Abstract
Risk management has emerged as a field of operations management research due to the greater exposure of organizations to internal and external risks, as a result of globalization, outsourcing, reduction in the number of suppliers, and the need to improve cost and inventory management. Although this subject has received attention in recent years, the relationship between analytical orientation and supply chain risk management is little explored. Thus, this research verifies the impact of analytical orientation over supply chain risk management. A questionnaire was applied with micro, small and medium-sized firms of Brazilian Southeast region, obtaining 111 responses. The structural equation modeling was used for analysis and the main conclusions indicate that analytical orientation has a strong and significant impact over supply chain risk management. In this sense, those supply chains that are more analytical manage their risks better, resulting in lower perception of uncertainty.
Highlights
In today’s turbulent and uncertain environment, every company in the supply chain is susceptible to an endless number of events that can disrupt or interrupt its operations (Pettit, Fiksel, & Croxton, 2010; Ponomarov & Holcomb, 2009; Scavarda, Ceryno, Pires, & Klingebiel, 2015; Sheffi & Rice Jr., 2005; Skipper & Hanna, 2009)
The literature explores several factors as drivers of risk management efficiency, such as visibility, collaboration and flexibility (Kilubi & Haasis, 2015; Lavastre, Gunasekaran, & Spalanzani, 2012; Li, Fan, Lee, & Cheng, 2015; Nooraie & Parast, 2015; Tang, Matsukawa, & Nakashima, 2012; Tang & Musa, 2011; Thun & Hoenig, 2011; Wiengarten, Humphreys, Gimenez, & McIvor, 2016; Zhao, Huo, Sun, & Zhao, 2013), the impact of the chains’ ability to collect, analyze and transform data into useful knowledge, in order to make decisions based on facts and data, that is, to be analytically oriented, is a point not yet explored in the literature when it comes to the use of this analytical capabilities to optimize risk management results
The results indicate that supply chains that perceive less uncertainty have higher average of both analytical orientation and risk management, comparing with those with high perception of uncertainty
Summary
In today’s turbulent and uncertain environment, every company in the supply chain is susceptible to an endless number of events that can disrupt or interrupt its operations (Pettit, Fiksel, & Croxton, 2010; Ponomarov & Holcomb, 2009; Scavarda, Ceryno, Pires, & Klingebiel, 2015; Sheffi & Rice Jr., 2005; Skipper & Hanna, 2009). Some examples are: “and if” (Hallikas et al, 2004; Lavastre et al, 2012; Tummala & Schoenherr, 2011); risk diagrams (Hallikas et al, 2004; Lavastre et al, 2012); cause and effect analyzes (Tummala & Schoenherr, 2011); mapping processes (Lavastre, Gunasekaran, & Spalanzani, 2012) In this way, it is understood that in order to identify, evaluate, propose mitigation strategies and monitor risks efficiently, in addition to collaboration, flexibility, and visibility, supply chains are required to develop analytical orientation. H3: Supply chains with higher level of risk management have lower perception of environmental uncertainty than those with lower level of risk management
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