originality value

Moving beyond recent (systematic) reviews on supply chain risk management, this study develops a novel conceptual framework interlinking SCI and the effectiveness of risk management while considering network characteristics.

Details

International Journal of Logistics Management, The, vol. 31 no. 1
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 27 May 2014

Marika Arena, Giovanni Azzone, Enrico Cagno, Amerigo Silvestri and Paolo Trucco

This paper aims to propose a model, to operationalize the idea of enterprise risk management (ERM), relying on the concept of capabilities. The proposed model, labelled…

Abstract

Purpose

This paper aims to propose a model, to operationalize the idea of enterprise risk management (ERM), relying on the concept of capabilities. The proposed model, labelled “Spring model”, is specifically tailored to the characteristics of project-based organisations, where risk is to be managed transversally to different organizational levels (enterprise, project portfolio, functions, projects).

Design/methodology/approach

A case study methodology is used to exemplify the functioning of the proposed model and display the suitability of the concept of capabilities, as means whereby companies can manage their risk. Data were collected from different sources over a time frame of three years: semi-structured interviews, official documents and presentations, archives, direct observation and internal document usually not available to the public.

Findings

The “Spring model” explains how risk can impact different organizational levels (enterprise, project portfolio, functions, projects), and how risk can be effectively managed, at different organizational levels, through the organization's capabilities.

Practical implications

The paper gives concrete guidance on the operational elements that project-based organisations should consider for managing risks in a comprehensive and integrated way and discusses potential analysis/insights that could be derived embracing the capability perspective. The empirical testing, performed in a leading oil and gas company, provides an example of its functioning.

Originality/value

The paper represents an attempt to apply ERM concepts and tools to operations, making a connection between research in corporate governance and finance, where the ERM concept originated, and research in project management, where attention of researchers tended to concentrate on specific types of risk management practices.

Details

International Journal of Energy Sector Management, vol. 8 no. 2
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 10 January 2018

Derek Friday, Suzanne Ryan, Ramaswami Sridharan and David Collins

The purpose of this paper is to identify and analyse collaborative risk management (CRM) literature to establish its current position in supply chain risk management

4030

Abstract

Purpose

The purpose of this paper is to identify and analyse collaborative risk management (CRM) literature to establish its current position in supply chain risk management (SCRM) and propose an agenda for future research.

Design/methodology/approach

A systematic literature review of 101 peer-reviewed articles over a 21-year period was employed to analyse literature and synthesise findings to clarify terminology, definitions, CRM capabilities, and underlying theory.

Findings

CRM as a field of research is in its infancy and suffers from imprecise definitions, fragmented application of capabilities, and diverse theoretical foundations. The term CRM is identified as a more representative description of relational risk management arrangements. Six capabilities relevant to CRM are identified: risk information sharing, standardisation of procedures, joint decision making, risk and benefit sharing, process integration, and collaborative performance systems.

Originality/value

The paper provides a new definition for CRM; proposes a holistic approach in extending collaboration to SCRM; identifies a new capability; and provides a range of theories to broaden the theoretical scope for future research on CRM.

Details

International Journal of Physical Distribution & Logistics Management, vol. 48 no. 3
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 6 July 2012

Xiao‐Hua Jin, Guomin Zhang and Rebecca J. Yang

The purpose of this paper is to investigate and uncover key determinants that could explain partners' commitment to risk management in public‐private partnership projects…

2004

Abstract

Purpose

The purpose of this paper is to investigate and uncover key determinants that could explain partners' commitment to risk management in public‐private partnership projects so that partners' risk management commitment is taken into the consideration of optimal risk allocation strategies.

Design/methodology/approach

Based on an extensive literature review and an examination of the purchasing power parity (PPP) market, an industry‐wide questionnaire survey was conducted to collect the data for a confirmatory factor analysis. Necessary statistical tests are conducted to ensure the validity of the analysis results.

Findings

The factor analysis results show that the procedure of confirmatory factor analysis is statistically appropriate and satisfactory. As a result, partners' organizational commitment to risk management in public‐private partnerships can now be determined by a set of components, namely general attitude to a risk, perceived one's own ability to manage a risk, and the perceived reward for bearing a risk.

Practical implications

It is recommended, based on the empirical results shown in this paper, that, in addition to partners' risk management capability, decision‐makers, both from public and private sectors, should also seriously consider partners' risk management commitment. Both factors influence the formation of optimal risk allocation strategies, either by their individual or interacting effects. Future research may therefore explore how to form optimal risk allocation strategies by integrating organizational capability and commitment, the determinants and measurement of which have been established in this study.

Originality/value

This paper makes an original contribution to the general body of knowledge on risk allocation in large‐scale infrastructure projects in Australia adopting the procurement method of public‐private partnership. In particular, this paper has innovatively established a measurement model of organisational commitment to risk management, which is crucial to determining optimal risk allocation strategies and in turn achieving project success. The score coefficients of all obtained components can be used to construct components by linear combination so that commitment to risk management can be measured. Previous research has barely focused on this topic.

Details

Construction Innovation, vol. 12 no. 3
Type: Research Article
ISSN: 1471-4175

Keywords

Article
Publication date: 7 December 2020

Juneho Um and Neungho Han

This study aims to theoretically hypothesise and empirically explore the relationships amongst global supply chain risks, supply chain resilience and mitigating strategies.

3621

Abstract

Purpose

This study aims to theoretically hypothesise and empirically explore the relationships amongst global supply chain risks, supply chain resilience and mitigating strategies.

Design/methodology/approach

The study adopts supply chain resilience as a dynamic capability and resilience capability as a mediating prerequisite in addressing supply chain risk in sourcing, manufacturing and delivery. The moderating role of diverse mitigating strategies is tested to enhance supply chain resilience. Data collected via survey was used for structural equation modelling and additional tests to explore appropriate mitigating strategies for differing risk environments.

Findings

Achieving better supply chain resilience capability plays an important mediating role between supply chain risks and resilience, while the relationships depend on the performance of seven mitigating strategies.

Research limitations/implications

The findings contribute to the theoretical development of risk management issues in global supply chains by suggesting the role of supply chain resilience capability.

Practical implications

The findings offer managerial guidance on how to mitigate the global supply chain risk through the appropriate practice of strategies to strengthen supply chain resilience in an uncertain environment.

Originality/value

This is the first empirical research examining the impact of mitigating strategies on supply chain resilience. The results provide practical implications for managing uncertain events and offering theoretical insight for future research in supply chain resilience.

Details

Supply Chain Management: An International Journal, vol. 26 no. 2
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 8 June 2022

Minseok Park and Nitya Prasad Singh

As organizations globalize, they are facing twin challenges of (1) how to develop actionable intelligence from the vast amount of data flowing into their organization and…

Abstract

Purpose

As organizations globalize, they are facing twin challenges of (1) how to develop actionable intelligence from the vast amount of data flowing into their organization and (2) how to effectively manage the increasing risks to their supply chain. Therefore, the purpose of this paper is to bring these two issues on a single platform to understand how firms can effectively predict supply chain risk by developing and using BDA capabilities, through an automated risk alert tool.

Design/methodology/approach

The authors used a questionnaire-based survey methodology supported by secondary data to collect information related to managerial perceptions on how firms can develop a risk alert tool by improving BDA capabilities. A database of 213 senior and middle-level managers was developed and used to test the proposed hypothesis. Using econometric techniques, the authors identify the conditions necessary for such an automated risk management tool to be effective.

Findings

The results suggest that if organizations focus on developing an effective IT infrastructure supported by a strong BDA capability, they will be able to leverage these capabilities to develop an effective risk management tool. Moderating influences of Upstream and Downstream Supply Chain IT Infrastructure capabilities were also observed on different types of BDA capabilities within a firm. In conclusion, it was argued that the effectiveness of a risk alert tool is dependent on how well firms harness big data analytics capability.

Originality/value

The value of the research stems from the fact that it uses managerial surveys to identify specific BDA capabilities that can enable firms to develop risk resilience capabilities. In addition, the article is one of the few empirical studies that aims to identify how firms can use BDA capabilities within a supply chain context to develop an automated risk alert tool. The article, therefore, contributes to the literature that identifies the value of BDA capabilities within the context of supply chain risk management.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 7 September 2021

Mohamad Bahrami and Sajjad Shokouhyar

Big data analytics capability (BDAC) can affect firm performance in several ways. The purpose of this paper is to understand how BDA capabilities affect firm performance…

1185

Abstract

Purpose

Big data analytics capability (BDAC) can affect firm performance in several ways. The purpose of this paper is to understand how BDA capabilities affect firm performance through supply chain resilience in the presence of the risk management culture.

Design/methodology/approach

The study adopted a cross-sectional approach to collect survey-based responses to examine the hypotheses. 167 responses were collected and analyzed using partial least squares in SmartPLS3. The respondents were generally senior IT executives with education and experience in data and business analytics.

Findings

The results show that BDA capabilities increase supply chain resilience as a mediator by enhancing innovative capabilities and information quality, ultimately leading to improved firm performance. In addition, the relationship between supply chain resilience and firm performance is influenced by risk management culture as a moderator.

Originality/value

The present study contributes to the relevant literature by demonstrating the mediating role of supply chain resilience between the BDA capabilities relationship and firm performance. In this context, some theoretical and managerial implications are proposed and discussed.

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