An information processing perspective on supply chain risk management: Antecedents, mechanism, and consequences

Abstract

Although the extant literature recognizes that supply chain risk (SCR) information plays a fundamental and critical role in supply chain risk management (SCRM), little is known about how firms process SCR information for SCRM. Based on information processing theory, we propose an SCR information processing system comprising three components, namely risk information sharing, risk analysis and assessment, and risk sharing mechanism, to manage SCR. Drawing on the literature on organizational change, we consider three organizational, factors, namely SCRM culture diffusion, SCRM team support, and SCRM strategy alignment, being antecedents to the system. Furthermore, we examine the consequences of the system. Thus, we propose a conceptual model linking organizational antecedents, SCR information processing system, and operational performance. We collect data from 350 Chinese manufacturing firms to test the model and obtain the following findings: (1) SCRM culture diffusion and SCRM team support positively influence risk information sharing and risk analysis and assessment, while SCRM strategy alignment only positively influences risk information sharing. (2) Risk information sharing positively influences risk analysis and assessment, and in turn risk sharing mechanism; risk information sharing has a direct effect on risk sharing mechanism. (3) Risk sharing mechanism positively influences operational performance. We contribute to research and practice by offering an information processing perspective on SCRM.