Impact of a country’s logistical capabilities on supply chain risk

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
R. Sreedevi ◽  
Haritha Saranga ◽  
Sirish Kumar Gouda

Purpose This paper aims to examine the relationship between environmental factors, risk perception and decision-making in risk management. Specifically, using attribution theory, the authors study the influence of macro-level logistical capabilities of a host country on a firm’s actual and perceived supply chain risk, and examine if this country-level factor and the firm level perception of risk affect a firm’s decision-making in risk management. Design/methodology/approach This study uses a combination of primary data from 932 manufacturing firms from 22 countries and secondary data from the logistics performance index (LPI), and empirically tests the conceptual framework using partial least squares structural equation modeling. Findings Key results reveal that a country’s logistical capabilities, measured using LPI, have a significant impact on managers’ risk perception. Firms located in countries with high LPI perceive lower risk in their supply chain both in the upstream and downstream, and therefore do not invest much in external integration, compared to firms in low LPI countries, and hence are exposed to high risk. Originality/value This is one of the first empirical studies linking a country’s logistical capabilities with supply chain risk perceptions, objective supply chain risk and supply chain risk management efforts of a firm using the International Manufacturing Strategy Survey database.

2014 ◽  
Vol 25 (1) ◽  
pp. 202-223 ◽  
Author(s):  
David E. Cantor ◽  
Jennifer Blackhurst ◽  
Mengyang Pan ◽  
Mike Crum

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.


Author(s):  
Waqar Ahmed ◽  
Muhammad Zaki Rashdi

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.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Waqar Ahmed ◽  
Muhammad Zaki Rashidi

Purpose Risk is primarily managed by developing the right strategies. Effective alignment of lean and agile strategies is always challenging for practitioners to create firm’s competitiveness. The purpose of this study is to comprehend the behavior of these fundamental supply chain (SC) strategies by using the Triple-A framework. Design/methodology/approach Sample data is collected from 257 SC professionals serving in manufacturing firms through a self-administered structured questionnaire. The statistical technique used to perform hypotheses testing is structural equation modeling. Findings This study discloses a few critical attributes of lean and agile strategies while attempting to create strategic alignment and gain maximum benefits out of it. One of the key findings is that a lean strategy finds it challenging to create adaptability. However, better alignment among the market priorities and operational capabilities may improve risk management capabilities. Practical implications This study posits various vital insights for strategy-makers. For instance, it is advised to the operations managers that lean resources are usually never capable of adopting change but can be aligned with the market changes to create a SC risk management capability for the firm. Originality/value This is an original research with various useful insights for SC operations strategy-makers and academic researchers as it reveals a key empirical evidence of past vital concepts.


2018 ◽  
Vol 118 (7) ◽  
pp. 1528-1546 ◽  
Author(s):  
Muhammad Naveed Khan ◽  
Pervaiz Akhtar ◽  
Yasmin Merali

Purpose The purpose of this paper is to investigate the knowledge gaps in the published research on terrorism-related risk in supply chains, and to develop a framework of strategies and effective decision-making to enable practitioners to address terrorism-related risks in supply chain risk management (SCRM) and security. Design/methodology/approach The study adopts a novel combination of triangulated methods comprising a systematic literature review (SLR), text mining and network analysis. These methods have not been jointly utilized in past studies, and the approach constitutes a rigorous methodology that cross-validates results and ensures the reliability and validity of qualitative data. Findings The study reveals a number of key themes in the field of SCRM and security linked with terrorism. The authors identify relevant mitigation strategies and practices for effective strategic decision making. This subsequently leads us to develop a strategic framework of strategies and effective decision-making practices to address terrorism-related risk, affecting SCRM and security. The authors also identify key knowledge gaps in the literature and explore the main contributions by disciplines (e.g. business schools, engineering and maritime institutions) and countries. Practical implications The authors provide a strategic framework of strategies and effective decision-making practices that managers can use to minimize terrorism-related risk in the context of SCRM and security. Originality/value This paper introduces a novel methodological combination for improving the quality of SLRs. It uses the approach to systematically review the strategies and effective decision-making practices interlinked with terrorism risk, affecting SCRM and security. It identifies significant knowledge gaps and defines directions for future research.


2017 ◽  
Vol 12 (4) ◽  
pp. 690-711
Author(s):  
Seyed Mahmoud Zanjirchi ◽  
Negar Jalilian ◽  
Ali Mirhoseini

Purpose According to the definitions presented for agility drivers, it can be mentioned that supply chain risk factors in terms of feature have very close roles to agility drivers and both of these factors impact the uncertainty in the environment. However, the risk factors with a wider domain are more comprehensive. This study aims to examine the effectiveness of risk as a driver on the organizational agility. Design/methodology/approach To conduct the research, after identification of influential risk factors of supply chain and indicators of organizational agility, questionnaires needed for the research were designed and after confirming their validity and reliability were distributed among the member of the sample. To assess the relationship between supply chain risk and the amount of organizational agility, data obtained from the questionnaires were analyzed using structural equation modeling technique. Findings The results of data analysis showed that supply chain risk factors could be considered as a driver affecting the organizational agility. In addition, in this study, supply chain risk factors were ranked using interpretive structural modeling. The presented comprehensive model indicated that based on causal relationships between risk factors, sovereign risk as the basis for model (three levels) and product and customer satisfaction risks as the output of the model (Level 1) were considered. Originality/value This paper fulfills an identified need to study how the risk factors as drivers of supply chain agility can have effect on agility.


Author(s):  
Veland Ramadani ◽  
Donika Zendeli ◽  
Shqipe Gerguri-Rashiti ◽  
Leo-Paul Dana

Purpose This paper aims to study and compare variables such as location, industry, socio-demographics and business factors of several companies located in Western Macedonia. Design/methodology/approach Research method is based on primary data the authors collected through questionnaires and secondary data obtained from State Statistical Office. Besides, the research sums up data classification of companies in the aspect of geomarketing and how location determinants and geo-information of certain cities can influence their business development and decision-making. Lastly, the results of data and Structural Equation Modeling integration are presented. Findings Since Republic of Macedonia is more than 25 years in transition, experts have often foreseen that companies in their country most of the time make intuitive decisions and do not take into account many elements during decision-making process in the business aspect. But on the other hand, results reveal interesting facts about companies involved in their research. For a majority of companies, the influence of geomarketing on business development is positive as long as during decision-making process its determinants have been taken into consideration and reviewed. Practical implications The paper helps the entrepreneurs to develop their businesses and decision-making process based on geomarketing determinants. Originality/value This is the first paper that investigates and compares variables such as location, industry, socio-demographics and business factors of companies located in Macedonia.


2018 ◽  
Vol 118 (5) ◽  
pp. 1018-1032 ◽  
Author(s):  
Yongyi Shou ◽  
Wenjin Hu ◽  
Yongmei Xu

Purpose The purpose of this paper is to explore the role of intellectual capital (IC) in supply chain intelligence integration (SCII) and the interrelationships of the three components of IC (i.e. human capital (HC), structural capital (SC) and relational capital (RC)) in the supply chain context. Design/methodology/approach This paper conducted an empirical study by using primary data from 389 sample firms. The authors applied structural equation modeling to test the proposed hypotheses. Findings The results indicate that both HC and RC have direct impact on SCII, whereas SC only influences SCII through RC. Originality/value This study evidences that IC is an enabler of SCII. Furthermore, this study reveals the interrelationships of human, structural and RC.


2022 ◽  
Vol 62 (1) ◽  
Author(s):  
Murilo Zamboni Alvarenga ◽  
Marcos Paulo Valadares de Oliveira ◽  
Hélio Zanquetto Filho ◽  
Kevin C. Desouza ◽  
Paula Santos Ceryno

ABSTRACT The ability to recover from disruptions is important for organizations and supply chains. Empirical data were used to investigate factors that affect supply chain recovery from disruptions, including collaboration, visibility, flexibility, analytical orientation, and supply chain risk management. A literature review was conducted to build an online questionnaire that was applied to manufacturing firms in Brazil. This work’s statistical method includes confirmatory factor analysis and structural equation modeling. Our results indicate that a package of resilience capabilities - collaboration, flexibility, visibility, and analytical orientation - positively affect supply chain resilience. Improving such capabilities, therefore, will allow supply chains to recover better from disruptions. It was also discovered, however, that supply chains do not recover from disruptions by way of supply chain risk management alone. Mutual impacts also exist between the group of resilience capabilities and supply chain risk management.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marcel Levy de Andrade ◽  
Elke Stedefeldt ◽  
Lais Mariano Zanin ◽  
Luis D’Avoglio Zanetta ◽  
Diogo Thimoteo da Cunha

Purpose This study aims to explore whether the application of a positive food safety (FS) climate reduces the number of FS violations in the hospitality industry. Design/methodology/approach The sample comprised 271 food handlers in six hotels and 12 restaurants in Brazil. FS climate and risk perceptions were evaluated by self-applicable questionnaires. FS violations were evaluated through observations during the workday. Structural equation modeling with partial least squares was used to test four hypotheses. Findings The findings of this study suggest that a positive FS climate reduces the number of FS violations. It was also observed that risk perception moderated the relationship between FS climate and violations. Physical structure was also identified as a predictor of adequate FS practices. Practical implications The results indicate that restaurant owners and managers should invest in actions toward a positive FS climate. Originality/value It is evident that FS climate elements should be evaluated together, providing a better understanding of the organizational climate and FS culture. Additionally, the bi-directional effect of risk perception was discussed, affecting and being affected by adequate FS practices. To the best of authors’ knowledge, this is the first study to model the FS climate in the hospitality sector and discuss the implications.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Javad Feizabadi ◽  
Somayeh Alibakhshi

PurposeTo address how organizations should be malleable, the purpose herein is to draw on complementarity theory to examine the interaction effect of customer integration (i.e. coordination) and shared relationship governance (i.e. cooperation) on supply chain adaptability and firm's performance.Design/methodology/approachA survey research design is adopted to collect primary data from 177 automotive components suppliers. After assessing the measures' psychometric properties, the hypothesized relationships are evaluated using hierarchical regression analysis supplemented by structural equation modeling and complementarity test.FindingsIn the context of industrial markets, and specifically the automotive component industry, a complementary interaction effect is found between coordination and cooperation. The complementary impact was significant in affecting the supply chain adaptability and the firm's performance. Our results refine the existing supply chain integration by highlighting the complementary effect of coordination and cooperation.Practical implicationsUnderstanding the true interaction effect between cooperation and coordination to develop supply chain integration avoids decision-makers' misperception over or underinvesting in activities. This research also provides key insights on the complementary effect of coordination and cooperation to establish structural flexibility in the supply chain and the ability to respond to the disruptions, such as the COVID-19 pandemic.Originality/valueUnderstanding the true interaction effect between cooperation and coordination to develop supply chain integration avoids decision-makers' misperception over or underinvesting in activities. The implications for theory and practice are also presented.


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