Understanding the impact of supply-side decisions and practices on supply risk management

2020 ◽  
Vol 27 (5) ◽  
pp. 1769-1792 ◽  
Author(s):  
Sehrish Huma ◽  
Waqar Ahmed ◽  
Arsalan Najmi
Keyword(s):  
Risk Management ◽  
Business Environment ◽  
Strategic Decision ◽  
Equation Modeling ◽  
Supply Side ◽  
Supplier Development ◽  
Supply Risk ◽  
Management Performance ◽  
Content Type ◽  
Sourcing Strategies

PurposeIn the era of market turbulence, sourcing specialists consistently face challenges to keep the availability of the material efficiently and effectively without any disruption. Sourcing strategies and planning have a huge impact on procurement performance. The purpose of this paper is to examine the relationships among different sourcing strategies and supply risk management and performance and additionally, the role of procurement practices in different strategic settings.Design/methodology/approachThis is empirical research that collected data gathered from 223 procurement specialists working in various manufacturing firms through a structured questionnaire. Valid data is then analyzed through the structure equation modeling technique for hypotheses testing.FindingsThe findings of this study reveal that supplier development is a partial complementary mediator between multiple supplier strategy and supply-side risk management. While in a volatile business environment, strategic supplier strategy has a significant negative impact on supply-side risk management, and in this case supplier development acts as a competing partial mediator between the two. Contract management has resulted in an important mechanism to be deployed in a strategic sourcing strategy. It is also shown that supplier risk management is also associated with improved supply management performance.Practical implicationsThis paper establishes an explanation of theoretical and practical understanding of sourcing strategies and empirically shows that supplier development is the appropriate mechanism to deal with supply-side risk management, which in turn positively impacts on supplier management performance.Originality/valueThis study contributes to supply chain risk management literature, especially in the context of strategic risk management and explains how a strategic decision can impact supply risk management. This provides a piece of empirical evidence regarding the use of well-established procurement practices to improve supply performance.

scholarly journals An empirical analysis of supply and manufacturing risk and business performance: a Chinese manufacturing supply chain perspective

2018 ◽  
Vol 23 (6) ◽  
pp. 461-479 ◽  
Author(s):  
Vikas Kumar ◽  
Ozlem Bak ◽  
Ruizhi Guo ◽  
Sarah Louise Shaw ◽  
Claudia Colicchia ◽  
...  
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Supply Chains ◽  
Business Performance ◽  
Business Environment ◽  
Structured Interviews ◽  
Supply Risk ◽  
Management Performance ◽  
Content Type ◽  
Manufacturing Supply Chain

Purpose This study aims to explore the importance and impact of supply and manufacturing risk management upon business performance within the context of Chinese manufacturing supply chains. Design/methodology/approach A two-phased multi-method approach was adopted, which included a survey questionnaire to practitioners in Chinese manufacturing supply chains followed by semi-structured interviews. The findings included 103 valid survey responses complemented by six semi-structured interviews. Findings The results indicate that in Chinese manufacturing context supply risk and manufacturing risk management are both vital for business performance. A high correlation between business and manufacturing risk management performance exists; however, no significant impact of supplier dependency, systematic purchasing, maturity of production and supply chain and human resources was found despite previously these elements being regarded as key influencers for supply and manufacturing risk management performance. The Chinese manufacturing supply chain indicated that elements such as the supplier and customer orientation, flexibility, manufacturing and supply risk highly connotes with business performance. Practical implications In the current unpredictable and volatile business environment, the competitiveness of manufacturing supply chains to a large extent depend on their ability to identify, assess and manage the manufacturing and supply risks. The findings of this study will assist supply chain managers in taking decision on manufacturing and supply risk management and reducing the uncertainty upon their business performance. Originality/value The supply chain risk has been widely explored within the context of individual case studies, or standalone models focusing on either supply or manufacturing risk in supply chains; however, to what extent this has been applicable to a wider context and its impact upon business process has not been explored. Hence, this study simultaneously has analysed manufacturing risk and supply risk and its impact upon Chinese manufacturing supply chains business performance. Moreover, this study uses a combination of quantitative and qualitative methods, which is often limited in this area. Finally, the institutional theory lens offers novel insights in better understanding the factors that can affect the impact of supply and manufacturing risk management upon business performance in those contexts, such as China, where the institutional aspect presents specific features.

Empirical research on the relationships between demand- and supply-side risk management practices and their impact on business performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sebastian Sturm ◽  
Nils-Ole Hohenstein ◽  
Hendrik Birkel ◽  
Gernot Kaiser ◽  
Evi Hartmann
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Business Performance ◽  
Management Practices ◽  
Equation Modeling ◽  
Supply Side ◽  
Chain Flexibility ◽  
Demand And Supply ◽  
Content Type ◽  
Supply Chain Flexibility

Purpose This paper integrates research on demand- and supply-side risk management practices to better explain how to achieve competitive advantage in dynamic business conditions. The purpose of this study is to develop a model linking supply chain flexibility, agility, robustness and resilience and to investigate its relationships and impact on business performance. Design/methodology/approach The authors conduct a review of existing literature to derive their hypotheses and operationalize the respective constructs. The formulated research model is then validated applying partial least squares structural equation modeling on survey data from 89 multi-national companies based in Europe. Findings The authors find a significant positive relationship between supply chain flexibility and supply chain agility as well as supply chain robustness and supply chain resilience, respectively. Additionally, it is argued that supply chain flexibility, agility and resilience have significant positive impact on individual dimensions of business performance. Originality/value The relationships between supply chain flexibility, agility, robustness, resilience and business performance are investigated and empirically validated altogether in a single model for the first time, providing a clear separation of these terms and shedding further light on the management of supply chain risks.

Technology adoption and company performance

2018 ◽  
Vol 22 (2) ◽  
pp. 143-161
Author(s):  
Yeong-Wha Sawng ◽  
Yongjae Park ◽  
Seok-Hong Jo ◽  
Seung-Lak Park
Keyword(s):  
Performance Index ◽  
Strategic Decision ◽  
Equation Modeling ◽  
Company Performance ◽  
Relative Importance ◽  
Smart Technology ◽  
Content Type ◽  
Internal Process ◽  
Smart Technologies ◽  
Interdisciplinary Study

Purpose The purpose of this paper is to provide useful implications for Korean export companies to adopt the smart technology to improve their performance in the era of industrial convergence with the interdisciplinary study between trade and technology management. Design/methodology/approach This study followed the five-stage procedure and methods. In the first stage, measurement items were developed in four performance factors: leaning and growth, internal process, customer and finance. In the second stage, data were collected by conducting two types of surveys: first, for Korean export companies that have adopted Radio frequency identification (RFID) to test the proposed model and analyze the performance and second, for RFID experts of industry-university R&D cooperation to measure the relative importance of factors and items. In the third stage, the model was verified with structural equation modeling. In the fourth stage, AHP was used to analyze the relative importance of factors and items. In the fifth stage, post-RFID adoption performance in Korean export companies was measured by a formula for the performance index. Through these five-stage procedure and methods, the final performance improvement strategies and practical implications are presented in the conclusion. Findings The framework finds that the total score of RFID post-adoption on company performance proved relatively low, which indicates that the effect of this technology on export companies’ performance is still unsatisfactory. And financial performance proved to be ‘top priority’ area, which requires the most urgent effort for improvement since its importance was higher than learning and growth, internal process and customer performance—but nonetheless its performance index was the lowest. This study finds that strategic decision making is required for adopting smart technology in the perspective of technology convergence to improve the performance of companies among heterogeneous industries. Research limitations/implications Despite the significant results of this study alone, it also has limitations. Therefore, the direction of the future study is as follows: future research should focus on finding specific impact factors enhancing post-adoption of smart technologies including RFID performance by conducting empirical studies that identify the factors affecting post adoption of smart technologies rate directly or indirectly. Originality/value In the current global market environment, not only technological convergence in the same kind of industry but also industrial convergence in the different kinds of industries are essential to manufacturing and service companies including to export companies with perspective of Innovation. This study has the value as an interdisciplinary study to actually measure the performance of a company by industrial convergence through the theme of adoption of smart technology in export companies.

The impact of counterfeit risk management on healthcare supply chain performance: an empirical analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mauro Falasca ◽  
Scott Dellana ◽  
William J. Rowe ◽  
John F. Kros
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
The United States ◽  
Equation Modeling ◽  
Significant Positive Effect ◽  
Healthcare Organizations ◽  
Content Type ◽  
Overall Performance ◽  
The Impact ◽  
Positive Effect

PurposeThis study develops and tests a model exploring the relationship between supply chain (SC) counterfeit risk management and performance in the healthcare supply chain (HCSC).Design/methodology/approachIn the proposed theoretical model, HCSC counterfeit risk management is characterized by HCSC counterfeit risk orientation (HCRO), HCSC counterfeit risk mitigation (HCRM) and HCSC risk management integration (HRMI), while performance is represented by healthcare logistics performance (HLP) and healthcare organization overall performance (HOP). Partial least squares structural equation modeling (PLS-SEM) and survey data from 55 HCSC managers are used to test the research hypotheses.FindingsHCRO has a significant positive effect on HCRM, while HCRM has a positive impact on HRMI. With respect to HLP, HCRM has a nonsignificant effect, while HRMI has a significant impact, thus confirming the important mediating role of HRMI. Finally, HLP has a significant positive effect on the overall performance of healthcare organizations.Research limitations/implicationsAll study participants were from the United States, limiting the generalizability of the study findings to different countries or regions. The sample size employed in the study did not allow the authors to distinguish among the different types of healthcare organizations.Originality/valueThis study delineates between a healthcare organization's philosophy toward counterfeiting risks vs actions taken to eliminate or reduce the impact of counterfeiting on the HCSC. By offering firm-level guidance for managers, this study informs healthcare organizations about addressing the challenge of counterfeiting in the HCSC.

The effect of supplier development initiatives on purchasing performance: a structural model

2005 ◽  
Vol 10 (4) ◽  
pp. 289-301 ◽  
Author(s):  
Cristóbal Sánchez‐Rodríguez ◽  
David Hemsworth ◽  
Ángel R. Martínez‐Lorente
Keyword(s):  
Supply Chain ◽  
Structural Equation ◽  
Manufacturing Industry ◽  
Structural Model ◽  
Essential Element ◽  
Equation Modeling ◽  
Supplier Development ◽  
Manufacturing Companies ◽  
Content Type ◽  
Different Levels

PurposeSupply chain management is an increasingly important organizational concern, and proper management of supplier relationships constitutes one essential element of supply chain success. However, there is little empirical research that has tested the effect of supplier development on performance. The main objective is to analyze the effect of supplier development practices with different levels of implementation complexity on the firm's purchasing performance.Design/methodology/approachThree supplier development constructs were defined: basic supplier development, moderate supplier development, and advanced supplier development. Three structural models were hypothesized and tested using structural equation modeling through field research on a sample of 306 manufacturing companies in Spain.FindingsIdentified important interrelationships among the various supplier development practices, basic, moderate, and advanced. Also indicated that the implementation of supplier development practices significantly contributes to the prediction of purchasing performance.Research limitations/implicationsThe use of a single key informant could be seen as a potential limitation of the study. The study was a cross‐sectional and descriptive sample of the manufacturing industry at a given point in time. A more stringent test of the relationships between the different levels of supplier development and performance requires a longitudinal study, or field experiment.Practical implicationsThis study focused on supplier development practices and revealed how involving suppliers in supplier development activities is important and may help buyers to increase their purchasing performance. The findings from the structural analysis should provide practicing managers with insights on how these practices and their benefits are related in terms of purchasing performance, thus affecting their ability to make better sourcing decisions.Originality/valueFills an important gap in the purchasing literature with respect to the area of supplier development. While there is much written about supplier development based on conceptual and case study research, this study is unique in that it is the first attempt to empirically model the relationships between different levels of supplier development and their impact on purchasing performance using a comprehensive set of practices.

scholarly journals Supplier-initiating risk management behaviour and supply-side resilience: the effects of interpersonal relationships and dependence asymmetry in buyer-supplier relationships

2020 ◽  
Vol 40 (7/8) ◽  
pp. 971-995
Author(s):  
Yiyi Fan ◽  
Mark Stevenson ◽  
Fang Li
Keyword(s):  
Risk Management ◽  
Interpersonal Relationships ◽  
Supply Side ◽  
Large Set ◽  
Supplier Relationships ◽  
Content Type ◽  
Management Behaviour ◽  
Wide Range ◽  
Dependence Asymmetry ◽  
The Relationship

PurposeThe aim of the study is to explore how two dimensions of interpersonal relationships (i.e. size and range of relationships) affect supplier-initiating risk management behaviours (SIRMB) and supply-side resilience. Further, the study aims to explore the moderating role of dependence asymmetry.Design/methodology/approachNine hypotheses are tested based on a moderated mediation analysis of survey data from 247 manufacturing firms in China. The data are validated using a subset of 57 attentive secondary respondents and archival data.FindingsSIRMB positively relates to supply-side resilience. Further, SIRMB mediates the positive relationship between range and supply-side resilience, and this relationship is stronger at lower levels of dependence asymmetry. Yet, although dependence asymmetry positively moderates the relationship between range and SIRMB, it negatively moderates the relationship between size and SIRMB. We did not, however, find evidence that size has a conditional indirect effect on supply-side resilience through SIRMB.Practical implicationsManagers in buying firms can incentivise SIRMB to enhance supply-side resilience by developing a diverse rather than a large set of interpersonal relationships with a supplier. This might include allocating particular employees with a wide range of contacts within a supplier to that relationship, while it may be necessary to adopt different networking strategies for different supplier relationships. Firms in a highly asymmetrical relationship may seek to raise supplier expectations about the necessity to initiate risk management behaviour or look to change the dynamic of the relationship by managing contracts for fairness.Originality/valueNew knowledge on SIRMB as a mediating variable underpinning the relationship between interpersonal relationships and supply-side resilience is provided; and empirical evidence on the opposing moderation effect of dependence asymmetry is presented.

scholarly journals The effect of IC components on innovation performance in Serbian companies

2018 ◽  
Vol 48 (3) ◽  
pp. 448-466 ◽  
Author(s):  
Sladjana Cabrilo ◽  
Aino Kianto ◽  
Bojana Milic
Keyword(s):  
Structural Equation ◽  
Deep Understanding ◽  
Business Environment ◽  
Innovation Performance ◽  
Equation Modeling ◽  
Content Type ◽  
Innovative Performance ◽  
Positive Effects ◽  
Innovation Potential ◽  
Structural Capital

Purpose In investigating the linkage between intellectual capital (IC) and innovation, it is important not only to explore how IC as a whole is associated with organizations’ innovative performance but also to gain a deep understanding of the role of different IC components (groups of intangibles) in companies’ innovation performance, which is the purpose of this paper in the context of Serbian companies. Design/methodology/approach This research is based on survey data collected from 100 Serbian companies with at least 100 employees during 2014/2015. Six IC components were analyzed (human, structural, internal relational, external relational, renewal and entrepreneurial) in terms of their effect on innovation performance. Analyses were conducted using structural equation modeling and correlation analysis. Findings Findings demonstrate that renewal capital, internal relational capital and structural capital have statistically significant positive effects on overall innovative performance in Serbian companies. Practical implications The outcomes reveal potential and barriers within IC that are crucial to innovation performance in Serbian companies. In this way, this study enables a deeper understanding of intangible drivers of innovation and highlights possibilities to foster intangible innovation potential in Serbian companies. Originality/value As context (economic and cultural) has emerged as a relevant factor in researching IC, this study is original in investigating IC effect on innovation within the Serbian business environment. Additionally, the broad sexpartite taxonomy of IC contributes to a wider understanding of knowledge and its linkages to innovation.

To downsize or not to downsize: when and how does corporate downsizing create long-term value?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mishari Alnahedh ◽  
Abdullatif Alrashdan
Keyword(s):  
Positive Relationship ◽  
Business Environment ◽  
Strategic Decision ◽  
Value Appropriation ◽  
Empirical Examination ◽  
Content Type ◽  
Growth And Survival ◽  
Moderation Effect ◽  
Corporate Downsizing

Purpose How does corporate downsizing contribute to a firm’s long-term value? While the extant empirical findings on this relationship are inconclusive, contradictory and equivocal, the answers to this question remain particularly important in today’s business environment. Considering that downsizing is often directed toward long-term growth and survival, this paper aims to posit that scholars should account for the temporal nature of this strategic decision to understand its economic impact on the firm’s operations. Therefore, this paper provides a more rigorous empirical examination of how a firm’s decision to downsize its workforce affects that firm’s long-term value. Design/methodology/approach This paper used Wibbens and Siggelkow’s (2020) measure of long-term investor value appropriation (LIVA) to directly observe the effects of corporate downsizing on firm long-term value and growth. Using a sample of 3,149 US publicly traded manufacturing firms that operated between 2002 to 2018, this paper tested the main effect of downsizing on LIVA and 3 boundary condition hypotheses. Findings This paper found a positive relationship between corporate downsizing and a firm’s long-term value. Interestingly, this positive relationship is stronger among firms that had high human resource slack and R&D intensity. Contrary to the expectations, this paper did not find support for the moderation effect of the proximity to bankruptcy on the relationship between corporate downsizing and a firm’s long-term value. Originality/value With these findings, the paper sheds light on the long-term implications of a firm’s decision to downsize its workforce.

The supply-side of corruption: a review of scenario, causes and prevention measure

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nurfarizan Mazhani Mahmud ◽  
Intan Salwani Mohamed ◽  
Roshayani Arshad
Keyword(s):  
Private Sector ◽  
Business Environment ◽  
Supply Side ◽  
Public Officials ◽  
Theoretical Understanding ◽  
Content Type ◽  
Preventative Measures ◽  
Prior Literature ◽  
The Government ◽  
High Level

Purpose This paper aims to provide a proper understanding of corruption in the private sector, also known as the supply-side of corruption. It also presents the causes of corrupt practices and points out the corporations’ actions to mitigate corrupt behaviour in the business environment. Design/methodology/approach This study reviews the prior literature on the phenomenon of corruption in the private sector, its causes and the preventive measures that should be implemented. Findings Corruption in the private sector was associated with a firm’s interaction with the public sector, and the most common corruption in the private sector is grand corruption, which is improper contribution made to high-level public officials and politicians. The causes of corruption in the private sector can be explained from several dimensions: economy, psychosocial and legal and regulation. Preventative measures encompass both internal strategies, which are endogenous to business and external strategies like exogenous legislation and restrictions enforced by the government or outside organizations. Originality/value The efficient strategies in combating corruption need active cooperation and participation from the supply-side of corruption. Thus, this study contributes to the literature on the theoretical understanding of the corruption problem from the supply-side and responsibility play by the private sector in global anti-corruption initiatives.

Understanding the influence of lean and agile strategies on creating firms’ supply chain risk management capabilities

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Waqar Ahmed ◽  
Muhammad Zaki Rashdi
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Empirical Evidence ◽  
Internal Control ◽  
Market Condition ◽  
Equation Modeling ◽  
Supply Chain Risk ◽  
Content Type ◽  
Management Capabilities ◽  
The Impact

Purpose Lean and agile strategies are two basic supply chain paradigms that strategist decouples based on their internal and external environment. This study aims to identify the influence of market orientation (MO) and quality management (QM) deployment on the supply chain strategies. Furthermore, this study also seeks empirical evidence of the impact of these core strategies on creating risk management capabilities. Design/methodology/approach Quantitative research technique is deployed to explain the phenomenon. The data was gathered through a structured scale questionnaire from supply chain professionals working at different manufacturing firms. Valid data of 134 respondents is then analyzed through partial least squares structural equation modeling for further empirical understanding. Findings The outcome of the research indicates that MO capability; as an external drive is a key to make an operational strategy. QM as an internal control is more prone to formulating a lean strategy (LS). Another important finding is that LS does not complement risk management capabilities especially in an uncertain market condition. Practical implications The study suggested concrete implications for risk management through the right mix of lean and agile supply chain strategies. There are some good insights for the supply chain policy-makers working in a developing country. Originality/value This study will provide empirical evidence for managing supply chain risk through an effective strategy making.

Sign in / Sign up

Export Citation Format

Share Document