Reconceptualizing supply chain risk management capabilities: a theoretical framework and empirical validation

PurposeThe research on supply chain risk management (SCRM) is visibly on the rise, although its literature still lacks the state of the art that critically analyzes its content. The SCRM literature seems to require studies that utilize risk typology, sources of risk, etc. for reviewing the topic. The purpose of this paper is to bridge the gap by synthesizing the information obtained from 343 articles across 85 journals. This study also presents a critical analysis of the content of SCRM in a structured manner to identify the directions for future research.Design/methodology/approachA systematic literature review (SLR) was devised and adopted, which involved the selection, classification, and evaluation of 343 research articles published over a period of 11 years (2004-2014). The content of extant SCRM literature was critically analyzed and synthesized from the perspective of the risk management process (RMP).FindingsThe analysis of extant literature shows that there is a marked rise in research in the SCRM area, especially after the year 2005. It was observed that not only risk but also different forms of uncertainties make supply chain (SC) operations difficult to manage. The SCRM actions yielded most benefits when their implementation was at chain or network level and managed strategically. The analysis also reveals that the manufacturing sector is most affected by risks and highly investigated by researchers.Practical implicationsA complete process for SCRM based on risk stratification, objectives of risk management, and RMP will be a guiding model for firms to manage risks. The research gaps identified and future directions provided here will encourage researchers and managers to devise new methods, tools, and techniques to address the risks in modern SC operations.Originality/valueAn SLR and risk-based content classification of SCRM literature were performed. To identify, locate, select, and analyze the SCRM literature, a structured and systematic process was adopted with some very rarely used methods such as two levels of search keywords, and strings were formulated to locate the most relevant articles in major academic databases.

PurposeThe purpose of this paper is to develop a taxonomy of how companies implement Supply Chain Risk Management (SCRM) in terms of two fundamental approaches: the first emerging from internal actions and operations within companies, and the other involving inter-organizational actions undertaken with external supply chain partners. This taxonomy aims to predict firms’ performance with regard to the frequency of supply chain disruption.Design/methodology/approachA cluster analysis of survey data from 908 firms representing 69 countries together with an analysis of variance.FindingsThe authors’ analysis demonstrates a clear structure of four different patterns of how companies manage supply chain risks: passive, internal, collaborative, and integral. The authors found that firms pursuing an inter-organizational orientation (collaborative and integral) face the lowest levels of supply chain disruption. On the contrary, strategies which simply concentrate on having greater control of internal operations are not vigorous enough to stop the cascade effect of a disruption at the supply chain level. Furthermore, the excellent performance of integral SCRM strategies also suggests that collaboration between buyers and suppliers ensures the efficacy of internal business continuity plans and security procedures.Practical implicationsManagers should play an active role in making sure that supply chain management and risk management disciplines evolve together. Obviously, when an exogenous event results in a supply chain disruption, a firm will try to put its operations under control through internal capabilities. But SCRM strategies designed proactively in advance with relevant partners are even more beneficial.Originality/valueFirst, previous studies have limited the analysis of SCRM mainly to its reactive internal initiatives within a firm. This paper takes the SCRM literature beyond the internal focus by considering both internal and inter-organizational efforts and, more importantly, developing a single configurational model to analyze modes of interaction. Second, there is little empirical evidence showing the current situation of SCRM. Research in SCRM has been more qualitative than empirical, especially in global coverage. The research tackles this gap and, based on a broader scope of the samples the empirical findings show a higher level of generalizability.

ABSTRACTThis review examines supply chain risk publications across nine prestigious management, operations, and supply chain journals with respect to exploring trends and emerging topics. Using a refined set of keywords, we extract and filter the most relevant supply chain risk management (SCRM) articles from Scopus between 2001 and 2019. Unlike previous reviews of the SCRM literature, our methodology utilizes both bibliometric and cocitation analyses of publications in selective management and operations and supply chain management journals. In addition to analyzing the current state of the SCRM literature via bibliometric analysis, we delve deeply into the clusters of literature informing SCRM studies through a cocitation analysis. By conducting a text analysis on these clusters, we identify the main themes and provide insights regarding article relevance, theoretical frameworks, and methodologies for each cluster. In addition, we categorize the themes within each cluster into three main groups of matured, developing, and emerging. Based on the identified categories, we provide detailed discussions on the promising avenues for research and practice in three main areas of sustainable SCRM, behavioral SCRM, and nascent methodologies and theories in SCRM studies. Finally, we dedicate a section in our review to discussing the direction of SCRM research during and after the coronavirus disease 2019 era.

Due to the increasing occurrence of disruptive events caused by both human and also natural disasters, supply chain risk management has become an emerging research field in recent years, aiming to protect supply chains from various disruptions and deliver sustainable and long-term benefits to stakeholders across the value chain. Implementing optimum designed risk-oriented supply chain management can provide a privileged position for various businesses to extend their global reach. In addition, using a proactive supply chain risk management system, enterprises can predict their potential risk factors in their supply chains, and achieve the best early warning time, which leads to higher firms’ performance. However, relatively little is known about sustainable risks in food supply chains. In order to manage the ever-growing challenges of food supply chains effectively, a deeper insight regarding the complex food systems is required. Supply chain risk management embraces broad strategies to address, identify, evaluate, monitor, and control unpredictable risks or events with direct and indirect effect, mostly negative, on food supply chain processes. To fill this gap, in this paper we have critically discussed the related supply chain risk management literature. Finally, we propose a number of significant directions for future research.

PurposeDue to an increase in vulnerability, supply chain risk management (SCRM) has gained the attention of both researchers and practitioners. Although different approaches have been widely used to discuss the implementation of risk management, the impacts of leadership factors on SCRM have received little attention. To fill this gap in the literature, this study aims to examine whether transformational leadership and integration facilitate SCRM and enhance performance.Design/methodology/approachUsing 261 Vietnamese manufacturing companies as sample, this study applies partial least squares based structural equation modeling (SEM) to test the proposed hypotheses.FindingsThis study demonstrates three contributions for exist leadership and supply chain literature. First, the characteristics of transformational leadership effectively facilitate the internal and external integration in supply chain with higher responsiveness, visibility and integration. Second, transformational leadership has indirectly effect to supply chain risk management practice (SCRMP) throughout supply chain integration (SCI). Additionally, three dimensions of integration enable SCRM and partially mediate the relationship between transformational leadership and SCRM. Furthermore, SCRM not only plays a partially mediating role in the relationship between internal integration, customer integration and supply chain performance but also fully mediates the relationship between supplier integration and supply chain performance.Practical implicationsThis study addresses that the paper extends the content of the relationship between transformational leadership and SCI by three integration dimensions among of exist literature. Transformational leadership should be literarily included into part of leadership strategy on SCRMPs since it is shown to have an indirectly positive improvement effect on SCRM. In addition, the paper is targeted the supply chain downstream performance (SCDP) with integration and risk management with the concept of considering downstream performance is a key section to confront the external stakeholder and customers, Finally, the authors emphasized companies should be aware of the importance about how to include transformational leadership, SCI and SCRMP into its supply chain management.Originality/valueThis study contributes to the SCRM literature by empirically examining the effect of transformational leadership and SCI on SCRM and performance in Vietnam, which is few and far better than that of developed countries.

The supply chain risk management literature highlights the importance of ex‐ante identification and assessment of risks to ensure continuity of firms, in particular, and the high performance of supply chains in which they operate, in general. Supply chain disruptions are harmful and costly for firms. The risk of such disruptions can be particularly consequential for firms in emerging industries that lack resources and for which dominant organizational and supply chain designs do not yet exist. Within local and regional food supply chains, food hubs are nascent enterprises coordinating these supply chains. Building off the existing supply chain risk management literature, this study identifies and assesses the perceived supply chain risks faced by U.S. food hubs. The study employs an exploratory sequential mixed methods research design and the Failure Mode and Effect Analysis methodology for this purpose. The results show risks related to imbalances in food supply and demand, logistical delays, human resources, and infrastructure capacity limitations were perceived to be the highest priority supply chain risks for the U.S. food hubs before the COVID‐19 pandemic. The study further provides insights on association between food hub characteristics and risk, as well as association between risk preferences and risk perceptions of food hub managers [EconLit Citations: L29 Other (Firm Supply Chain Risk Management)].

Managing risks in supply chains has emerged as an important issue in supply chain management. This research area has become familiar as supply chain risk management (SCRM). There are numerous approaches and techniques that are proposed in SCRM literature, but little in concrete and systematic approach for SCRM. In this paper, a SCRM framework comprising of different techniques and specialized procedures is proposed that can assist supply chain decision makers to risk identification, assessment and management. The combined approach consists of including the following. (1) Failure mode, effects, and criticality analysis to identify risk. (2) design of experiment to design risks mitigation and action scenarios. (3) Discrete event simulation to assess risks mitigation action scenario. (4) analytic hierarchy process to evaluate risk management scenarios. (5) desirability function approach to minimize the risk. The proposed approach is illustrated through a real hospital pharmaceutical supply chain case study.

This research explores the influence of supply chain risk management and social sustainability on supply chain integration and performance in multinational companies in the era of globalization. The study aims to understand how risk management practices and social sustainability can affect various aspects of supply chain integration, including supplier integration, customer integration, and internal integration, as well as their impact on overall supply chain performance. Using a quantitative approach with Partial Least Squares Structural Equation Modeling (PLS-SEM), data were collected from 301 respondents working in various multinational companies in Indonesia. The results of the study indicate that supply chain risk management has a significant positive influence on supplier integration, customer integration, and internal integration. Additionally, social sustainability is shown to strengthen the relationship between risk management and both customer integration and internal integration, although it does not strengthen the relationship between risk management and supplier integration. Internal integration is found to have a significant positive impact on supplier integration but not on customer integration. Furthermore, supplier integration and internal integration each have a positive impact on supply chain performance, whereas customer integration does not show a significant impact. This research also highlights the importance of social sustainability in strengthening the relationship between risk management and supply chain integration, as well as its implications for corporate strategies in enhancing supply chain performance amid the challenges of globalization. This study makes an important contribution to the supply chain management literature by emphasizing the strategic role of risk management and social sustainability in strengthening supply chain integration and improving the supply chain performance of multinational companies. The practical implication of this research is that companies need to effectively integrate risk management with social sustainability practices to achieve optimal supply chain performance.

Background Supply chain risk management is crucial for the consumer products industry due to its vulnerability to uncertainties and risks. This study investigates the relationship between supply chain risks and performance among SMEs in the ASEAN countries. Supply chain performance, defined as meeting end-customer demands, involves ensuring commodity availability, on-time deliveries, and maintaining sufficient inventory and capacity across organizational boundaries from raw materials to the final consumer. Methods The study utilized a sample of 385 entrepreneurs from the consumer products industry in ASEAN countries. The research was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to establish the correlation between supply chain performance and risks. Factors related to the ASEAN Economic Community (AEC) for economic integration and regional trade agreements were incorporated to understand the diverse economic development, infrastructure, and regulatory environments across nations. Results The analysis revealed a strong correlation between supply chain risks and performance. Entrepreneurs in the consumer products industry should collaborate closely with governmental organizations to address the unique challenges posed by regulatory landscapes, cross-border logistics, and geopolitical risks within the ASEAN region. Adapting to cultural nuances and market variations, along with optimizing logistics and infrastructure, are crucial for successful supply chain risk management. Conclusions Effective supply chain risk management significantly enhances the performance of the consumer products industry’s supply chain. Entrepreneurs in this sector should align their strategies with regional and national governments to proactively address issues and mitigate risks. Continuous monitoring and adaptive measures are necessary to handle emerging risks in the dynamic market landscape. The study provides valuable insights for policymakers, suggesting that supportive frameworks and policies are necessary to bolster SME capabilities in risk management. By fostering a collaborative environment between the public and private sectors, ASEAN countries can enhance overall supply chain resilience. Future research could explore sector-specific risk management practices and their impact on supply chain robustness, underscoring the imperative for SMEs to adopt proactive and integrated risk management approaches to thrive in a complex and evolving economic environment.

Services are increasing in importance in international business and understanding the characteristics of services in the supply chain context can provide crucial information for enabling efficient and effective implementation of risk management. Service literature has in general suggested that the distinctive nature of services—in contrast to products—can be connected to the so-called IHIP attributes (intangibility, heterogeneity, inseparability of production and consumption, and perishability). In this study, we utilize these attributes in the task of identifying the distinctive features and dynamics of service supply chains in a risk management context. The study provides an important, yet sparsely addressed, viewpoint of the supply chain risk management literature by illustrating the special characteristics of services in this context. We develop a conceptual framework and a set of propositions to highlight our arguments. The findings of the study suggest that service supply chain risk management requires special attention in terms of the IHIP attributes, which include issues the traditional supply chain risk management tools can easily miss. The presented viewpoint is a novel one and provides a new perspective to supply chain risk management theory by linking the service theories to supply chain risk management.

Within the broader supply chain risk management research, supply chain disruptions have become a topic of interest for academic researchers in the last decade. This interest has been motivated by real world events which have caused major disruptions around the world in global supply chains for many major companies. Given the actual events that have occurred, there is an obvious interest on the part of supply chain practitioners as well. This paper will analyse the literature on supply chain disruptions for the past ten years to develop a clearer understanding of supply chain risk. By analysing the literature, this paper will organise the main concepts according to common themes appearing in the supply chain risk management literature.

This study is to find ways to manage the supply chain in a crisis situation where the supply chain is cut off or collapsed due to the increase in supply chain complexity and infectious diseases such as COVID-19. To this end, it has been expanded to include supply chain risk management in the existing supply chain competence perspective(three elements). In detail, the supply chain capability (agility and robustness) that can evaluate the level of supply chain risk management was proposed as a lagging factor of supply chain competence, and supply chain capability was proposed as a leading factor in supply chain performance and supply chain risk management performance. As a result of the analysis, supply chain competence had a significant positive effect on supply chain capability, and supply chain capability had a significant positive impact on supply chain performance as well as supply chain risk management performance. This study suggested the need to develop supply chain competence to manage supply chain risks. In addition, it is significant in that it confirmed that supply chain risk management can improve not only performance in crisis situations, but also overall performance of the supply chain.

PurposeThis paper aims to identify and assess global risks in the supply chain performance.Design/methodology/approachFirst, global risks are identified and classified according to three criteria: content, probability and context. A set of supply chain performance indicators are then defined by the theory of resource-based view and balanced scorecard. Structural equation modeling is adopted to access risks in the global supply chain.FindingsThis article contributes to the supply chain risk management literature by providing a detailed operationalization of global supply chain risk constructs, e.g. natural disasters, war and terrorism, fire accidents, economic and political instability, social and cultural grievances, decease. Empirical results reveal that the supply chain is predominantly regarded as being vulnerable as the proposed model of risks can explain up to 12.6% variance of supplier performance, 25.2% innovation and learning, 23% internal business, 40.6% customer service and 32.4% finance.Research limitations/implicationsThese risks are relevant contextual variables in strategic supply chain decisions. Supply chain managers should keep in mind acceptable cost/benefit tradeoffs in their firms' mitigation efforts associated with major contingency risks. This research advocates the allocation of scarce resources to adopt the supply chain strategies of avoidance, speculative and postponement.Originality/valueThe application of the strategic content/process/context to explain global supply chain performance is an interesting approach. Moreover, globalization trends and the COVID-19 perspectives are considered to be the main reasons for increasing such complex factors. Data on validating research models collected during the COVID-19 pandemic reflect the topicality of this study.

Although recently there has been great interest in supply chain risk management (SCRM), little is known about in the field of risk management why some supply chains perform well, whereas others do not. For this reason, this study focuses on variables that can improve SCRM performance. Collaborative risk mitigation strategies, namely, risk information sharing, decision synchronization, goal congruence, resource sharing, and collaborative communication have been rarely theoretically analyzed in relation to SCRM performance by considering the moderating effect on relational risk in the field of SCRM literature. Therefore, to enhance information processing theory (IPT), the purpose of this study is to investigate the effect of collaborative risk mitigation strategies on SCRM performance with considering the effect of relational risk. This study develops a conceptual model encapsulating interrelationships between collaborative risk mitigation strategies and SCRM. By using IPT, this paper investigates how collaborative risk mitigation strategies can influence SCRM performance by considering the moderator effect of relational risk. Findings of this study propose that (1) collaborative risk mitigation strategies are positively related to SCRM performance (2) relational risk moderates the relationships between collaborative risk mitigation strategies and SCRM performance. This paper renders contribution to SCRM literature by presenting a model of interrelationships among collaborative risk mitigation strategies and SCRM performance.

As agropreneurs of fresh fruits and vegetables are important contributors to the economy, supply chain risk management is vital for their survival and growth. Therefore, this study examined the mediating effect of supply chain risk management in reducing the impact of supply chain risks and increasing supply chain performance among small scale agropreneurs in Malaysia. It also evaluated the moderating role that knowledge management plays between supply chain risks and supply chain risk management. SmartPLS 3.0 (PLS-SEM), which uses partial least squares structural equation modelling, was utilised to test the framework. Data from 430 fresh fruit and vegetable agropreneurs in the five most productive Malaysian states were collected using a questionnaire. The results confirmed (1) a negative correlation between supply chain risks and supply chain performance (2) that supply chain risk management mediates the relationship between supply chain risks and supply chain performance, and (3) that knowledge management moderates the relationship between supply chain risks and supply chain performance. Therefore, these findings could help government institutes and agropreneurs associations better appreciate the value of supply chain risk management due to its positive effect on the overall performance of agropreneurships.