Abstract
Although research on risk management (RM) in small- and medium-sized enterprises (SMEs) in general and regarding supply chains (SCs) has increased recently, our understanding is still rather fragmented and underdeveloped. This refers particularly to new types of risks such as dynamic crises or emerging risks associated with digital transformation (DT). Therefore, the purpose of this exploratory paper is to investigate RM in SMEs in SCs. More precisely, the aim is to identify patterns that can be used to group SMEs according to their risk behavior (i.e., risk attitude and perception). Drawing from a data set of 181 European SMEs, this paper empirically conceptualizes a typology of SMEs. The typology consists of four distinct types of SMEs that emerged from a cluster analysis: collective risk eliminators, collective playing it safe seekers, collective risk-ignoring knights of fortune, and collective neglecting imperturbable ones. The findings indicate that different risk behavior leads to different degrees of collaboration within the SC. Furthermore, the close interconnection between RM as found in the different clusters and the respective firm’s innovation performance can be shown. By acknowledging the heterogeneity found in SMEs, this paper breaks away from mainstream research that tends to consider SMEs as a homogeneous entity.
Highlights
External crises, such as the COVID-19 pandemic, have a widespread impact on companies and their supply chains (SCs) and call for an even stronger emphasis on systematic risk management (RM) approaches [1]
Due to digitalization and the resulting digital SC [11], risk behavior, respectively RM within small- and medium-sized enterprises (SMEs) needs to be investigated more closely because newly emerging digitalization risks especially focusing on cybersecurity or intellectual capital have not been examined in detail yet [4,12]
2, 51 SMEs for cluster 3, and 13 SMEs for cluster 4. This was based on the following items: the frequency of crisis, the level of risk impact, risk assessment, risks as opportunities, risks as threats, risks are difficult to control, risks can be minimized by involving SC partners, risks are costs, group risk elimination with SC partners, risk sharing with SC partners, risk insurance, self-eliminate risk, risk transfer to SC partner, ignore risk, innovation performance compared to competitors, number of employees, and annual turnover
Summary
External crises, such as the COVID-19 pandemic, have a widespread impact on companies and their supply chains (SCs) and call for an even stronger emphasis on systematic risk management (RM) approaches [1]. For small- and medium-sized enterprises (SMEs) involved in SCs, RM is even more urgent, as their risk exposure increases within the SC [2,3]. Dynamic crises such as (cyber)wars and sanctions or the COVID-19 pandemic act as accelerators for both digital transformation (DT) and the emergence of new types of risks [4–6]. As SMEs are very heterogenous, a different behavior (attitude and perception) towards (SC) risks, must be expected and influences their applied (SC)RM and innovation performance. Resulting from this heterogeneity, standardized RM approaches among SMEs are uncommon [10]. Due to digitalization and the resulting digital SC [11], risk behavior, respectively RM within SMEs needs to be investigated more closely because newly emerging digitalization risks especially focusing on cybersecurity or intellectual capital have not been examined in detail yet [4,12]
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