Service-oriented supply chain: what do we know about its risks?

Abstract

ABSTRACT This study identifies the risks entailed in a service-oriented supply chain. By employing supply chain mapping, contingency, and Risk Breakdown Structure (RBS) theories to elaborate a picture of the current knowledge, we were able to summarise and categorise the various risks into three main levels of cause. Next, these literature-based risks were narrowed down into a specific industry context and were then tested and confirmed using exploratory factor and confirmatory factor analyses to form an industry-oriented RBS for the construction business. The data were collected from 195 firms who participated in a large-scale survey sponsored by the Japanese Government to promote sustainable socio-economic development for the ASEAN region. As a result, seven risk categories related to demand, supply, operations, information, finance, time (delays) and external sources (human-made or natural-related) were identified and will be a valuable reference for researchers and practitioners. Furthermore, the relationship between identified risk and supply chain performance was explored. This paper is the first to introduce the concept and characteristics of a service-oriented supply chain by using a systematic review combined with a bibliometric mapping of the literature and an empirical study to generate both generic and industry-oriented RBSs in a single study.