Value-oriented supply chain risk management: you get what you expect

Abstract

Purpose – With the globalisation of supply chains the importance of supply chain risk management (SCRM) has grown considerably. Still, although both researchers and practitioners fully agree on its importance, most companies pay very limited attention to SCRM. The purpose of this paper is to use expectation confirmation theory to investigate the reasons for that. Design/methodology/approach – The authors use a combination of six mini case studies and a survey of 89 companies to show how a different attitude towards SCRM can lead to greater value from SCRM efforts. Findings – In line with the expectation confirmation theory the authors stipulate that the primary reason is in companies’ attitudes towards SCRM. Their main expectation is risk avoidance and not value generation. In such a case, even “successful” SCRM programmes merely confirm such an expectation (e.g. no risk materialised or with a limited impact) and the company continues to avoid risk while limiting the resources for SCRM. It is only when the expected benefit of SCRM is not solely risk avoidance but mainly value generation that increased attention can be expected over time. Research limitations/implications – The paper is exploratory in nature. Some of the stipulations in the theoretical part were not fully investigated in the quantitative part. The survey had a relatively small sample and a low-response rate. The constructs used in the survey did not use previously validated questionnaires. Practical implications – Companies should focus on changing expectations of their managers and employees regarding SCRM and emphasise the value potentially generated by SCRM. Originality/value – Use of expectation confirmation theory to investigate the reasons for limited attention to SCRM, to improve the understanding of attitude towards SCRM and to open many important areas for further research.