The impact of global risks on supply chain performance. An empirical study on construction sector in the COVID-19 pandemic
International Journal of Quality & Reliability Management
ISSN: 0265-671X
Article publication date: 11 October 2022
Issue publication date: 23 March 2023
Abstract
Purpose
This paper aims to identify and assess global risks in the supply chain performance.
Design/methodology/approach
First, 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.
Findings
This 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/implications
These 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/value
The 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.
Keywords
Acknowledgements
This research is partly funded by the University of Economics Ho Chi Minh City, Vietnam. The authors respectfully thank Dr. Nguyen Thi Minh Thi (Former supply chain manager at Nipro Vietnam Co., Ltd. and Samsung Electronics Vietnam Co., Ltd.) for her insightful and detailed comments to complete this paper.
Citation
Pham, H.T., Truong Quang, H., Sampaio, P., Carvalho, M., Tran, D.L.A., Vo, V.X. and Duong, B.A.T. (2023), "The impact of global risks on supply chain performance. An empirical study on construction sector in the COVID-19 pandemic", International Journal of Quality & Reliability Management, Vol. 40 No. 4, pp. 1009-1035. https://doi.org/10.1108/IJQRM-03-2022-0084
Publisher
:Emerald Publishing Limited
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