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Article
Publication date: 9 November 2015

Woojung Chang, Alexander E. Ellinger and Jennifer Blackhurst

As global supply networks proliferate, the strategic significance of supply chain risk management (SCRM) – defined as the identification, evaluation, and management of supply chain

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Abstract

Purpose

As global supply networks proliferate, the strategic significance of supply chain risk management (SCRM) – defined as the identification, evaluation, and management of supply chain-related risks to reduce overall supply chain vulnerability – also increases. Yet, despite consistent evidence that firm performance is enhanced by appropriate fit between strategy and context, extant SCRM research focusses more on identifying sources of supply chain risk, types of SCRM strategy, and performance implications associated with SCRM than on the relative efficacy of alternative primary supply chain risk mitigation strategies in different risk contexts. Drawing on contingency theory, a conceptual framework is proposed that aligns well-established aspects of SCRM to present a rubric for matching primary alternative supply chain risk mitigation strategies (redundancy and flexibility) with particular risk contexts (severity and probability of risk occurrence). The paper aims to discuss these issues.

Design/methodology/approach

Conceptual paper.

Findings

The proposed framework addresses supply chain managers’ need for a basic rubric to help them choose and implement risk mitigation approaches. The framework may also prove helpful for introducing business students to the fundamentals of SCRM.

Originality/value

The framework and associated research propositions provide a theoretically grounded basis for managing the firm’s portfolio of potential supply chain risks by applying appropriate primary risk mitigation strategies based on the specific context of each risk rather than taking a “one size fits all” approach to risk mitigation. An agenda for progressing research on contingency-based approaches to SCRM is also presented.

Details

The International Journal of Logistics Management, vol. 26 no. 3
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 9 January 2017

Rofyanto Kurniawan, Suhaiza Hanim Zailani, Mohammad Iranmanesh and Premkumar Rajagopal

The vulnerability issue in supply chains is among the most pressing concerns that firms are currently facing. As a preliminary attempt to address the lack of empirical research…

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Abstract

Purpose

The vulnerability issue in supply chains is among the most pressing concerns that firms are currently facing. As a preliminary attempt to address the lack of empirical research, this paper aims to primarily explore the relationship between vulnerability mitigation strategies and supply chain effectiveness with security culture as a moderator.

Design/methodology/approach

Data are gathered via a survey of 209 Indonesian manufacturing firms. The data are analyzed using partial least squares technique.

Findings

Results indicate that supply chain visibility, supply chain flexibility and supplier development strategies positively affect supply chain effectiveness. Moreover, risk culture positively moderates the effects of supply chain visibility and supplier development on supply chain effectiveness.

Practical implications

The findings may improve supply chain effectiveness by mitigating the effects of vulnerability causes.

Originality/value

This study contributes to the advancement of knowledge on the relationships between vulnerability mitigation strategies and supply chain effectiveness.

Details

Supply Chain Management: An International Journal, vol. 22 no. 1
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 9 June 2021

Udukumburage Shalinda Kusal De Silva, Ananna Paul, Kazi Wahadul Hasan, Sanjoy Kumar Paul, Syed Mithun Ali and Ripon Kumar Chakrabortty

Managing supply chain risk is a crucial element in ensuring the long-term sustainability of any organization or industry. As such, identification of risks and deploying their…

Abstract

Purpose

Managing supply chain risk is a crucial element in ensuring the long-term sustainability of any organization or industry. As such, identification of risks and deploying their mitigation strategies should be the focal point to sustain in the long run. The risks that are faced by food processing supply chains are gaining prominence, given more consumers requiring higher quality products while ensuring traceability. In essence, this research focuses on the supply chain risks and mitigation strategies in the spice industry of an emerging economy, Sri Lanka.

Design/methodology/approach

This paper integrates two popular multi-criteria decision-making (MCDM) techniques, such as the analytical hierarchy process (AHP) and Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) to assess the supply chain risks and to derive their mitigation strategies for the spice industry.

Findings

Findings show that “inability to meet quality requirements” has been established as the most significant risk in the Sri Lankan spice industry. On the other hand, “vertical integration” (backward integration) has been discovered as the key mitigation strategy to ameliorate the effects of supply chain risks in this sector.

Research limitations/implications

This study is exploratory, and more empirical data and statistical analyses are needed to further validate the outcomes of the study.

Originality/value

Despite being one of the largest trade exporters in Sri Lanka, the spice industry gets scant attention to the identification and mitigation of the risks. The authors explored the supply chain risks in the spice industry and then prioritized the suitable mitigation strategies using an integrated AHP-TOPSIS method.

Details

International Journal of Emerging Markets, vol. 18 no. 5
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 3 April 2020

Yesim Can Saglam, Sibel Yildiz Çankaya and Bulent Sezen

In spite of its potential benefits in a wide range of situations, supply chain risk mitigation strategies have received scant attention on the subject of managing the supply chain

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Abstract

Purpose

In spite of its potential benefits in a wide range of situations, supply chain risk mitigation strategies have received scant attention on the subject of managing the supply chain risk in the business environment. Especially, there is still a limited understanding of the importance of firms’ supply chain flexibility, resilience and responsiveness in the supply chain risk management (SCRM) literature. This research focuses on exploring the relationship between significant proactive risk mitigation strategies, namely supply chain (SC) flexibility, resilience and responsiveness, as well as SCRM performance to facilitate bridging the gap between mitigation strategies and SCRM performance. The moderating role of risk management (RM) culture was also hypothesized and tested.

Design/methodology/approach

A survey-based methodology is adopted. The data are analyzed using the technique of partial least squares.

Findings

The results indicate that SC resilience and responsiveness are positively associated with SCRM performance; however, SC flexibility does not. In addition, interestingly, RM culture does not moderate these relationships in spite of the extant literature. We argue that this could be due to the fact that risk management culture is at the beginning stage for an enterprise in Turkey.

Originality/value

This study extends the existing literature by advancing the knowledge on the relationship between proactive risk management strategies, which applied to overcome uncertainties and SCRM performance.

Details

Journal of Manufacturing Technology Management, vol. 32 no. 6
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 6 February 2017

Surya Prakash, Gunjan Soni, Ajay Pal Singh Rathore and Shubhender Singh

The purpose of this paper is to present a methodology to analyze the risks present in perishable food supply chain and to determine the most effective risk mitigation strategies…

4965

Abstract

Purpose

The purpose of this paper is to present a methodology to analyze the risks present in perishable food supply chain and to determine the most effective risk mitigation strategies. It is achieved by understanding the dynamics between various risks in perishable food supply chain and modeling them using interpretive structural modeling (ISM).

Design/methodology/approach

Four categories and 17 types of risk are established from literature and conducting brainstorming sessions with managers/engineers in Indian dairy firms. A methodology is proposed using ISM, risk priority number and risk mitigation number to prioritize risk mitigation strategy decisions for the dairy industry.

Findings

For a perishable food supply chain, risk positioned at lower levels (levels 1 or 2) in the hierarchy should be targeted first, while formulating mitigation strategies. To investigate further, risk- enabling factors which are identified for an Indian dairy firm for these levels 1 and 2 risks and mitigation strategy prioritization show that supplier side risks are more dominant followed by market risks and process risks.

Research limitations/implications

This proposed methodology has not been statistically validated or empirically tested, and factors taken are in the Indian context, but the authors believe that the study is highly relevant to other markets as well because the ISM-based analysis is for generic perishable food supply chain environment.

Practical implications

This study provides a useful approach to managers/decision makers to identify, analyze and prioritize risk in the supply chain. It also provides insights into the mutual relationships of supply chain risks which would help them to focus on the effective risk mitigation strategies formulation. The study provides the insights to benchmark and risk management in the dairy industry environment with priority considerations.

Originality/value

This paper provides an integrated approach to identifying, quantify, analyze, evaluate and mitigate the risks of perishable food (in the dairy environment) in the Indian context.

Details

Benchmarking: An International Journal, vol. 24 no. 1
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 8 September 2020

P. Raghuram, Perumalla Sandeep, V. Raja Sreedharan and Tarik Saikouk

A huge number of events can affect the operations of a long and complicated supply chain. This paper deals with the development of a supply chain risk mitigation index (SCRMI…

Abstract

Purpose

A huge number of events can affect the operations of a long and complicated supply chain. This paper deals with the development of a supply chain risk mitigation index (SCRMI) based on a risk mitigation maturity framework. A comprehensive list of supply chain risks has been ascertained and segregated into risks faced at various supply chain echelons through a detailed literature review.

Design/methodology/approach

This paper is based on an extensive literature review and questionnaire to identify risks. order of magnitude analytic hierarchy process (OM-AHP) was used as the methodology to assess the prioritization of supply chain risks under two clusters, viz., Probability and severity leading to risk were tested in a distillery.

Findings

SCRMI was determined and used to categorize their maturity level in facing supply chain risks. Thus, organization can focus on improvements for their specific needs.

Research limitations/implications

The model was tested in the distillery industry. It should be tested in other contexts with other methods to provide generalizability.

Practical implications

This research provides direction to managers for choosing risk mitigation strategies based on the global supply chain environment. SCRMI can be a performance metric for the supply chain managers.

Originality/value

The manufacturer's readiness to take action in the face of disruptions in the supply chain is a critical challenge in today's complex business environment and SCRMI framework is instrumental in such business environment.

Article
Publication date: 27 January 2012

Daniel Kern, Roger Moser, Evi Hartmann and Marco Moder

The purpose of this paper is to develop a model for upstream supply chain risk management linking risk identification, risk assessment and risk mitigation to risk performance and…

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Abstract

Purpose

The purpose of this paper is to develop a model for upstream supply chain risk management linking risk identification, risk assessment and risk mitigation to risk performance and validate the model empirically. The effect of a continuous improvement process on identification, assessment, and mitigation is also included in the model.

Design/methodology/approach

A literature review is undertaken to derive the hypotheses and operationalize the included constructs. The paper then tests the path analytical model using partial least squares analyses on survey data from 162 large and mid‐sized manufacturing companies located in Germany.

Findings

All items load high on their respective constructs and the data provides robust support to all hypothesized relationships. Superior risk identification supports the subsequent risk assessment and this in turn leads to better risk mitigation. The model explains 46 percent of the variance observed in risk performance.

Research limitations/implications

This study empirically validates the sequential effect of the three risk management steps on risk performance as well as the influence of continuous improvement activities. Limitations of this study can be seen in the use of perceptional data from single informants and the focus on manufacturing firms in a single country.

Practical implications

The detailed operationalization of the constructs sheds further light on the problem of measuring risk management efforts. Clear evidence of the performance effect of risk management provides managers with a business case to invest in such initiatives.

Originality/value

This is one of the first large‐scale, empirical studies on the process dimensions of upstream supply chain risk management.

Details

International Journal of Physical Distribution & Logistics Management, vol. 42 no. 1
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 6 May 2014

David E. Cantor, Jennifer Blackhurst, Mengyang Pan and Mike Crum

The purpose of this paper is to contribute to the supply chain risk management literature by examining how stakeholders place pressure on the firm to engage in risk management…

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Abstract

Purpose

The purpose of this paper is to contribute to the supply chain risk management literature by examining how stakeholders place pressure on the firm to engage in risk management activities.

Design/methodology/approach

This paper utilizes a survey approach to test the nomological model. The analysis was carried out using structural equation modeling techniques.

Findings

The results demonstrate that stakeholders place pressure on the firm to mitigate risk and that knowledge management (KM) and joint planning activities with suppliers serve as mediating roles in the model. The process-oriented model reveals that these factors influence the firm's ability to be responsive to customer demand.

Originality/value

The research represents one of the first papers to empirically test how stakeholder theory and KM contributes to risk mitigation activities. Additionally, the paper shows the impact of KM factors on risk mitigation activities. The paper attempts to explain from both a theoretical and empirical perspective how and why firms are engaging in risk mitigation activities and how the impacts demand responsiveness.

Details

The International Journal of Logistics Management, vol. 25 no. 1
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 7 March 2023

Moh'd Anwer Al-Shboul and Mohammad A.K. Alsmairat

This study aims to contribute to the supply chain management (SCM) literature differently. It offers insightful information about the main enablers that affect supply chain

Abstract

Purpose

This study aims to contribute to the supply chain management (SCM) literature differently. It offers insightful information about the main enablers that affect supply chain efficacy (SCE). Therefore, this study examines the significant roles and the relationships between SC absorptive capacity, SC risk mitigation, supply chain agility (SCA) and supply chain integration (SCI) among manufacturing firms (MFs) in the Middle East region.

Design/methodology/approach

This paper performed a quantitative survey-based study to analyze the substantial roles of SC absorptive capacity, SC risk mitigation, SCA and SCI on SCE. Thus, the authors conducted an online survey through 260 MFs that are listed in the Chamber of the industries of Jordan, Egypt and Turkey that only responded by email. The main respondents were chief executive managers, operations managers, managers and logistics employees from both mid and top levels. The conceptual model was tested by using a hypothesis-testing deductive approach. The findings are based on covariance-based analysis and structural equation modeling (SEM) using partial least squares (PLS)-SEM software.

Findings

The PLS-SEM clearly shows a significant relationship between SC absorptive capacity, SCA and SCI on SCE, while surprisingly still, SC risk mitigation does not significantly affect SCE. Further, the outcomes of this study indicate that there is a significant effect of SCA as a mediating factor in the relationship between SC absorptive capacity and SCE directly and indirectly, as well as a moderating effect of SCI in the relation, whereas there is a nonsignificant effect by SC risk mitigation. Finally, there is a significant effect of SCI in the relationship between SC absorptive capacity and SC risk mitigation on SCE as a moderating factor.

Originality/value

This study introduces a theoretical insight and empirically presents that both SCA and SCI are proper logistics characteristics for mediating and moderating the impact of SC absorptive capacity on SCE. Such findings of this study can provide insightful implications for managers at different levels in MFs, stakeholders and policymakers regarding the importance of using the three mentioned enablers on SCE in MFs, in the Middle East firms, in particular, and in developing countries, in general.

Details

Supply Chain Management: An International Journal, vol. 28 no. 5
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 25 May 2023

Mohammad A.K. Alsmairat and Moh'd Anwer AL-Shboul

This study tries to examine how supply chain (SC) absorptive capacity (AC), SC ambidexterity, SC risk mitigation and supply chain agility (SCA) affect SC efficacy (SCE) in…

Abstract

Purpose

This study tries to examine how supply chain (SC) absorptive capacity (AC), SC ambidexterity, SC risk mitigation and supply chain agility (SCA) affect SC efficacy (SCE) in manufacturing firms (MFs) in the Middle East region.

Design/methodology/approach

Using a quantitative approach through a survey-based study, 1,004 questionnaires were distributed to the MFs that are listed in the chambers of the industries of Jordan, Egypt, Saudi Arabia and Bahrain in the Middle East region, with 239 useable and valid responses retrieved for analysis, representing a 23.8% response rate. The main respondents were chief executive managers, operations managers, managers and logistics managers from both mid and top levels. The conceptual model was tested by using a hypothesis-testing deductive approach. The findings are based on covariance-based analysis and structural equation modeling (SEM) using partial least squares-SEM (PLS-SEM) software.

Findings

This study illustrates a significant relationship between SC AC, SC ambidexterity, SC risk mitigation and SCA on SCE. Further, the findings indicate that there is a significant effect of SC risk mitigation as a mediating factor in the relationship between SC AC, and SC ambidexterity on SCE directly and indirectly, as well through a moderating effect of SCA in these relations. Finally, there is a significant direct and indirect effect of SCA in the relationship between SC AC and SC ambidexterity on SCE as a moderating factor.

Originality/value

This study presents theoretical and empirical insights that both SC risk mitigation and SCA are proper logistics features for mediating and moderating extends the literature by adding a positive role of SC AC and SC ambidextrousness in mitigating SC risks. However, this study adds up the SC literature by evidencing moderating role of SCA between the absorptive capacities, ambidexterity on SCE. Such findings of this study can provide insightful implications for managers and practitioners at different levels in and efficacy among MFs (MFs, stakeholders and policymakers regarding the importance of using the three mentioned enablers on SCE) in MFs, particularly in the Middle Eastern firms and in developing countries in general East region.

Details

Journal of Manufacturing Technology Management, vol. 34 no. 6
Type: Research Article
ISSN: 1741-038X

Keywords

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