Woojung Chang, Alexander E. Ellinger and Jennifer Blackhurst
As global supply networks proliferate, the strategic significance of supply chain risk management (SCRM) – defined as the identification, evaluation, and management of supply…
Abstract
Purpose
As global supply networks proliferate, the strategic significance of supply chain risk management (SCRM) – defined as the identification, evaluation, and management of supply chain-related risks to reduce overall supply chain vulnerability – also increases. Yet, despite consistent evidence that firm performance is enhanced by appropriate fit between strategy and context, extant SCRM research focusses more on identifying sources of supply chain risk, types of SCRM strategy, and performance implications associated with SCRM than on the relative efficacy of alternative primary supply chain risk mitigation strategies in different risk contexts. Drawing on contingency theory, a conceptual framework is proposed that aligns well-established aspects of SCRM to present a rubric for matching primary alternative supply chain risk mitigation strategies (redundancy and flexibility) with particular risk contexts (severity and probability of risk occurrence). The paper aims to discuss these issues.
Design/methodology/approach
Conceptual paper.
Findings
The proposed framework addresses supply chain managers’ need for a basic rubric to help them choose and implement risk mitigation approaches. The framework may also prove helpful for introducing business students to the fundamentals of SCRM.
Originality/value
The framework and associated research propositions provide a theoretically grounded basis for managing the firm’s portfolio of potential supply chain risks by applying appropriate primary risk mitigation strategies based on the specific context of each risk rather than taking a “one size fits all” approach to risk mitigation. An agenda for progressing research on contingency-based approaches to SCRM is also presented.
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Socio-economic, health and environmental turbulences experienced during the past decades have caused major value chain disruptions, triggering multinational enterprises (MNEs) to…
Abstract
Socio-economic, health and environmental turbulences experienced during the past decades have caused major value chain disruptions, triggering multinational enterprises (MNEs) to rethink the footprints of their global operations and redesign for resilience. These developments have fueled a rapidly expanding scholarly literature on resilience. Yet, its conceptual understanding and practical utility remain highly fragmented, cross-disciplinarily disconnected and ambiguous. This study explores the intellectual structure of resilience research in business and management, relying on a systematic literature review approach based on bibliometric techniques and content analysis. A unique database consisting of 545 peer-reviewed articles published in 65 leading Academic Journal Guide (AJG) journals are analyzed. Based on the findings, three leading research communities dominate the resilience discussion in business and management. Moreover, the intellectual structure of the field through the most productive authors and top cited journal articles is discussed. Based on the results, five potential research avenues are suggested.
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Jasmine Siu Lee Lam and Jing Dai
Supply chain security has been recognized as an important part of managing business risks. The purpose of this paper is to propose a methodology with systematic metrics for…
Abstract
Purpose
Supply chain security has been recognized as an important part of managing business risks. The purpose of this paper is to propose a methodology with systematic metrics for logistics service providers (LSPs) to develop their security design to meet customer demands.
Design/methodology/approach
The study is based on a three-stage process of desk research, content validation test, and in-depth case study. The study demonstrates an integrated analytical approach which combines analytical network process (ANP) with quality function deployment (QFD), and then applies the approach to an international LSP.
Findings
A case study of an international LSP shows how the ANP-QFD approach can be deployed to understand customers’ expectation for security and develop tactics and measures with the aim to achieve the desirable outcome for LSPs’ security design.
Originality/value
The paper contributes to supply chain security literature and practice. This study is among the research taking the first step to use ANP-QFD to translate the customer requirements (CRs) for supply chain security into systematic metrics for LSPs to develop their security design. Results from such research into the development of security performance can benefit LSPs in terms of increasing the effectiveness and improving the customer orientation of security efforts. By extension, other firms can enhance their security design by referring to the case study and the integrated analytical method. The flexibility of this ANP-QFD approach offers leeway for firms to change the CRs and design requirements based on their unique circumstances.
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David E. Cantor, Jennifer Blackhurst, Mengyang Pan and Mike Crum
The purpose of this paper is to contribute to the supply chain risk management literature by examining how stakeholders place pressure on the firm to engage in risk management…
Abstract
Purpose
The purpose of this paper is to contribute to the supply chain risk management literature by examining how stakeholders place pressure on the firm to engage in risk management activities.
Design/methodology/approach
This paper utilizes a survey approach to test the nomological model. The analysis was carried out using structural equation modeling techniques.
Findings
The results demonstrate that stakeholders place pressure on the firm to mitigate risk and that knowledge management (KM) and joint planning activities with suppliers serve as mediating roles in the model. The process-oriented model reveals that these factors influence the firm's ability to be responsive to customer demand.
Originality/value
The research represents one of the first papers to empirically test how stakeholder theory and KM contributes to risk mitigation activities. Additionally, the paper shows the impact of KM factors on risk mitigation activities. The paper attempts to explain from both a theoretical and empirical perspective how and why firms are engaging in risk mitigation activities and how the impacts demand responsiveness.
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Jennifer V. Blackhurst, Kevin P. Scheibe and Danny J. Johnson
This research aims to develop a supplier risk assessment methodology for measuring, tracking, and analyzing supplier and part specific risk over time for an automotive…
Abstract
Purpose
This research aims to develop a supplier risk assessment methodology for measuring, tracking, and analyzing supplier and part specific risk over time for an automotive manufacturer.
Design/methodology/approach
Supply chain risk literature is analyzed and used in conjunction with interviews from the automotive manufacturer to identify risks in the supply base. These risks are incorporated into the development of a temporal risk assessment and monitoring system.
Findings
A framework of risk factors important to the auto manufacturer is presented. A multi‐criteria scoring procedure is developed to calculate part and supplier risk indices. These indices are used in the development of a risk assessment and monitoring system that allows the indices to be tracked over time to identify trends towards higher risk levels.
Research limitations/implications
There are a number of operational issues identified in the paper that could be investigated in future research. One such issue is the development of alternative risk assessment methods that would increase the sensitivity of the risk analysis.
Practical implications
The framework is implementable in firms interested in understanding and controlling risk in their supply base. The research stems from an industry project with an automotive manufacturer. The method is designed to be practical and easy to implement and maintain. The system also has a visual reporting mechanism designed to provide early warning signals for potential problems in the supply base and to show temporal changes in risk.
Originality/value
This paper presents a dynamic risk analysis methodology that analyzes and monitors supplier risk levels over time.
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Suhaiza Hanim Zailani, Karthigesu Seva Subaramaniam, Mohammad Iranmanesh and Mohd Rizaimy Shaharudin
The security issue in supply chains is among the most pressing concerns that firms are currently facing. As a preliminary attempt to address this lack of empirical research, the…
Abstract
Purpose
The security issue in supply chains is among the most pressing concerns that firms are currently facing. As a preliminary attempt to address this lack of empirical research, the primary purpose of this paper is to explore the relationship between security practices and the security operational performance with respect to security culture as a moderator.
Design/methodology/approach
With the resource-based view of the firm as the theoretical underpinning, the study utilizes survey data to test the propositions derived from the security literature and partial least squares for the analysis.
Findings
The research reveals four crucial practices of supply chain security that collectively affect a firm’s security operational performance among Malaysian service providers. It is also interesting to observe that security culture positively moderates the relationship between facility management and the security operational performance of the firm.
Research limitations/implications
Firms in emerging countries need to realize that supply chain security practices can result in significant benefits to their firms that can give them additional incentives to adopt these initiatives. This study may also help policymakers in emerging countries, in general, in setting appropriate policies and strategies, and Malaysia, in particular, for ensuring that it is a secure location for exporting cargo and giving assurance to the local and international investors to continue their investment.
Practical implications
This study will assist supply chain managers and logisticians to re-examine their existing supply chain security model by considering the selected supply chain security practices, which have a significant impact on supply chain security operational performance. Individual firms need to strategize their business model with the inclusion of security aspects, which will surely create a competitive advantage over other players in the logistics industry. Firms can develop the best appropriate supply chain security model that will benefit the firm, customers, and business partners, such as suppliers and local authorities.
Originality/value
The study highlights is the important role of the supply chain security practices to deliver high quality of service in terms of supply chain security operational performance in emerging countries. In addition, it offers an empirical analysis of the moderating role of security culture on the relationship between supply chain security practices and security operational performance.
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Hsin-Li Chang and Jinn-Guang Wu
The purpose of this paper is to develop a method to measure the difficulties of items required to achieve Authorized Economic Operator (AEO) validation and investigated companies’…
Abstract
Purpose
The purpose of this paper is to develop a method to measure the difficulties of items required to achieve Authorized Economic Operator (AEO) validation and investigated companies’ abilities to obtain AEO certification based on an empirical analysis of 201 supply chain-related companies in Taiwan.
Design/methodology/approach
The Rasch model was applied to convert the ordinal raw data collected from questionnaire surveys into values on an interval scale to measure companies’ abilities and item difficulties for AEO validation. The model was estimated using WINSTEP, which is an iterative computer program.
Findings
The study results show that self-risk assessment and the formulation of security policies are the most difficult items to accomplish for AEO validation, whereas establishing security facilities is the easiest task to accomplish. Additionally, a company’s ability to obtain AEO validation was found to be positively correlated with a company’s turnover volume and its number of staff.
Research limitations/implications
This research focusses on supply chain-related companies in Taiwan. Thus, the findings may not be transferable directly to other companies, circumstances, or countries.
Practical implications
Using the Rasch analysis, both company’s abilities and item difficulties could be measured numerically and compared meaningfully. The study results could be used as references for the government to create polices to guide companies to meet the requirements of AEO validation in the future.
Social implications
According to the study results, only 43.28 percent of the respondent companies have sufficient confidence to completely comply with all 26 security items for AEO validation; this implies that AEO validation criteria should be adjusted or some programs should be provided by the government to improve companies’ abilities for AEO validation, if the government genuinely wants to effectively encourage companies to obtain AEO certification.
Originality/value
This study introduced a method to estimate items’ difficulties and companies’ abilities for AEO validation with values on a consistent interval scale. Thus, a comparison between companies’ abilities and items’ difficulties could be graphically illustrated. The results of this study provide a useful tool to investigate whether the AEO validation criteria are appropriate for the potential companies that can apply for AEO validation.
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Manojkumar Vithalrao Dalvi and Ravi Kant
The purpose of this paper is to examine the role of supplier development activities (SDAs) in the context of three major performance outcomes (POs), i.e. supplier performance…
Abstract
Purpose
The purpose of this paper is to examine the role of supplier development activities (SDAs) in the context of three major performance outcomes (POs), i.e. supplier performance improvement (SPI), buyer’s competitive advantage improvement (BCAI) and buyer-supplier relationship improvement (BSRI).
Design/methodology/approach
A survey was conducted of 214 manufacturing organizations and the data were analyzed using factor analysis, correlation analysis and multiple hierarchical regression analysis.
Findings
This paper categorizes the identified 28 SDAs and 33 POs into five and three major categories of SDAs and POs, respectively. The results indicate a significant relationship between each aspect of SDAs and POs, except investment. The effect of each category of SDA is determined through a developed framework.
Research limitations/implications
This present study analyzes the SDAs and POs from the buyer’s point of view. A paired buyer and supplier data may provide some additional information about the relationship between SDAs and POs.
Practical implications
The outcome of this study will provide significant information for managers and academicians who are involved in outsourcing.
Originality/value
For the first time, the relationship and effect of each category of SDAs was analyzed in combination with three major POs, i.e. SPI, BSRI and BCAI.