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Article
Publication date: 22 February 2018

Hong Long Chen

Researchers have long sought to understand how risks in supply chains (SCs) affect firm performance. Yet, they have not fully subjected claims of how SC risks affect firm…

2820

Abstract

Purpose

Researchers have long sought to understand how risks in supply chains (SCs) affect firm performance. Yet, they have not fully subjected claims of how SC risks affect firm financial performance to theoretical and empirical scrutiny. The purpose of this paper is to investigate the links between SC risks and firm financial performance.

Design/methodology/approach

The author analyzes how SC risks affect firm financial performance from the perspective of marginal financial performance (MFP) using survey and financial statement data. The author employs structural equation modeling to examine the hypotheses using 106 Taiwanese listed companies across 20 industries.

Findings

The findings regarding the importance of industry-specific risk, organizational risk, internal business process risk, and demand risk are consistent with prior studies. The author finds that demand risk has an MFP of −0.20, the highest negative effect among the risk variables. The findings also show that industry-specific risk possesses an MFP of −0.16, the second-highest negative effect, despite having no direct effect on financial performance.

Research limitations/implications

This paper examines how SC risks affect MFP via combining survey and financial statement data. It does not assume the reported MFP estimates apply to all businesses in other countries. However, future research could triangulate our findings.

Originality/value

This study combines survey and financial data to analyze how SC risks affect firm financial performance. Specifically, it provides a methodology for estimating quantitative cause-effect relationships between SC risk and firm financial performance, an important topic that receives less research interest in the field of supply chain management.

Details

International Journal of Operations & Production Management, vol. 38 no. 3
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 25 October 2017

Bo Yan, Zhuo Chen and Hanwen Kang

The purpose of this paper is to identify the risk factors that affect aquatic product quality in the “farming-supermarket docking” condition. This paper investigates how the…

1183

Abstract

Purpose

The purpose of this paper is to identify the risk factors that affect aquatic product quality in the “farming-supermarket docking” condition. This paper investigates how the investment scale can affect earnings and aquatic product quality assurance level. Also, it aims to determine an effective method for increasing aquatic product assurance level, coordinate the supply chain and improve management of the entire supply chain.

Design/methodology/approach

The authors construct a coordination model for quality risk control of the aquatic supply chain by simulating the model in a tilapia supply chain using the case study method. They applied Karush–Kuhn–Tucker conditions to analyze upstream enterprises (breeding base) and downstream enterprises (corresponding supermarket) under the conditions of sufficient or insufficient funds, Further, they consider the relationships among revenue, optimum quality assurance and investment scale at different capital positions; discuss the best cooperation conditions in four cases; and draw conclusions on ways to control quality risk.

Findings

The proposed coordination model is found to be effective in controlling aquatic product quality risk. The simulation results show that when the enterprise funds are sufficient, the sales prices, product freshness, quality assurance ability, collaboration and quality test ability have a positive influence on quality assurance level, whereas coefficient and price sensitivity have a negative influence on it. Additionally, it can obtain high-quality assurance levels and earnings in both breeding bases and supermarkets under the condition of adequate investment.

Originality/value

The study built a coordination model combined with the characteristics of the aquatic supply chain by adding the quality penalty mechanism, product freshness parameters and cost function in the “farming-supermarket docking” mode into the traditional principal–agent model. Research results are beneficial to enhancing the quality assurance level of the aquatic supply chain and improving the coordination level of the supply chain.

Details

Supply Chain Management: An International Journal, vol. 22 no. 5
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 29 December 2023

An Thi Binh Duong, Uyen My Diep, Paulo Sampaio, Maria Carvalho, Hai Thanh Pham, Thu-Hang Hoang, Dung Quang Truong and Huy Quang Truong

This research aims to specialise in the investigation of risk management for service-oriented manufacturing supply chains via two stages, highlighting its differences from…

Abstract

Purpose

This research aims to specialise in the investigation of risk management for service-oriented manufacturing supply chains via two stages, highlighting its differences from manufacturing. The research article is commenced by executing an encyclopedic review of earlier research to ascertain the distinctive traits of service-oriented manufacturing supply chains and identify prevalent risks. Secondly, an empirical study in the construction field, amongst the industry hardest struck in the mist of the COVID-19 epidemic, is conducted to thoroughly inspect the resonant effect of these risks on service-oriented manufacturing supply chain performance.

Design/methodology/approach

In this study, to validate the resonant effect mechanism, a thorough assessment is undertaken by juxtaposing theoretical model to a newly constructed comparative model that encompasses the single effects of risks on supply chain performance.

Findings

63% variance of service-oriented manufacturing supply chain performance was showcased by the resonant effect model, compared with 46.3% in the comparative model. Moreover, each risk exerts a more glaringly significant impact on supply chain performance, asserting the mechanism of the resonant influence. Another noteworthy result involves the demand risk possessing a low effect on supply chain performance, thus emphasising the superiority of service-oriented manufacturing supply chains.

Research limitations/implications

Future research endeavours should hinge on the optimal “resonant” model explosion, thereby foreseeing and alleviating worst-case scenarios to guarantee the robustness and resilience of supply chain networks.

Practical implications

Indubitably, reducing the intensity of the resonant effect revolves around lowering the coefficient of “a,” thereby restricting/eliminating the link among risks. Therefore, the suggested resonant impact model might thus serve as “a road map”. In light of the aforementioned considerations, it is advisable that supply chain executives employ supply chain management tactics namely avoidance, prediction, and postponement, but only after meticulous consideration the costs and benefits of adopting such strategies.

Originality/value

The service-oriented manufacturing supply chain features and advantages have been analysed and explained throughout the article. The data gathered during the COVID-19 pandemic is a captivating and topical point of this paper.

Details

Journal of Enterprise Information Management, vol. 37 no. 1
Type: Research Article
ISSN: 1741-0398

Keywords

Article
Publication date: 4 July 2016

Irene Kilubi

The purpose of this paper is to analyse the intellectual structure and research fronts of discipline of supply chain risk management (SCRM), in order to identify the knowledge…

1544

Abstract

Purpose

The purpose of this paper is to analyse the intellectual structure and research fronts of discipline of supply chain risk management (SCRM), in order to identify the knowledge groups in the research area to date, as well as to reveal any relationships between these subfields and the central influential trends.

Design/methodology/approach

By means of a bibliometric study, the 32 most co-cited articles on SCRM published in 16 top business-related academic journals are analysed using multivariate statistical techniques, i.e. multi-dimensional scaling, cluster analysis and correspondence factor analysis.

Findings

The results demonstrate a clearly identifiable structure as a result of the performed co-citation analysis. The conducted cluster analysis and factor bring forward that the research field is arranged in five different areas of interest: explaining supply chain (SC) risk phenomena, concepts, frameworks and insights of SCRM; modelling risks for SCs; inventory risks affecting supply efficiency; SC and product design methods; and SC risk mitigating strategies.

Originality/value

Overall, the intellectual structure of SCRM is first examined through a bibliometric approach using quantitative techniques – for improved understanding of its origins, and to identify the state of the science – and to offer suggestions for future studies that could cover current gaps. This study represents the potential to advance the SCRM literature landscape.

Details

Business Process Management Journal, vol. 22 no. 4
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 27 January 2023

Hai Thanh Pham, Raffaele Testorelli and Chiara Verbano

This study aims to empirically investigate the impact of operational risk (i.e. supply, manufacturing and demand risks) on supply chain performance and the moderating role of…

Abstract

Purpose

This study aims to empirically investigate the impact of operational risk (i.e. supply, manufacturing and demand risks) on supply chain performance and the moderating role of integration (i.e. supplier, internal and customer integrations) in mitigating the impact of these risks, respectively.

Design/methodology/approach

A research framework of hypotheses is tested by structural equation modeling with data collected from the fourth round of the high-performance manufacturing project.

Findings

It is revealed that manufacturing and demand risks negatively impact operational performance, and more importantly, internal and customer integrations help to reduce the impact of these two risks. Additionally, the effects of both supply risk and supplier integration are only significant for large firms.

Practical implications

Supply chain managers need to appropriately develop the levels of integration to mitigate the adverse impact of operational risk.

Originality/value

Operational performance is always threatened by different types of risk that adversely affect the supply, production and demand sides of manufacturing firms. Despite this fact, large-scale data-based empirical research on the impact of operational risk on the performance of supply chains has been scarce. This study aims to fill this literature gap.

Details

Baltic Journal of Management, vol. 18 no. 2
Type: Research Article
ISSN: 1746-5265

Keywords

Article
Publication date: 6 October 2020

Attique ur Rehman, Muhammad Shakeel Sadiq Jajja, Raja Usman Khalid and Stefan Seuring

Base-of-the-pyramid (BoP) markets are frequently characterized by institutional voids. However, it remains unclear how institutional voids impact corporate and supply chain risk…

1391

Abstract

Purpose

Base-of-the-pyramid (BoP) markets are frequently characterized by institutional voids. However, it remains unclear how institutional voids impact corporate and supply chain risk and performance. This intersection will be analyzed in this paper.

Design/methodology/approach

This paper presents a systematic literature review of 94 BoP papers published between 2004 and 2019 in peer-reviewed, English-language journals available on Scopus. Drawing upon established frameworks for examining institutional voids, supply chain risks and BoP performance, frequency, and contingency analyses are conducted. Contingencies are established to provide insights into the associations between different constructs from the selected frameworks.

Findings

Supply chain risks are pervasive in the BoP discourse, especially when BoP markets are characterized by institutional voids. The frequency analysis of the constructs suggests that the key supply chain risks discussed in the BoP literature include social risk, credit risk, product market and operating uncertainties, knowledge and skill biases and decision-maker risks due to bounded rationality. The contingency analysis suggests that institutional voids are associated with supply chain risks that affect performance.

Research limitations/implications

A theoretical framework aligning three research streams in the context of BoP calls for future studies to test the causality of highlighted constructs that are significantly associated. The analysis is confined to the constructs that are taken into account based on specific conceptual frameworks.

Practical implications

The study provides practitioners with a framework to manage supply chain risks in BoP-related firms to enhance firm performance. Managers can use key dimensions of supply chain risk, such as the product market, the input market and operating uncertainties, to evaluate performance in the BoP context.

Originality/value

Specifically, this research has strengthened the inquiry of supply chain risks in the presence of institutional voids that may have an impact on firm performance

Details

The International Journal of Logistics Management, vol. 31 no. 4
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 12 March 2021

Liukai Wang, Ji Yan, Xiaohong Chen and Qifa Xu

The purpose of this study is to bridge the gap in the literature on supply chain finance (SCF) by exploring the relationship between network capabilities and corporate financial…

1287

Abstract

Purpose

The purpose of this study is to bridge the gap in the literature on supply chain finance (SCF) by exploring the relationship between network capabilities and corporate financial performance (CFP) in financial supply chains (FSCs).

Design/methodology/approach

The authors collect panel data and adopt regression analysis to analyse the joint investment activities among 1359 manufacturing firms and 289 financial service providers in China to explore how network capabilities, both network power and network centrality, improve CFP in the FSCs.

Findings

Under the FSCs environments, network centrality (i.e. eigenvector centrality, closeness centrality and betweenness centrality) raises CFP (ROA, ROE and Tobin's Q) and network power (node degree, clustering coefficient) also improves CFP. However, node strength from the network power stream has a negative effect on Tobin's Q, indicating that when the partner of a firm has an extremely strong influence in FSCs; this weakens the bargaining ability and flexibility of the focal firm, thus reducing its long-term financial performance.

Practical implications

The joint investment activities among supply chain partners and financial service providers help managers understand the advanced financing solutions generated by internal and external network organisations as well as be aware of network capabilities' impact on CFP in FSCs.

Originality/value

This study answers the call for more empirical research on SCF to provide a broader sample to examine financial supply chain management. This is one of the earliest studies to shed light on a new perspective – how network capabilities improve CFP in the FSCs.

Details

International Journal of Operations & Production Management, vol. 41 no. 4
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 24 December 2020

Aswin Alora and Mukesh Kumar Barua

Supply chain disruptions can have severe negative consequences on companies. However, studies measuring the financial impacts of supply chain disruptions are largely confined to…

1153

Abstract

Purpose

Supply chain disruptions can have severe negative consequences on companies. However, studies measuring the financial impacts of supply chain disruptions are largely confined to developed nations and large companies. Therefore, this study aims to analyze the impact of supply chain disruption on small companies in the context of an emerging nation. Further, an attempt has been made to classify supply chain disruptions and measure its impact by its type.

Design/methodology/approach

In this research, the event study on 335 supply chain disruption events for a 10 year period starting from 2009 to 2019 has been used.

Findings

The results state that the Indian small and medium companies lost −4.49% of shareholder wealth in disruption. The findings also indicate that the financial and environmental disruptions can have severe effect on shareholder wealth as compared to other category.

Research limitations/implications

The study is confined to a developing country. Considering multiple countries can provide comparative results and therefore a global consensus could be achieved.

Practical implications

The outcomes of the results help managers to plan and prioritize supply chain disruptions, regulatory authorities can plug any possible insider trading practices for small companies in the event of supply chain disruptions. Investors can plan and take prudent investing decisions based on the nature of the disruptions.

Originality/value

To the best of the knowledge, this is the first study measuring the supply chain disruption effects on smaller companies in an emerging nation. The study is also novel in incorporating financial disruptions and measuring source wise impact on shareholder wealth.

Article
Publication date: 31 December 2020

Aswin Alora and Mukesh K. Barua

The purpose of this paper is to identify, classify and prioritize supply chain risks faced by Indian micro small and medium manufacturing companies and to develop a comprehensive…

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Abstract

Purpose

The purpose of this paper is to identify, classify and prioritize supply chain risks faced by Indian micro small and medium manufacturing companies and to develop a comprehensive supply chain risk index.

Design/methodology/approach

Primary data has been collected from 354 Indian micro small and medium enterprises on the different supply chain risks faced by them. An extensive literature review followed by expert's interview has been carried out in order to finalize the supply chain risks. A hybrid methodology consists of AHP and Fuzzy TOPSIS is applied for the data analysis. A sensitivity analysis has been done to check the robustness and consistency of the results.

Findings

Results depict the importance of supply side and financial side risks faced by manufacturing supply chains, thus adding to the ongoing academic debate on the importance of supply chain finance solutions.

Research limitations/implications

Study is limited to the scope of an emerging market. Generalization of results needs more systematic studies around the world in different supply chains.

Practical implications

Supply chain managers can consider the benchmark framed in this study in order to identify the health of their supply chain and to efficiently employ supply chain risk management strategies.

Originality/value

The current study is novel in developing a supply chain risk index using a hybrid AHP-Fuzzy TOPSIS methodology with a comprehensive list of 26 supply chain risks under 5 categories for an MSME supply chain. To the best of the authors’ knowledge, this is the first study incorporating financial risks in the development of a supply chain risk index.

Details

International Journal of Productivity and Performance Management, vol. 71 no. 2
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 2 December 2019

Abhijeet Ghadge, Maximilian Weiß, Nigel D. Caldwell and Richard Wilding

In spite of growing research interest in cyber security, inter-firm based cyber risk studies are rare. Therefore, this study aims to investigate cyber risk management in supply

6987

Abstract

Purpose

In spite of growing research interest in cyber security, inter-firm based cyber risk studies are rare. Therefore, this study aims to investigate cyber risk management in supply chain contexts.

Design/methodology/approach

Adapting a systematic literature review process, papers from interdisciplinary areas published between 1990 and 2017 were selected. Different typologies, developed for conducting descriptive and thematic analysis, were established using data mining techniques to conduct a comprehensive, replicable and transparent review.

Findings

The review identifies multiple future research directions for cyber security/resilience in supply chains. A conceptual model is developed, which indicates a strong link between information technology, organisational and supply chain security systems. The human/behavioural elements within cyber security risk are found to be critical; however, behavioural risks have attracted less attention because of a perceived bias towards technical (data, application and network) risks. There is a need for raising risk awareness, standardised policies, collaborative strategies and empirical models for creating supply chain cyber-resilience.

Research limitations/implications

Different types of cyber risks and their points of penetration, propagation levels, consequences and mitigation measures are identified. The conceptual model developed in this study drives an agenda for future research on supply chain cyber security/resilience.

Practical implications

A multi-perspective, systematic study provides a holistic guide for practitioners in understanding cyber-physical systems. The cyber risk challenges and the mitigation strategies identified support supply chain managers in making informed decisions.

Originality/value

To the best of the authors’ knowledge, this is the first systematic literature review on managing cyber risks in supply chains. The review defines supply chain cyber risk and develops a conceptual model for supply chain cyber security systems and an agenda for future studies.

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