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Due to the warming at the automotive market in the last years and consequently the growth of vehicle production has been moved and placed emphasis on the segment. In recent years, some have known, for example, as the earthquake that struck Japan in 2011 was able to disrupt the suppliers of the country. Due to these events, supply chain risk management has become essential to the supply chain operations success. The purpose of this paper is to evaluate the supplier’s systematic selection at the automotive industry compared with the identified models in the literature.

A case study applied at the automotive to propose a method for selecting suppliers considering the risk management.

These results indicate that the organization has established criteria for suppliers selection, this systematic aims to identify the potential risks in the supply chain before the supplier award the project but it’s also the current practice can be improved using as reference the comparative method as applied in this study.

The risk management, a few discussed topic but on the rise among researches, show that the companies, especially those inserted in the automotive segment has been used different techniques for selecting suppliers to focus in a better supply chain control. Establish criteria for selecting suppliers means identifying in advanced the potential risks that the suppliers may offer to the organization during the supply to avoid any interruptions to supply.

The paper attempts to establish a two‐dimension frame to analyze dynamic supplier risks of large‐scale and complex equipment and study the probability distribution of the occurring risks.

Starting from the dynamic and correlated supplier risks of large‐scale and complex equipment, a two‐dimension frame to analyze these risks is established. A maximum entropy model is also built to research the probability distribution of the risks; then, K‐T conditions are proved to solve the model. A real case is also studied in the last part of the paper.

The results are convincing: in order to analyze the supplier risk dynamically of large‐scale and complex equipment development project, a two‐dimension analysis frame is established and a maximum entropy model is worked out. The case study shows that they are valuable.

The two‐dimension frame gives a new viewpoint for risk management, but also the maximum entropy model supplies a valuable method for risk management.

The paper succeeds in creating a dynamic analysis frame to study risks and building a new method to research the disciplines of the dynamic risks.

This study examines the impact of inter-organisational justice (i.e. distributive, procedural and interactional) in the buyer–supplier relationship on supply risk and, in turn, on a firm’s marketing and financial performance.

A structured survey was administered both online and in-person to Jordan-based manufacturing companies. The 137 responses received were analysed using partial least structural equation modelling.

The study found that while establishing both procedural and interactional justice in the relationship has a negative impact on supply risk, promoting distributive justice, surprisingly, has no impact. Moreover, supply risk was found to be detrimental to the firm’s marketing and financial performance.

This study considers only the direct role of inter-organisational justice in reducing supply risk. Future research could enhance our understanding of this role by exploring the underlying mechanisms and conditions that could govern it.

Managers can alleviate supply risk by ensuring procedural and interactional justice in the relationship through involving suppliers in the decision-making processes, consistently adhering to established procedures and communicating transparent and ample information.

Addressing supply risk can help in maintaining community resilience and economic stability.

The study highlights inter-organisational justice as a new approach to mitigating supply risk. Moreover, by examining how supply risk can affect a firm’s marketing performance, it also highlights a new implication of supply risk. Furthermore, by exclusively examining the impact of supply risk on a firm’s financial performance, the study provides a more nuanced interpretation of the effect of supply risk and how it can be reduced.

Digital transformation misalignment refers to disparities in digital transformation levels between suppliers and buyers across the production and operation process. It has negatively affected supply chain stability. However, the existing research concerning the economic consequences has not been adequately addressed. Therefore, this paper aims to investigate whether such digital transformation misalignment increases supplier financial risk and to identify the factors influencing this relationship.

This paper examines binary combinations of suppliers and buyers listed on China’s A-share market between 2011 and 2021. This group constitutes a sample to empirically test the influence of digital transformation misalignment on the supplier’s financial risk, as well as the moderating effect of the geographical and organizational distances.

The paper’s findings demonstrate that digital transformation misalignment has indeed a significant increase in the supplier’s financial risk. Moreover, the impact is more intense when the geographical or organizational distance between the supplier and the buyer is relatively large.

The existing literature rarely explores the potential risks arising from digital transformation misalignment between supply chain partners. Therefore, this paper fills a notable gap as it is the first to study the impact of digital transformation misalignment on the supplier’s financial risk and the specific applied mechanisms. The contribution significantly improves the field of corporate digital transformation, particularly, within the context of supply chain management.

Buying firms are increasingly exposed to sustainability risk arising from negative conditions or potential events in their supply base that might provoke adverse stakeholder reactions. Procurement managers at these firms can pursue multiple strategies to address this risk with suppliers, including acceptance, monitoring-based mitigation, avoidance and collaboration-based mitigation. This study aims to investigate how perceived risk, supplier dependence and financial slack resources contribute to the strategic preferences of these managers.

A vignette-based experiment with procurement managers is used to examine the factors affecting the managers’ strategic preferences in managing supplier sustainability risk.

The empirical results revealed that the procurement managers’ preference for avoidance or collaboration strategies was stronger when they perceived higher risk, but their preference varied based on the degree of supplier dependence. Specifically, when they perceived a high level of risk, procurement managers were more inclined toward a monitoring strategy with dependent suppliers and preferred an avoidance strategy when they dealt with independent ones. Financial slack was also an influential factor: managers with more slack at their disposal preferred to collaborate with suppliers to address the risk; on the other hand, limited slack shifted their preference toward an acceptance strategy, regardless of the level of risk.

This study helps to develop a more nuanced picture of how procurement managers make challenging and complex trade-offs when responding to supplier sustainability risk.

Many modern firms strive to become sustainable. To this end, they are required to improve not only their own environmental and social performance but also the performance of their suppliers. Building on population ecology theory, we explore how buyers' exposure to supplier sustainability risk and their subsequent risk management strategies at the buyer–supplier dyad level can lead to adherence to sustainability by the supplier populations.

We rely on a bottom-up research design, in which the actions of buyers within buyer–supplier dyads lead to population-wide changes on the supplier side. Specifically, we use experimental data on managing sustainability risk to build an agent-based simulation model and assess the effect of evolutionary processes on the presence of sustainable/unsustainable business practices in the supplier population.

Our findings suggest that buyers' cumulative actions in managing sustainability risk do not necessarily result in effective population-wide improvements (i.e. at a high rate and to a high degree). For example, in high risk impact conditions, the buyer population is usually able to decrease the population level risk in a long run, but they would need both power and resources for quickly achieving such improved outcomes. Importantly, this positive change, in most cases, is due to the fact that the buyer population selects out the suppliers with high probability of misconduct (i.e. decreased supplier population density).

Drawing on the organizational population ecology theory, we explore when, to what degree and how quickly the buyers' cumulative efforts can lead to population-wide changes in the level of supplier sustainability risk, as well as the composition and density of supplier population. Methodologically, this paper is one of the first studies which use a combination of experimental data and agent-based modeling to offer more valuable insights on supply networks.

In the era of market turbulence, sourcing specialists consistently face challenges to keep the availability of the material efficiently and effectively without any disruption. Sourcing strategies and planning have a huge impact on procurement performance. The purpose of this paper is to examine the relationships among different sourcing strategies and supply risk management and performance and additionally, the role of procurement practices in different strategic settings.

This is empirical research that collected data gathered from 223 procurement specialists working in various manufacturing firms through a structured questionnaire. Valid data is then analyzed through the structure equation modeling technique for hypotheses testing.

The findings of this study reveal that supplier development is a partial complementary mediator between multiple supplier strategy and supply-side risk management. While in a volatile business environment, strategic supplier strategy has a significant negative impact on supply-side risk management, and in this case supplier development acts as a competing partial mediator between the two. Contract management has resulted in an important mechanism to be deployed in a strategic sourcing strategy. It is also shown that supplier risk management is also associated with improved supply management performance.

This paper establishes an explanation of theoretical and practical understanding of sourcing strategies and empirically shows that supplier development is the appropriate mechanism to deal with supply-side risk management, which in turn positively impacts on supplier management performance.

This study contributes to supply chain risk management literature, especially in the context of strategic risk management and explains how a strategic decision can impact supply risk management. This provides a piece of empirical evidence regarding the use of well-established procurement practices to improve supply performance.

In the buyer-supplier relationship of a high-technology enterprise, the concepts of trust and risk are closely intertwined. Entering into a buyer-supplier relationship inherently involves a degree of risk, since there is always an opportunity for one of the parties to act opportunistically. Purchasing and supply managers play an important role in reducing the firm's risk profile, and must make decisions about whether or not to enter into, or remain in, a relationship with a supplier based on a subjective assessment of trust and risk.

In this paper, the authors seek to explore how trust in the buyer-supplier relationship can be quantitatively modeled in the presence of risk. The authors develop a model of trust between a buyer and supplier as a risk-based decision, in which a buyer decides to place trust in a supplier, who may either act cooperatively or opportunistically. The authors use a case study of intellectual property (IP) piracy in the electronics industry to illustrate the conceptual discussion and model development.

The authors produce a generalizable model that can be used to aid in decision-making and risk analysis for potential supply-chain partnerships, and is both a theoretical and practical innovation. However, the model can benefit a variety of high-technology enterprises.

While the topic of trust is widely discussed, few studies have attempted to derive a quantitative model to support trust-based decision making. This paper advanced the field of supply chain management by developing a model which relates risk and trust in the buyer-supplier relationship.

The purpose of this paper is to systematically review, synthesize and critically evaluate the current research status on the role of collaborative interorganizational relationships (CIRs) in supply chain risks (SCRs) from a social capital perspective and provide an organizing lens for future scholarship in this area.

This study adopts a systematic literature review approach to investigate 126 articles from 27 peer-reviewed journals between 1995 and 2020.

This paper investigates supply chain CIRs using a social capital perspective to explain the role of structural, relational and cognitive capital that resides in these relationships in various SCRs (i.e. environmental, supply, manufacturing, demand, information, financial and transportation). The review reveals that the three social capital dimensions uniquely and both positively and negatively affect different SCRs. The findings further suggest that the perceived SCRs can influence the structural and relational capital.

This study calls for practitioners to consider the cognitive alignment with their supply network partners, their relational investments, as well as the interorganizational processes and systems in managing and alleviating SCRs.

This review offers a theoretical articulation of how various aspects of CIRs affect SCRs. Specifically, this study extends the existing understanding of the role of social capital in SCRs through offering a synthesis of dominant findings and discourses, and avenues for future research.

As organizations increase their dependence on supply chain networks, they become more susceptible to their suppliers’ disaster risk profiles, as well as other categories of risk associated with supply chains. Therefore, it is imperative that supply chain network participants are capable of assessing the disaster risks associated with their supplier base. The purpose of this paper is to assess the supplier disaster risks, which are a key element of external risk in supply chains.

The study participants are 15 automotive casting suppliers who display a significant degree of disaster risks to a major US automotive company. Bayesian networks are used as a methodology for examining the supplier disaster risk profiles for these participants.

The results of this study show that Bayesian networks can be effectively used to assist managers in making decisions regarding current and prospective suppliers vis-à-vis their potential revenue impact as illustrated through their corresponding disaster risk profiles.

A limitation to the use of Bayesian networks for modeling disaster risk profiles is the proper identification of risk events and risk categories that can impact a supply chain.

The methodology used in this study can be adopted by managers to assist them in making decisions regarding current or prospective suppliers vis-à-vis their corresponding disaster risk profiles.

As part of a comprehensive supplier risk management program, organizations along with their suppliers can develop specific strategies and tactics to minimize the effects of supply chain disaster risk events.