An examination of the effect of supply chain disruption risk drivers on organizational performance: evidence from Chinese supply chains
ISSN: 1359-8546
Article publication date: 22 January 2021
Issue publication date: 3 May 2021
Abstract
Purpose
This paper aims to examine the relationship of supply chain disruption risk drivers to supply chain performance and firm performance outcomes.
Design/methodology/approach
Four disruption risk drivers for a supply chain are identified, namely, demand disruption risk, supply disruption risk, process disruption risk and environment disruption risk. A cross-sectional survey was developed and data was collected from 315 Chinese firms to determine the relationship of supply chain disruption risks to supply chain performance and firm performance.
Findings
The empirical findings show that supply disruption risks and process disruption risks have a significant impact on supply chain performance. In addition, this paper shows that supply disruptions, demand disruptions and process disruptions are significantly related to firm performance. This paper shows that supply chain disruption risks have different effects on supply chain performance and firm performance. Managers should be aware that disruption risk drivers can have an impact on firm performance that is different from their impact on supply chain performance. An important finding of the study is that the magnitude of the impact of disruption risks on supply chain performance is greater on the upstream side of the supply chain than on the downstream side of the supply chain.
Originality/value
This is one of the early studies to examine the effect of supply chain disruption risk drivers on both firm performance and supply chain performance. An important finding of the study is that the magnitude of the impact of disruption risks on supply chain performance is greater on the upstream side of the supply chain than on the downstream side of the supply chain.
Keywords
Acknowledgements
This research is based on work supported by the National Science Foundation (NSF) under Grant number 1238878. The author(s) would like to especially thank the British Council for awarding the project “Education Partnership for Promoting High Value Manufacturing Supply Chain Systems (EPPHVMSCS)” under the scheme UK-China-BRI Countries Education Partnership Initiative.
Citation
Parast, M.M. and Subramanian, N. (2021), "An examination of the effect of supply chain disruption risk drivers on organizational performance: evidence from Chinese supply chains", Supply Chain Management, Vol. 26 No. 4, pp. 548-562. https://doi.org/10.1108/SCM-07-2020-0313
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited