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The Role of Risk in Environment-Related Supplier Initiatives
Abstract
This paper extends previous literature on the greening of supply chains by giving explicit consideration to two main areas – the role of risk, and the motives for undertaking different sorts of environment-related supplier initiatives. A model is presented which describes the extent and type of environment-related supplier initiatives that may be undertaken by firms as a result of the interaction of the perceived losses to the firm associated with inaction, and the actual level of strategic purchasing in the firm.
... The purpose of this study is to improve theoretical understanding of biodiversity management in PSCM. To this end, this research adopts a qualitative approach involving interviews with biodiversity experts and representatives of firms who have taken an active approach to managing biodiversity in their supply chains (Corbin and Strauss, 2014). Specifically, the paper seeks to better understand the PSCM practices that firms have adopted or developed together with their supply chain members and other stakeholders to tackle biodiversity loss. ...
... Klassen and Vachon (2003) see the former as collaborative activities that aim to achieve sustained improvements in environmental performance. Collaboration practices include supplier training and education (Cousins et al., 2004;Klassen and Vachon, 2003;Sancha et al., 2019), exchanging knowledge and expertise (Klassen and Vachon, 2003;Rao and Holt, 2005;Vachon and Klassen, 2006), jointly solving sustainability problems (Vachon and Klassen, 2006;Lee and Klassen, 2008;Grimm et al., 2014), and jointly developing new sustainability solutions Klassen, 2006, 2008;Lee and Klassen, 2008). Assessment or monitoring practices, on the other hand, are based on arm's length activities and are described by Klassen and Vachon (2003, p. 339) as "evaluative activities taking the form of information gathering by manufacturers to assess and to monitor environmental management and performance of their suppliers". ...
... Assessment or monitoring practices, on the other hand, are based on arm's length activities and are described by Klassen and Vachon (2003, p. 339) as "evaluative activities taking the form of information gathering by manufacturers to assess and to monitor environmental management and performance of their suppliers". Assessment practices include supplier audits (Grimm et al., 2014;Marshall et al., 2015;Sancha et al., 2019) and questionnaires (Bowen et al., 2001;Vachon and Klassen, 2006), codes of conduct (Vachon and Klassen, 2006), environmental certifications and standards (Grimm et al., 2014;Hoejmose et al., 2014;Marshall et al., 2015), environmental management systems (Cousins et al., 2004;Vachon and Klassen, 2006), monitoring of suppliers' environmental performance (Bowen et al., 2001;Cousins et al., 2004;Lee and Klassen, 2008), and penalty clauses (Rao and Holt, 2005), rewards and incentives (Bowen et al., 2001;Rao and Holt, 2005;Marshall et al., 2015) relating to sustainability performance. ...
This paper addresses biodiversity management in supply chains. Biodiversity loss is one of the most critical environmental issues currently facing the planet, and yet, rather surprisingly, has received little attention by management scholars and researchers in supply chain management. This paper aims for greater theoretical and practical understanding of the issue by examining firms’ purchasing and supply chain management practices that specifically relate to managing biodiversity. This qualitative study involves interviews with representatives of six firms and other organizations in Finland and New Zealand. The research shows how these firms adopt or develop biodiversity management practices that reduce or eliminate negative biodiversity outcomes or even contribute to biodiversity restoration and regeneration. Using an inductive theory building approach and integrating insights from the supply chain practice view into theorizing, this paper develops a theoretical framework of practices adopted and developed by firms to manage biodiversity.
... -Reputational damage that affects the company's reputational capital [63,64]; -Financial consequences in the form of decreased gains, augmented costs, and liquidity shortage due to penalties [5,65,66]; -Legal actions of governmental and institutional actors in the case of firm's noncompliance with laws and regulations [66,67]. ...
... -Reputational damage that affects the company's reputational capital [63,64]; -Financial consequences in the form of decreased gains, augmented costs, and liquidity shortage due to penalties [5,65,66]; -Legal actions of governmental and institutional actors in the case of firm's noncompliance with laws and regulations [66,67]. ...
... Reputational damage that affects the company's reputational capital [63,64]; − Financial consequences in the form of decreased gains, augmented costs, and liquidity shortage due to penalties [5,65,66]; − Legal actions of governmental and institutional actors in the case of firm's non-compliance with laws and regulations [66,67]. ...
Smart technologies have dramatically improved environmental risk perception and altered the way organizations share knowledge and communicate. As a result of the increasing amount of data, there is a need for using business intelligence and data mining (DM) approaches to supply chain risk management. This paper proposes a novel environmental supply chain risk management (ESCRM) framework for Industry 4.0, supported by data mining (DM), to identify, assess, and mitigate environmental risks. Through a systematic literature review, this paper conceptualizes Industry 4.0 ESCRM using a DM framework by providing taxonomies for environmental risks, levels, consequences, and strategies to address them. This study proposes a comprehensive guide to systematically identify, gather, monitor, and assess environmental risk data from various sources. The DM framework helps identify environmental risk indicators, develop risk data warehouses, and elaborate a specific module for assessing environmental risks, all of which can generate useful insights for academics and practitioners.
... Cousins et al. [ 19 ] Sancha et al. [ 20 ] Hollos et al. [ 28 ] Carter et al. [ 29 ] Carter & Dresner [ 21 ] Yu & Huo [ 30 ] Trudel & Cotte [ 25 ] Mette & Skjoett -Larsen [ 27 ] Brand/reputation Risk X Supply Risk X Mimetic/Competition X X Coercive/Regulatory X Normative Pressures X Customer demand X Positive Motivation X Financial/Costs X X X X Psychological loss X developing suppliers through knowledge transfer, or (v) direct or joint investment e.g. focal firms investing in wastewater treatment at supplier factories. ...
... This can be also seen as an opportunity since focal firms' efforts in improving supplier sustainability add to their brand image. Perceived risks to the focal firm due to its inaction compels the focal firm to undertake supplier sustainability initiatives [19] . ...
... poor soil quality due to fertilizer overuse) can result in a supplier's inability to meet the time, quality, and quantity requirements of the focal firm. In extreme cases, focal firms may have to incur supplier switching costs [19] . ...
Sustainability is not a one-player task. Organizations have started to realize that their supply chains have a significant social and environmental impact, usually greater than their own operations, and managing sustainability at suppliers is crucial for supply chain-wide sustainability. Supplier sustainability management (SSM) research is fast evolving across multiple disciplines but lacks an interdisciplinary review to gauge the progress made, and to decide the path forward. Heightened global focus on sustainability compels us to explore research avenues in SSM for meaningful progress. In this paper, we provide a comprehensive review of SSM research including the most recent work. We propose the Motivation-Measure-Analyze- Improve-Govern (MMAIG) framework for supplier sustainability, identify the limitations of current SSM research in enabling this framework, and propose future research directions. Our key observations are that a) current SSM research is heavily focused on measuring and monitoring supplier sustainability, and b) supplier sustainability improvement/development research is limited and the majority of it is about sustainable supplier selection. The future research directions that we propose are centered around a) optimizing the investments towards supplier sustainability through collaboration, proposing mechanisms that consider risks, liabilities, and gains of all parties, and b) considering behavioral aspects to overcome SSM implementation issues. Organizations can achieve efficient improvement in supplier sustainability by using a collaborative approach that is data-driven and trust-based. We discuss several mechanisms within our MMAIG framework that can help organizations in their collaborative approach.
... Widespread concerns in recent times over climate change impacting on manufacturing, transport and supply chains have seen a greater sense of urgency for adaptive change in GreenSCM literature (Cousins, Lamming, & Bowen, 2004;Geyer & Jackson, 2004;Bansal, 2005;Handfield, Sroufe & Walton, 2005;Hervani, Helms & Sarkis, 2005;Power, 2005;Preuss, 2005, Rao & Holt, 2005Zhu, Sarkis & Geng, 2005;Vachon & Klassen, 2006;Simpson, Power & Samson, 2007;Kolk & Pinkse, 2007;Lee, 2008;and Walker, Di Sisto & McBain, 2008). To encapsulate recent Green SCM trends, the following section outlines key findings from these GreenSCM academic publications from 2004 to 2008. ...
... Along this line, key themes in the GreenSCM literature of 2004 concerned risks and supply chain implications (Cousins et al, 2004) and product management and proactive supply chain action (Geyer & Jackson, 2004). Cousins et al (2004) discussed possible risks associated with environmentally-oriented supplier initiatives. ...
... Along this line, key themes in the GreenSCM literature of 2004 concerned risks and supply chain implications (Cousins et al, 2004) and product management and proactive supply chain action (Geyer & Jackson, 2004). Cousins et al (2004) discussed possible risks associated with environmentally-oriented supplier initiatives. The risks included natural hazards, business exposures, income or other business losses and possible associated fluctuations in levels of purchasing. ...
... the supply chain, and conflict between stakeholders (Cousins et al., 2004;Cunha et al., 2019). Some global events such as the Kodaikanal mercury poisoning in India (2001), the Gulf of Mexico oil spill (2010), the explosions from hazardous chemicals at Beijing's Maritime Gateway (2015), Volkswagen's emission scandal in Germany (2015), and the Brazilian damming ruptures (2015 and 2019), highlight some environmental damages in the supply chains of large firms. ...
... The legal consequences are also associated with financial losses since fines and legal penalties minimise the company's profits. According to Cousins et al. (2004), high perceived losses can motivate companies to manage environmental risks. Table 4 presents the environmental policies and strategies to control and mitigate environmental risks in order to avoid undesirable consequences. ...
The environmental supply chain risk management has emerged as a prominent research topic in the past few years. This work proposes, through a systematic literature review, a taxonomy for environmental risks and presents the findings to support future works on environmental supply chain risks.
... Three articles are classified as being behavioral, empirical, and rational normative studies (Hirsch and Meyer, 2010;Wu et al., 2017;Govindan et al., 2018a,b); these combine unstructured and structured data, and take a prescriptive decision-making approach. Finally, three articles are classified as conceptual papers (Hajmohammad and Vachon, 2016;Cousins et al., 2004;Piercy and Lane, 2007) and nine as behavioral empirical studies (for example, Yadlapalli et al., 2018). ...
... Busse et al., 2017;Cousins et al., 2004;Ehrgott et al., 2011;Giannakis and Papadopoulos, 2016;Hajmohammad and Vachon, 2016;Hofmann et al., 2014;Piercy and Lane, 2007; Wilhelm et al.Yawar Awasthi et al., 2018;Chen and Baddam, 2015;Cheraghalipour and Farsad, 2018;Foroozesh et al., 2018; Govindan et al., 2018a,b;Hashim et al., 2017;Hatami- Marbini et al., 2017;Hsu and Hu, 2009;Hsu et al., 2013;Jakhar, 2015;Kannan et al., 2014Kannan et al., , 2015Lu et al., 2007;Mavi et al., 2017;Qin et al., 2017;Rostamzadeh et al., 2018; Sancha et al., 2016a;Sen et al., 2016;Song et al., 2017;Tavana et al., 2017;Torres-Ruiz and Ravindran, 2018;Vahidi et al., 2018;Wang et al., 2017;Wu et al., 2017;Yazdani et al., 2017;Zarbakhshnia et al., 2018;Zimmer et al., 2017) Dey et al., 2015Govindan et al., 2013;Lima Junior et al., 2014) A, B, C and DGrimm et al., 2014;Husgafvel et al., 2015;Klassen and Vereecke, 2012;Leppelt et al., 2013; Sancha et al., 2016b) ...
This article conducts a literature review that finds three dominant topics; supplier selection, supplier development and supplier evaluation for sustainability-related supplier risk management (SSRM). It also brings together rationalist decision models with behavioral models. The main contributions and discoveries of our review are: (a) we propose a four stage typology combining a number of decision making frameworksapplied for the first time to understanding SSRM; (b) we found that multi-criteria decision models (MCDM) as the most prevalent, but with an increasing use of fuzzy heuristics; (c) a significant quantity of articles had an approach on sustainability risk centered on ethical business conduct issues, and corporate social responsibility (CSR) is employed can be considered an emerging topic. We therefore propose a future research agenda targeted at enriching a prescriptive decision analysis where both ramifications - rationalist and behavioral - are blended to encapsulate both psychological and political sources of behavioral bias and distortion, in order to better define the complex contexts of and ambiguities in problem formulation in rationalist models.
... For example, suppliers can covertly use lower-quality materials and shirk other contractual responsibilities (Barzel, 1982;Demsetz, 1988;Wathne & Heide, 2000). Buyers must also consider the social and environmental aspects of a supplier's performance-often difficult to evaluate-that can affect their reputation (Cousins et al., 2004). Studies have found that performance ambiguity is one of the most difficult challenges in managing supplier relationships (Gray & Handley, 2015). ...
An outsourcing decision does not equate to the outsourcing of a sourcing decision. Many indirect transactions with lower-tier suppliers are embedded in transactions with first-tier suppliers. Building on Williamson's (1985) identification of a transaction as the fundamental unit of analysis, this study proposes that transactions comprise bundles of intertwined direct transactions at the firm level and indirect transactions at the supply chain level. These indirect transactions require separate but not independent sourcing decisions. Using a buyer's decision to control or delegate the governance of indirect transactions for an externally sourced product, this study demonstrates that disaggregating the transaction advances theory by extending the range of outcomes, refining the calculus of the make-or-buy decision, and providing a coherent theoretical framework for multi-tier supply chain management. This study considers the theoretical, managerial, and societal implications across various contingencies involving inter-firm relationships.
... However, this literature stream has few overlaps with sustainable supply chain optimisation modelling. Cousins et al. (2004) develop a model on green supply chains, considering two main aspects: the role of risk and the motivations of companies to undertake the different types of environment issues related to supplier initiatives. Mari et al. (2014) introduced an optimisation model which incorporates taking into account the sustainability aspect via carbon emission and resilience via location-specific risks. ...
... For example, strategic procurement can reduce search costs by developing long-term relationships with suppliers, thereby reducing the need to constantly search for new suppliers (Barratt & Oke, 2007). Strategic procurement can also reduce contract negotiation costs by standardizing contract terms and conditions across suppliers (Cousins et al., 2010). Hypothesis H3 in this study posits that the implementation of strategic procurement by manufacturing enterprises has a positive impact on partnership between enterprises. ...
This study focuses on the impact of strategic procurement by manufacturing enterprises on supplier involvement in new product development in Guangdong Province, the largest economic province in China. While there is existing research on supplier participation in new product development, less attention has been given to the role of procurement in this process. The study aims to explore the relationships between strategic procurement and supplier capabilities, supplier capabilities and participation in new product development, and enterprise cooperation and supplier participation in new product development. Using a conceptual model based on supply chain and transaction cost theories, the study finds that strategic procurement positively affects supplier investment in new product development through improved supplier capabilities and partnership between enterprises. Additionally, supplier technical and supply capabilities, trust between enterprises, and communication and collaboration positively influence supplier participation in new product development. The study recommends that manufacturing enterprises prioritize the strategic function of procurement, develop existing supplier capabilities, and establish good cooperation with suppliers involved in new product research and development to enhance the impact of strategic procurement on supplier investment in new product development.
... A buyer chooses to develop and invest in a long term relationship with suppliers, it can bring significant benefits (Burnes and Dale, 1998;Burnes and New, 1996;Womack et al., 1990). However, Cousins et al. (2004) argued that if either partner defaults or attempt to take advantage of the other, the risk can be significant too. ...
This paper investigates the business environmental factors influencing supply chain buyer-supplier relationships in the Chinese context. Buyer–supplier relationships have evolved principally from the viewpoint of Western countries over the last two decades (Ford, 1980; Dwyer et al., 1987; Trent, 2005). There has been a trend from traditional arm’s-length relationship towards obligational relationship (Sako, 1992). Collaborative relationships regarded as “the most sophisticated form of supply chain partnerships?”, imply that the buyer or supplier adopts closer relationship with key suppliers, in order to manage risk effectively (Harrington, 1998). Should a buyer choose to develop and invest in a long-term relationship with suppliers, it can bring significant benefits (Burnes and Dale, 1998; Burnes and New, 1996; Womack et al., 1990). However, Cousins et al. (2004) argue that if either partner defaults or attempt to take advantage of the other, the risk can be significant. Thus, Zsidisin et al.,(2000) advocates the use of multiple sources of supply as a means of risk reduction. These multiple or single-purchasing relationships both have developed from the context of a transaction-based business culture. By contrast, Chinese business society is relation-based (Chen, 2003) and takes place in the context of a planned, rather than a market economy. This paper posits that supply chain relationships between Western buyers and Chinese suppliers occur in a significantly different business context to extant relationship theories and explores the effect of specific
environmental factors on supply chain relationships.
... Therefore, SCM is challenging not only because of the intricate global distribution paths of services and commodities but also because of the great distances that exist between numerous suppliers (Reuter et al., 2010). Even though businesses are required to take responsibility for both themselves and the SCs that they operate, they are confronted with a variety of challenges and dangers on a social, environmental, and economic level (Cousins et al., 2004). This is especially true for vendors originating from emerging and developing markets, which regularly find themselves in challenging social, economic, and political circumstances (Beske et al., 2008). ...
Sustainable supply chain management (SSCM) is a new area of interest to scientists and industrial practitioners through which to maintain productivity, reduce costs, and enhance agility. SSCM is especially important to protect the environment and reduce pollution by heavy industries. It considers the environment the main stakeholder in minimizing the carbon footprint during production, lowering emissions of dangerous gases, and reducing industrial pollution. Considering the aforementioned purposes, the aim of this study was to explore the relationships between top management support, perceived justice, supplier management, and SSCM and assess the moderating role of supply chain agility. This quantitative study was conducted in the vast textile sector in Pakistan. We collected data through a questionnaire and found that top management support, perceived justice, and supplier management are positively and significantly associated with SSCM. However, there was no significant moderating effect of supply chain agility on the independent variables and SSCM. These findings have practical implications for production managers and top management in enhancement of their roles in promoting environmental wellbeing. By developing rules at the organizational and governmental levels that consider the role of top management, perceived justice, and improved supplier management, the sustainability of the supply chain can be improved. This analysis provides academics who study the supply chain a practical prescription and adds to the body of knowledge about the validity of top SSCM pillars.
... The research concerning risks in a supply chain is fairly new and it started with risks and purchases (Khan and Bernard 2007). Since then, several authors have addressed the relationship between risk and supply chains (Robinson et al. 1967;Burnes and Dale 1998;Burnes and New 1996;Cousins et al. 2004;Hood and Young 2005;March and Shapira 1987;Johnson and Haug 2021;Alora and Barua 2022;Ekwall and Lantz 2021). Studies of supply chain risks seldom address specific causes of risk (Christopher and Lee 2004;Christopher and Peck 2004;Juttner 2005;and Sheffi 2001). ...
This paper examines weekly and annual seasonality in incident categories to find
patterns and trends in transport crime globally, concerning the value of stolen goods,
incident frequency and incident category. Secondary data is utilized to analyse a
contemporary challenge in logistics and supply chain research, namely theft and
robbery of goods during shipment. The research is based on the TAPA global IIS
transport-related crime database. Incident frequencies and mean values are analysed
primarily with chi-square tests and analyses of variance (ANOVAs). The results are
analysed and discussed within a frame of reference consisting of theories from logis-
tics and criminology. The main conclusion is that there is an annual as well as a
weekly seasonality of most incident categories, but the patterns vary among incident
categories. The results are primarily limited by the content and classification within
the TAPA IIS database.
... On the other hand, on the issue of sustainability, the first performance indicator that springs to the mind of both practitioners and researchers carrying out previous works is financial competency (Foerstl et al., 2010). Further, the central part of the previous paper focused on environmental sustainability for companies (Cousins et al., 2004;Anderson and Anderson, 2009;Teuscher et al., 2006). These research topics are important, but they cannot provide a holistic approach to developing a strategy for designing a sustainable supply chain system. ...
Purpose- The present study aims to provide a practical and robust assessment technique for assessing countries' investability in global supply chains to practitioners. Thus, the proposed approach can help decision-makers evaluate and select appropriate countries in the expansion process of the global supply chains and reduce risks concerning country (market) selection.
Design/methodology/approach- The present study proposes a novel decision-making approach, namely the REF-Sort technique. The proposed approach has many valuable contributions to the literature. First, it has an efficient basic algorithm and can be applied to solve highly complicated decision-making problems without requiring advanced mathematical knowledge. Besides, some characteristics differentiate REF-Sort apart from other techniques. REF-Sort employs the value or value range that reflects the most typical characteristic of the relevant class in assignment processes. The reference values in REF-Sort and center profiles are similar in this regard. On the other hand, class references can be defined as ranges in REF-Sort. Secondary values, called successors, can also be employed to assign a value to the appropriate class. REF-Sort can also determine the reference and successor values/ranges independently of the decision matrix. In addition, the proposed model is a maximally stable and consistent decision-making tool, as it is resistant to the rank reversal problem.
Findings- The current papers' findings indicate that countries have different features concerning investment. Hence, the current paper pointed out that only 22% of the 95 countries are investable, whereas 19% are risky. Thus, decision-makers should make detailed evaluations using robust, powerful, and practical decision-making tools to make more reasonable and logical decisions concerning country selection.
Originality/value- The current paper proposes a novel decision-making approach to evaluate. According to the authors' information, the proposed model has been applied to evaluate investable countries for the global supply chains for the first time.
... Risk consequences are considered from the perspective of the impact on resources: physical, financial, and human (28). Quality issues of products, damage to property and equipment, loss of reputation, financial losses, and delivery delays are considered as risk consequences (63). In SCRM, risk consequences are identified based on the impact on processes, related to breakdown, costs, delay, quality (64,65), and quantity (66). ...
The increased frequency and severe consequences of risks in the cruise industry have attracted increasing attention from both academics and practitioners, especially after the 2012 ‘Costa Concordia’ disaster and the 2020 coronavirus outbreak on the ‘Diamond Princess’. Although the literature on risk studies associated with the cruise industry and supply-chain risk management is growing, the extant literature lacks a study to view risks in the cruise industry associated with the supply chain. This paper addresses this gap by reviewing the literature on risks related to the cruise industry and general supply-chain risks to create a framework of cruise supply-chain risks. Then, semi-structured interviews were conducted to validate the identified risks and explore potential undiscovered risks. A novel risk typology of the cruise supply chain was then built based on the literature review and the empirical study. This includes macro risks, safety, security, and health risks, information risks, and supply risks. This framework can be applied for the purpose of systematically identifying the risks and their impacts on the cruise supply chain. This paper contributes to the development of a comprehensive cruise supply-chain risk classification with a detailed explanation of each risk in the cruise supply chain, which can be used by stakeholders in the cruise industry to identify and measure the impact of each risk. Additionally, this paper provides avenues for future research by scholars interested in assessing and managing cruise supply-chain risks.
... More specifically, the supply chain uncertainties can include inaccurate demand forecasting and inventory control, damage brand reputation and relationships with stakeholders, and cause unnecessary wastes and costs, as well as unreliable supply sources (Christopher, 2016;Cousins et al., 2004). ...
Purpose: According to the World Health Organization (WHO), one out of 10 people get sick from eating contaminated food. Complex food production processes and globalisation have made the food supply chain more delicate. Many technologies have been investigated in recent years to address food insecurity and achieve efficiency in dealing with food recalls. One of the most promising technologies is blockchain, which has already been used successfully in financial aspects, such as bitcoin, and it is attracting interests from food supply chain organisations. As blockchain has some unique characteristics, including decentralisation, security, immutability, tokenisation, and smart contract, it is therefore expected to revolutionise the food supply chain. Blockchain only started to gain the attention of the supply chain researchers in recent years. The current research is mainly conceptual, based on emerging empirical research. This research explores the application of blockchain in food supply chain management. It investigates why food companies implement blockchain in reality, including the motivations and the concerns. In addition, it explores how such companies implement the blockchain in food supply chain management.
Research method: First, a content-analysis based literature review in blockchain adoption within food supply chain is undertaken. The researcher reviews 58 of the papers most related to this topic and lays a solid ground for further research. Then a multi-case study method is adopted to investigate the issues and opportunities within the food supply chain, and how food companies apply blockchain technology in their food supply chains. This research uses a theoretical sampling approach to investigate how food companies adopt the blockchain applications in supply chain management. The selected food companies are expected to have both strong interests and mature implementation in blockchain, have engaged with multiple supply chain stakeholders, and are willing to share their detailed implementations. Three food companies based in Australia, China and the Netherlands are selected to conduct interviews. After the interviews, each case is summarised by within-case analysis with company background, supply chain issues, blockchain implementation stages, benefits of blockchain, and barriers. Next, a cross-case analysis is conducted to compare the three cases. By applying the innovation process model and the practice-based view (PBV), the discussion chapter critiques the similarities and differences in the decision making and implementation processes of the three cases with existing literature.
Findings: Following the innovation process model, this research deconstructs the implementation process into four steps (setting the stage activities, customer clue-gathering activities, negotiating, clarifying, and reflecting activities, and inter-organisational learning).
Moreover, based on the PBV, which suggests that transferable company behaviours can influence a company's competitiveness, this research identified four key success factors (capabilities, collaboration, technology readiness, external environment). Next, four categories of barriers (intra-organisational, inter-organisational, systems-related barriers, external barriers) and the benefits are also summarised.
This research introduces seven propositions and a conceptual framework to unite the identified constructs. The seven propositions are: 1) The identification of business needs is the
requisite for blockchain adoption; 2) Sufficient blockchain knowledge and pilot adoption are essential for large-scale success adoption; 3) Pre-existing trust, benefits and risk sharing can lead to successful multi stakeholder engagement in blockchain adoption; 4) The blockchain system should keep updating according to the change of needs. 5) The successful adoption of blockchain can bring at least six benefits (efficiency, transparency, accountability, digitisation, resilience, and sustainability) to food supply chains; 6) There are usually four types of barriers that need to be overcome during blockchain implementation; 7) Blockchain implementation positively relates to supply chain performance by improving supply chain efficiency, transparency, accountability, digitisation, resilience, and sustainability.
Contributions: This research makes a number of contributions to both theory and practice. From the theoretical perspective, this research is one of the first to empirically investigate blockchain in food supply chain management, and proposes an united conceptual framework based on the case findings and the literature. This research provides empirical evidence to verify academic findings such as critical success factors and barriers, but more importantly identifies the implementation process to answer the ‘how’ question. The research is one of the first to adopt the innovation process model and the PBV in food supply chain and blockchain studies. Thus, built on the original model and theory, this research enriches the theories to blockchain implementation in food supply chain management. Specific subconstructs are identified to advance the theories of the innovation process model and PBV. Finally, practical suggestions are provided to food supply chain focal firms, suppliers, and third parties.<br/
... Risk can be defined as the likelihood of variance from the objective and subjective source in the outcome (Spekman & Davis, 2004). Improper management of risk is prone to imprecise forecasting, lower quality product, poor relationships among members, loss of reputation, share price downfall and turnover, and conflict within the organizational members (Cousins et al., 2004). So, it becomes essential for the Firms to enforce methodologies related to risk management to exclude and reduce their aftereffects (Manuj & Mentzer, 2008). ...
... The second dimension to sort out was identified as production factors that comprised cost of recall, component failure, and slower new product development factors. Cousins, Lamming & Bowen (2004) identified that the consequences of supplier error can create financial and reputational loss and move right across to loss of life and a hazard to individual safety. Wagner and Bode (2006) identified that the failure of suppliers to acclimatize with technological or product design modifications can have a negative impact on customers' costs and competitiveness. ...
... SSCM practices include an organization's intra-and inter-organizational sustainability practices, aiming to make the supply chain more sustainable (Hong et al., 2018). Many scholars have endeavored to investigate the factors that drive the firm's implementation of sustainability practices from various perspectives, such as stakeholder pressure (Linton et al., 2007;Vachon and Klassen, 2008), strategic orientation , firm resources and capabilities (Cousins et al., 2004) and performance feedback (Shou et al., 2020). ...
Purpose
This study aims to investigate sustainable supply chain management (SSCM) through the lens of socio-technical system (STS) theory. Specifically, it examines the individual and synergistic effects of social and technical integration on two main sustainability practices (i.e. sustainable production and sustainable sourcing). Supply chain uncertainty is further explored as a key environmental factor.
Design/methodology/approach
A moderated joint effects model was hypothesized. A sample of 759 manufacturing firms was used to test the proposed hypotheses by hierarchical linear regression.
Findings
The results show that both social and technical integration have positive effects on sustainable production and sustainable sourcing. Interestingly, social and technical integration have an enhancing synergistic effect on sustainable sourcing, which is further strengthened in high-uncertainty supply chains.
Originality/value
This study extends the application of STS theory in the SSCM setting. It enriches the sustainability literature by uncovering the impact of the interplay among the firm's social, technical and environmental systems on sustainable production and sourcing, and offers system-wide insights for sustainability management.
... 공급사슬위험은 기업에서 재화와 정보의 흐름에 저해 요인이며, 물류활동과 깊은 관련성을 가지고 있다. 부적절하게 관리된 리스크는 부정확한 예측, 저품질, 회전율의 저하, 명성의 상 실, 타 공급사슬 구성원과의 관계 악화 그리고 조직의 이해관계자간 갈등 등을 조장할 수 있 다 (Cousins et al., 2004 (Modi & Mabert, 2010). 공급사슬통합에는 공급사슬 구성원간의 파트너십, 협업, 정보의 교환과 공유가 필수적이다 (Faisal et al., 2006). ...
... The benefits of these approaches go beyond a reduced environmental impact. Cost savings can be shared between the supplier and the focal organisation, also known as 'gain share' (Bowen et al. 2001), whilst also aiding in efforts to add value and avoid risks (Lamming and Hampson 1996); indeed, many of these decisions can be seen as risk management, balancing action and inaction (Cousins, Lamming and Bowen 2004). ...
The management of greenhouse gas emissions (GHGEs) in the supply chains of public and private organisations is increasingly recognised as an avenue through which to pursue climate change mitigation goals. This presents opportunities and challenges for
focal organisations who lead and control supply chains. The literature and practice of environmental supply chain management (ESCM) is well developed, but there remains the scope for theoretical advancements.
This research aims to deepen understanding of the current state of efforts to manage GHGEs in supply chains, including the drivers, barriers and activities involved and how they interact; exploring the policy and legislative possibilities is an additional aim.
Using qualitative methods, an exploratory interview survey of 11 experts from
academia, think tanks, business support and consultancy organisations was conducted, followed by interviews with 20 organisations in the public and private sectors.
It is found that private sector organisations, driven by factors such as competitive advantage, reputation and risk management are leading current efforts. A wide range of ESCM techniques are utilised and in some instances focal organisations are found to be attempting to increase the capabilities of their supply chains to manage GHGEs. A paradox is found in terms of public sector supply chains, through their high potential
contribution towards supply chain GHGE management, yet constrained actions.
Using these results, the research constructs an ‘Emission Reduction INtervention Options’ (ERINO) supply chain approach, outlining a range of interventions to enhance management efforts, as well as a ‘Focal Organisations Supply Chain emission Activity/Outcome’ (FOSCAO) matrix, highlighting the relationships between GHGE management activities and outcomes. Finally, a ‘Supply CHain Emission ManagEment’ (SCHEME) overview framework is constructed.
It is concluded that current action is reliant on characteristics and capabilities not present within all organisations, meaning wider engagement may require interventions by government or other actors.
... In fact, in the attempt to address the disruptions risks management paradigms have been developed. Cousins et al. (2004) presented a model on the greening of supply chains with considering two main aspects: the role of risk and the motivations to undertake by the companies to the different types of environment issues related supplier initiatives. Mari et al. (2014) introduced an optimisation model incorporates taking into account sustainability aspect via carbon emission and resilience via location specific risks. ...
... We strongly believe that the research on how to achieve sustainability and avoid risks through SBSR is still in its infancy. In particular, it is not clear how the SBSR can effectively help to establish strategic alliances that can help the buyer to deal with the inherent risk of suppliers in the context of sustainability (Bai et al., 2020b;Cousins et al., 2004). ...
Sustainable buyer-supplier relationship (SBSR) capability is a dynamic or relational capability that is considered as the key condition for achieving sustainable competitive advantage through both the buyer and its suppliers investing their heterogeneous resources. To accurately measure and develop the buyer-supplier relationship capability from the sustainability perspective, this study first proposes an effective evaluation framework based on the relational view and triple-bottom-line approach. This framework is characterized by the fact that the SBSR is a relational capability from economic, environmental and social perspectives. Then, this study develops a novel visualization method based on DEMATEL and an advanced radar chart to evaluate the level of current SBSR capability and to identify development strategies for future SBSR capability. An empirical case evaluation of the framework from both buyer and supplier perspectives are is completed with the aid of the visualization method in the textile industry of Pakistan. The results can help managers of both buyers and suppliers to easily identify the advantages and disadvantages of, and the development strategies for, each SBSR.
... Concerning the supply side, the most common practices are those investing in the long term supplier relationshipsMangla et al., 2018;Teuscher et al., 2006), investing in green purchasing(Hallikas et al., 2020), or having a multi-sourcing strategy(Ji, 2009), and information sharing(Carvalho et al., 2011). The level of implementation of practices in the supply side depends largely on the perceived losses and the available resources(Cousins et al., 2004).Typical demand-side practices identified are customer relationship managementBeske & Seuring, 2014;Cruz, 2013;Mangla et al., 2018) and demand postponement(Ji, 2009). Product-related practices include product interchangeability and responsive pricing(Ji, 2009). ...
Sustainability has emerged as an important industrial strategic outlook expanding beyond organizational boundaries to include the supply chain. Simultaneously, the industry has also been faced with supply chain resilience concerns. Research on the intersection of supply chain sustainability and resilience is nascent and is a consequence of their observed mutual influences. However, confusion about concepts, implementation methods, and measurements of sustainable and resilient supply chains remains. This study completes a systematic literature review that critically examines several major observations and directions. We find the concept of sustainable supply chains is more established, and general agreement on its theoretical foundations exists. Supply chain resilience is relatively less mature. The nexus and relationships between the two topics are often incoherent: there is confusion on sustainable and resilient supply chains establishment; there is no clarity on what practices could jointly advance both areas. A major conflict exists since sustainability generally focuses on efficiency, while resilience seeks effectiveness. We recommend studies to analyze implementation relationships and impact. We also observe that performance measurement systems should be developed to assess supply chain sustainability and resilience performance taking with explicit consideration time horizons considered in these measures. K E Y W O R D S resilience, supply chain, supply chain resilience, sustainability, sustainable supply chain
... The continuous attempt to achieve profitability and the emergence of recent manufacturing practices (like globalization, single sourcing, lean manufacturing, etc.) are pushing modern SCs toward risk (Tarei et al., 2018). The risk in SC leads to serious repercussions like inferior product quality, devastation of property and machinery, loss of firm's reputation, delivery delays (Cousins et al., 2004), manufacturing disruption (Zhang et al., 2018), conflict among various shareholders (Craighead et al., 2007) and sharp decline in firm's share price (Hendricks and Singhal, 2005). A practical implementation of supply chain risk management (SCRM) improves not only the financial performance of the firm (Fan et al., 2017) but also the manufacturing effectiveness and overall performance of SC (Thun and Hoenig, 2011). ...
Purpose
The purpose of this paper is to develop a decision support system (DSS) to assist supply chain (SC) risk managers to select a suitable risk management (RM) strategy and expedite the implementation of corresponding RM enablers. The relationship between RM strategies and RM enablers is explored by identifying the underlying factors between them, which is further used to build the DSS.
Design/methodology/approach
The DSS is built by integrating heterogeneous techniques. A systematic review approach is employed to explore both proactive and reactive RM enablers, and they are further mapped to various RM strategies by using c orrespondence analysis (CA). An in-depth interview is conducted to develop the rules for constructing the decision system. A rule-based fuzzy inference system (FIS) is utilized to counteract the uncertainty involved in the decision variables. The efficacy of the proposed DSS is demonstrated by considering two conjectural scenarios in the case of Indian petroleum SC (IPSC).
Findings
The results reveal three primary underlying factors between the risk mitigation strategies viz. SC managers' preparedness to face risk, organization's resource capability to deal with risk and the sophistication of the implementation of the RM enablers; with explained variances of 37%, 29% and 22%, respectively. Risk avoidance strategy comprises of RM enablers such as supplier evaluation, technology adaption, information security, etc. Whereas, the risk-sharing strategy includes revenue sharing, insurance, collaboration, public-private-partnership, etc. as essential RM enablers. The DSS recommends risk-mitigation and risk-sharing as effective RM strategies for the IPSC under the considered scenarios.
Research limitations/implications
This paper develops a decision support framework for recommending an effective risk mitigation strategy and outranking the corresponding enablers. The study explicitly focuses on the risk mitigation step of the supply chain risk management (SCRM) process. Pre- and post-risk mitigation steps of the SCRM process, such as risk assessment and risk monitoring are beyond the scope of this research.
Originality/value
The operational procedure of the proposed DSS is explained by considering a real-life case of petroleum SC in the Indian scenario. The unique contributions of this study are presented as theoretical implications and managerial propositions in the context of a developing country.
... These initiatives are related to projects and programs that are designed to improve SC sustainability performance (Walker and Jones, 2012). SC sustainability initiatives are launched and managed by SC players, but they may impact multiple SC stakeholders (Cousins et al., 2004;Tura et al., 2019). ...
Purpose
This paper explores how organizational capabilities and path dependence affect the implementation of supply chain (SC) sustainability initiatives. Through the lenses of contingency and evolutionary theory, the paper addresses the underexplored supply chain dynamics that enhance or inhibit sustainability trajectories.
Design/methodology/approach
Using in-depth multi-case studies for theory elaboration, five supply chains were studied through open-ended interviews with SC members, secondary data collection and site visit observation. The design consists of a combination of deductive and inductive approaches to elaborate theory on supply chain dynamics and enhanced sustainability trajectories.
Findings
The empirical study shows that learning is a fundamental condition for supply chains as they implement sustainability initiatives, and that exploitation capabilities are more frequently used than exploration capabilities. Path dependence plays a role in the outcomes of supply chain sustainability initiatives, which are influenced by both path dependence and contingencies of the contexts in which these systems operate.
Research limitations/implications
This paper puts forward five propositions that emerge from the literature and from the field study results. Although this is an exploratory research bounded by geographical limitations and the limited number of SC cases, the goal of elaborating theory may open up several promising avenues for future large-scale and longitudinal research studies.
Practical implications
By enhancing our understanding of the dynamics of supply chain sustainability trajectories, decision-makers, scholars and policy-makers can better understand how supply chains learn, how they employ SC member capabilities and how they deal with stakeholder resistance.
Originality/value
This paper extends supply chain sustainability theory by addressing the knowledge gap that exists with regard to understanding the dynamics of evolving supply chain sustainability trajectories. This paper sheds additional light on this important topic and contributes in multiple ways to the sustainable supply chain management literature.
... It should be noted that the term "environment" means "green" unless otherwise is indicated. This term should not be confused with the term "business Supply chain sustainability risk analysis environment" used to describe the organizational environment of a company (Cousins et al., 2004). ...
Purpose
The main purpose of the present study was to improve and develop previously proposed models for Iran telecommunication networks. It should be noted that the six-dimensional (6D) sustainability model used in this study will be a useful and comprehensive model for industries. Since, the new dimension of IT along with the five well-known economic, social, environmental, technical and institutional aspects of organizations is considered to have great impacts on supply chain sustainability; the proposed framework can be practical.
Design/methodology/approach
According to the related literature review, there are two research streams in supply chain management. The first stream is exploratory research, seeking out conceptual discussions in this area. The second one is associated with mathematical models and techniques, aiming to set decision-making rules in this regard (Agrell et al. , 2004). In this study, evaluation was performed using the FMEA method as an analytical technique based on the principle of pre-occurrence prevention to identify potential failure factors in sensitive systems (Mohammadfam and Kianfari, 2008).
Findings
After identifying the risks and causes of the incidence and effects and consequences of risks, preventive and risk control measures and advisory strategies were presented. Customers with 45.76% share in critical risks are threatening to maintain supply chain in these companies. During this study, it was found that 33.9% of the main source of supply chain critical risks was customers, constituting 45.76% of such risks, accompanied by organization, having a 38.88% share of critical risk generation. The study findings also revealed that 33.9% of critical risks were mainly (equally) related to economic and technical aspects of supply chain sustainability in telecommunication networks. Moreover, as a newly-introduced sixth dimension, IT represented 10.17% of critical risks threatening supply chain sustainability in such networks. Critical risks are mainly related to the economic and technical aspects (equally) with the sustainability of the telecommunication networks supply chain. Also, as a new finding and the sixth dimension, 10.17% of the critical risks that threaten the sustainability of the telecommunication networks supply chain have the information technology dimension.
Originality/value
The internet and fixed and mobile data services are provided by several private companies in Iran, which are relatively similar in terms of their supply chains. In order to manage the sustainability of Iran's telecommunication supply chain, telecommunication networks affiliated to Iran Telecommunication Company (ITC), operating in the field of data and internet services and fixed telephone were selected in 31 provinces. The intended networks were also providing an important part of the country's needs including Mobile Telecommunication Company of Iran, a subsidiary of Iran's telecommunication networks, as one of the top companies in this industry. Accordingly, all the networks studied in this study needed to be identified with regard to communication sustainability risks, since they provide management solutions to each other by segregating risks. In this study, 68 managers and 72 experts participated in different work teams of telecommunication networks.
... The continuous avarice to enhance sole efficiency and the implementation of some contemporary SC practices such as SC risk mitigation strategies and practices globalization, single sourcing and lean manufacturing are some of the critical drivers of SC risk. The risk in the modern SC can result in serious adverse consequences such as substandard product quality, devastation of infrastructure and machinery, loss of firm's brand image, delivery delays (Cousins et al., 2004), conflict among various shareholders (Craighead et al., 2007) and sharp decline in firm's share price (Hendricks and Singhal, 2005). In this regard, the past two decades have experienced an accelerated and voluminous growth of research work pertaining to the supply chain risk management (SCRM) domain by heterogeneous approaches, namely conceptual Zsidisin et al., 2000;Christopher and Peck, 2004), theory building (Hallikas et al., 2002;Wever et al., 2012), qualitative (Markmann et al., 2013), case studies (Blos et al., 2009;Tukamuhabwa et al., 2017), empirical (Wagner and Bode, 2006;Chen et al., 2013;Dubey et al., 2017), mathematical (Micheli et al., 2014;Ge et al., 2016;Wang et al., 2017;Heidari et al., 2018) and literature review (Tang, 2006a;Tang and Musa, 2011;Fan and Stevenson, 2018). ...
Purpose
The purpose of this paper is to explore the relationship between various risk management strategies and risk management practices in order to design and hence enact a suitable supply chain risk mitigation (RM) plan. Additionally, this study proposes a hierarchical framework to explain the mutual relationship between supply chain risk management (SCRM) practices and strategies by considering the underlying dimensions between them.
Design/methodology/approach
An amalgamation of systematic literature analysis (SLA) and correspondence analysis (CA) has been performed to develop the conceptual framework. A real-life case of Indian petroleum supply chain has been considered to validate and explain the proposed model.
Findings
The results reveal three underlying dimensions, which associate the relationship between RM strategies. They are, risk adaptability of SC managers with a variance of 34.71% , followed by resource capability of the firm and the degree of sophistication of RM practices, with variances of 27.72 and 20.35% , respectively. Risk avoidance strategy comprises of practices such as supplier evaluation, technology adaption, flexible process and information security . On the other extreme, the risk sharing strategy includes revenue sharing, insurance, collaboration, public–private partnership and so on as essential RM practices.
Research limitations/implications
The study not only focuses on the distinction between RM strategies and practices, which were used interchangeably in the prior literature, but also provides an association between the same by exploring the underlying dimensions. These underlying dimensions perform a crucial role while developing a risk management plan. This study explicitly focuses on the RM step of SCRM process. Pre and post risk mitigation phases of SCRM process, such as risk assessment and risk monitoring, are beyond the scope of the current research.
Originality/value
The paper develops a framework for mapping various RM strategies with their corresponding practices by considering the Indian petroleum supply chain as a viable case study. Various theoretical and business implications are derived in the context of the developing country.
... Furthermore, when organizations only do emphasize on the problems related to the system within them, it leads them towards the negative spillover effects which happen due to the unacceptable performance its supply chain partners regarding the environment. It can be elaborated by an example of small supplier who do follow the poor standards and have poor environmental performance and potentially influence the corporate image of a big organization in the same supply chain (Christmann & Taylor, 2001;Cousins et al., 2004;Abdulrasheed, 2017). Thus, it can be stated that organizations must focus on internal and external channels for positive improvement on the impact they are exerting on the environment. ...
... A cursory investigation into academic supply chain risk management (SCRM) highlights a lack of tested empirical case studies within the literary domain as the few available have concentrated mainly on conceptual and descriptive analysis using risk models that are still at the early stages of development [15], [6]. Some authors relied mainly on speculative assumptions [16], [7]. Others focused on the risk assessment phase of the risk management spectrum with little or no contextual risk analysis given that risk is context-dependent [17]. ...
This paper discusses the risk mitigation strategies of some Nigerian companies that make and/or import and distribute their products in the North Eastern part of the country where the Boko Haram (BH) religious insurgency has been very active. The aim of the study is to understand how some of the affected companies adopted mitigating strategies to remain resilient in the region during the peak of the Boko Haram insurgency (between 2012 and 2015). A secondary aim of this study is to add to the body of knowledge on supply chain risk management practices in a developing economy. A qualitative research methodology involving case studies of four companies operating in the region was adopted. The findings indicate the sectional risk mitigating strategies adopted by the companies to contain the disruptions included a combination of the various options of risk avoidance, retention, reduction and transfer. Based on the findings obtained from the study, there is the need for companies to consider the conceptualization and implementation of supply chain risk management structure, policies and processes to guide against any form of risk in their operating areas.
... The failure to successfully manage risk in supply chains not only creates a negative impact on organisations, such as, sharp downward trend in share prices, but also creates a clash among the stakeholders (Hendricks and Singhal 2005). In fact, this failure to effectively manage risks can reduce product quality, damage property and equipment, effect the reputation in the eyes of customers, suppliers and the wider public, and delivery delays (Cousins, Lamming, and Bowen 2004). ...
In the broad sphere of Operations Management, Supply Chain Risk Management (SCRM) is a significant area of interest for both academics and practitioners. As SCRM has transitioned from an emerging topic to a growing research area, there is a need to review existing literature in order to ascertain development in this area. There are many literature reviews on this topic, however, there is a lack of an extensive review using network analysis and meta-analysis within SCRM context including ripple effect. To address this gap, we performed a review of 2564 articles published in peer-reviewed academic journals from 1976 to December 2018. First, we apply a network analysis tool on 2564 articles and identify emerging research clusters. Second, to conduct meta-analysis, we collated empirical results from the studies identified. Of those 2564 articles, 42 studies were empirical in nature including 29 studies that used a range of different constructs with appropriate correlation values required for performing meta-analysis. Through this study, we contribute to the literature on SCRM by discussing the challenges of current research, but more importantly, by identifying and proposing five research clusters and future research directions. Finally, the paper acknowledges the theoretical contribution, the limitations of this study, and suggests further research directions.
... It has been suggested that the drive towards more efficient supply chains has caused them to be more vulnerable to disruptions (Engardio, 2001;Christopher and Lee, 2004;Jüttner, 2005). There are studies showing that proper management of supply chain risks can significantly affect corporate profits (Cousins et al., 2004;Hendricks and Singhal, 2005). Supply chain risk management (SCRM) has recently achieved increasing attention from both academics and practitioners (Tang, 2006;Wu et al., 2013;Ghadge et al., 2012). ...
In today's rapidly changing world, supply chains are confronted with various risks. Research on supply chain risk management (SCRM) is still immature and of increasing importance. Different risk factors and management tools have been identified and studied. At the same time, corruption has been widely studied from the perspective of economy, politics, culture and so on, but research on corruption from the perspective of the supply chain is largely ignored. In this paper, we review relevant literature and propose a conceptual framework for managing corruption risk in supply chains. Case study research and system dynamics modeling are proposed to be applied in our future research to understand and manage corruption risk in supply chain.
... A number of representations illustrate how different firms show their reaction to corporate social responsibility (CSR) and SCM and all the way through from beginning to end. [22][23]. ...
The sustainability in Supply Chain Management (SCM) of the private sector is important to be considered as this sector is not owned or operated by the government. The aim of this research is to forecast the future of supply chain management within the private companies in the United Arab Emirates (UAE). The research study was conducted in five different private companies including; property management, retail stores, beverages, banking sector and construction firm. This qualitative study was conducted to highlight several approaches that are adopted by the organizations when dealing with internal and external hurdles and openers to achieve sustainable supply chain management in private sectors.
Then the data from semi structured interviews is used to draw the organizational structure approach to the supply chain management. The research therefore met its results either get the support or limitations lay inside or outside an organization and developing a structure to categorize organizations approaches to achieve the sustainability of supply chain management.
Supply chain risk and resilience have been conceived, in the main, in terms of identifying types and sources of risk, the likelihood and impact of them being realised into losses, and the supply chain’s ability to plan for, mitigate and respond in the event of a disruption to return to a prior ‘normal’ state. An economic, focal-firm perspective has dominated SCM research. Supply chain risks arise from malicious and unintended causes. Supply chain resilience can be robustness, agility or adaptive resilience occurring at micro, meso and macro levels. Supply network risk management process involves mapping the supply network, identifying risks and their location, assessing those risks, developing a risk position and scenarios, forming a collaborative supply network strategy and implementing that strategy. Dynamic, complex, contemporary, global challenges require new approaches to supply chain risk and resilience. Five themes are proposed for the future of supply chain risk and resilience research - risk and resilience with increasing supply complexity, collaborative approaches to risk and resilience, supply market risk and resilience, crisis preparation and new styles of leadership for risk and resilience.
Global supply chains have delivered many benefits for consumers and firms. At the same time, they have become so integral to business that disruptions due to natural or man-made disasters can lead to major shortages in components and final products. Concurrently, social, environmental and ethical problems have arisen and continue to persist, despite government, private sector and nongovernmental efforts to address them. What are effective methods for global firms, or buyers, to gain an understanding of social and environmental problems in supply chains and to address them? We examine strategies using a sense and response framework, and find various approaches within this framework to be associated with improved performance. In particular, research suggests that using a collaborative, proactive approach with suppliers and providing meaningful incentives can be effective. There exists an opportunity to cascade these efforts to second tier suppliers and beyond, where some of the greatest impacts and opportunities to affect change lie.
As discussed in Chap. 1 by Bouchery et al. (Sustainable supply chains: introduction. In: Bouchery Y, Corbett CJ, Fransoo JC (eds) Sustainable supply chains: a research-based textbook on operations and strategy. Springer, Cham, 2023), improving supply chain responsibility is not only seen as a way to mitigate a variety of risks and meet regulations, but also as a means to increase profits, either by saving costs, growing revenues via positive brand image, or doing both. In this chapter, we discuss supply chain practices associated with improved social, environmental, and in several cases, economic performance. We discuss how leading firms are complementing compliance programs, which remain important, with an increased emphasis on building shared value for various actors along the value chain.
The agriculture industry is facing mounting enforcement to produce more food to nourish a growing population while simultaneously mitigating its environmental footprint. In response, the use of internet of things (IoT) technologies in agriculture has emerged as a promising approach to monitoring and improving the supply chain's environmental performance. This chapter provides a comprehensive overview of the use of IoT technologies in the context of environmental monitoring in agricultural supply chains. It begins by introducing the concept of environmental performance in agriculture, its importance, and its challenges. The chapter then explains the basics of IoT technology and how it can be used to monitor and track the environmental performance in agricultural supply chains. The chapter also discusses the benefits and challenges of IoT technologies implementation. Overall, by leveraging the power of IoT, it is possible to enhance sustainability and efficiency in food production, while also reducing environmental impact.
Purpose
This paper discloses the risk management response strategies and the perceived effectiveness of the strategies employed by companies operating within manufacturing clusters in Puerto Rico from 2016 until 2020, the second year of the coronavirus disease 2019 (COVID-19) pandemic.
Design/methodology/approach
The research design consists of questionnaire-based survey responses from companies belonging to manufacturing clusters, followed by semi-structured interviews and secondary sources of information.
Findings
The results reveal the risk responses used to manage specific risk types. Albeit respondents' dependency on an assortment of company-centric and cluster-bound risk response strategies, the perception is that the former is more effective when adequate local sources are available and the latter when the cluster has strong interconnectedness among the cluster's members.
Research limitations/implications
Furthermore, there is a generalized belief that long-term cluster-bound strategies are required to complement individual companies' overall risk management strategies.
Originality/value
This paper demonstrated that due to the volatility, uncertainty, complexity and ambiguity (VUCA) nature of the Caribbean region, mixed risk management might result in better and more favorable long-term performance.
Supplier selection is the process by which companies identify, evaluate, and contract suppliers. The supplier selection process deploys the enormous amount of financial resources of a company and plays a vital role in the success of any company. The main purpose of the supplier selection process is to reduce purchasing risk, increase overall value to the buyer and fosters close and long-term relationships between buyer and supplier. The VIKOR system changed into advanced to improve the various standards of complex systems. It determines the compromise ranking listing and the compromise solution received by means of the preliminary (given) weights. This approach is from an opportunity set in the presence of conflicting standards Focuses on ranking and choice. It introduces a multi-criterion ranking index primarily based on a particular measure of-proximity‖ to the-fine‖ solution. The purpose of this take a look at is to extend the VIKOR technique for selection-making troubles with c program language period numbers. The ranking of the prolonged VIKOR approach is acquired by comparing the interval numbers and to make comparisons between the periods, the selection maker's self-assurance is fixed. Finally, more than a few instance illustrates and clarifies the key conclusions made on this paper, which we used the Vigor method for the following paper. In this paper we used VIKOR for ranking the VIKOR method is the most ideal solution Short-distance and Alternative The solution with the longest distance from the solution Determines, but the comparison of these distances Does not consider importance.
Contemporary supply chain (SC) seems to be more susceptible to different risks and disruptions than ever. Almost all industries have seen increased competitive pressure in the business environment. This, high risk vulnerable, environment has compelled firms to make their intra firm business and inter firm SCs more risk preventive. In this tough business environment, the ultimate aspiration of managers is obviously to develop efficient risk mitigation strategy. However, risk mitigation is costly which necessitates firms to identify the most probable and critical risks that might be happen to their particular SC, before engaged in expensive actions, and then they can be able to prepare contingency plan to tackle them effectively. Therefore identifying specific risks and ways of managing the same in specific industry/firm and strategy is crucial. In this paper, we relate SC risks to strategy types: defender, prospector and innovator. We relate the SC risks reported in literature to these three strategy types. Later we relate 'trust' types to risk sharing and term of relationship among SC partners. We then plan to conduct an empirical investigation to verify the framework presented in this paper.
The objectives of this study are to explore the effects of disruption events on the manufacturing supply chain and investigate the strategies to minimise the impact of disruption events. A survey of professionals involved in supply chain and have dealt with disruptions in the supply chain was carried out with the aid of a well-structured questionnaire. A mean item score was carried out and the findings from the analysis of the effect of catastrophic events to manufacturing supply chain revealed death and injuries. Furthermore, Creation of risk management that include top leadership and strong integration/teamwork, using information technology are the main strategies to minimise the impacts of catastrophic events on manufacturing supply chain. The study recommended that organisations in the manufacturing industry can use the strategies to minimise the impact of future catastrophic events on Manufacturing supply chain for creating resilient manufacturing industry.
Over many years, researchers from social science and management have argued that to develop sufficient trust between potential supply chain partners, a useful starting point is to develop strategies for encouraging perceptions of trustworthiness. Conversely, marketing theorists and practitioners have called for strategies by industry that aims to reduce risk perceptions for successful relationships. However, it is not clear in the literature which perception is more significant; trust or risk and from which perspective. Identification of such factors plays an important role in supply chain design and operation to decide whether the supply chain members should strive to develop trust perceptions or reduce risk perceptions in relationship. This paper has identified the common perspectives of trust and risk perception to address the issue of which perception is more significant from each perspective. Results of a survey of supply chain member’s trust and risk perceptions of the printing and packaging industry in the United Arab Emirates are presented.
Nowadays, more organisations are focusing on how to improve their environmental performance, partly driven by recent regulations in this area. This means that green supply chain management plays an important role over traditional supply chain management. Companies could gain competitive advantage through the proper management of their supply chain activities, for example, purchasing management. In fact, organisations can now generate more business opportunities than their competitors by addressing environmental management successfully. More specifically, it has been identified that implementation of green innovation can become a company’s order winner. However, not many studies have investigated the relationships between the greening of suppliers, green innovation, environmental performance and competitive advantage. The objective of this article is to propose a conceptual model, developed from a review of relevant literature and performance indicators, and to identify how future research can address these issues.
Purpose – This paper explores how the procurement function initiates and develops relationships with social
enterprises that are intended to induce social impact in the supply networks of for-profit firms.
Design/methodology/approach – The paper utilises an in-depth case study involving a focal company,
first-tier supplier, nongovernmental organisation and four social enterprises.
Findings – Tension mitigation that arises between social and commercial logics occurs via individual
relationships through building trust, dependency manipulation, monitoring and supplier development
activities. Deeper insights are revealed when triadic relationships are viewed within a quadratic relationship
configuration that enables better capturing the essence of supply networks.
Research limitations/implications – The paper is based on a single case study, limiting empirical
generalisability. Future research could consider multiple case studies to reveal different types of relationship
configurations that induce social impact in supply networks.
Practical implications – Societal goals can be met while maintaining supply network economic performance
if procurement involves a trusted third party such as a nongovernmental organisation and helps to develop
social enterprises as suppliers.
Originality/value – The paper contributes to the sustainable supply chain management literature by
reporting on a novel procurement approach for enhancing social sustainability through cooperation with social
enterprises. The paper also contributes to supply network theory by demonstrating how exploring quadratic
relationships can reveal novel relationship configurations within supply networks.
Keywords Social procurement, Social impact, Social enterprises, Supply network, Quadratic relationship
The objective of the current study is to investigate whether internal integration (II) is significantly moderated purchase social responsibility (PSR), organizational learning (OL), and purchasing performance (PP) in the Indonesian food industry. To this end, data from 290 supply chain (SC) managers working in the Indonesian food industry were collected by using a simple random sampling technique, which yielded a 93.54% response rate. To analyze the results, Smart PLS 3 software and structural equation modeling (SEM) was employed. The SEM findings showed a positive and significant association of PSR and OL with PP. Furthermore, II did not have a moderating effect in relation to PSR, OL, and PP. The findings suggest that PSR adoption could affect operations for both buyers and suppliers. Furthermore, organizations should realize the effect of PSR practices besides the effect of purchasing practices on PP. This study contributes a body of knowledge in the way of empirical findings. Research limitations and future directions are also formulated.
Purpose
This paper aims to investigate the impact of monitoring and mentoring strategies on sustainability diffusion within supply networks through focal companies and how suppliers engage in implementing these strategies.
Design/methodology/approach
The paper reports on three in-depth case studies conducted with focal companies and their suppliers. An interaction approach was adopted to guide the analysis of focal companies’ strategies for implementing and diffusing sustainability in supply networks.
Findings
The monitoring strategy impacts sustainability diffusion at the dyadic level, while the mentoring strategy is a prerequisite for the diffusion of sustainability at the supply network level. The findings suggest that coupling monitoring with mentoring can lead to diffusion beyond first-tier suppliers. Interaction intensity, supplier proactiveness and mindset change facilitate sustainability diffusion in supply networks.
Research limitations/implications
The authors suggest more research be conducted on specific practices within monitoring and mentoring, as some of these imply very different levels of commitment and interaction.
Practical implications
The paper suggests that in the future, companies will be increasingly called upon to adopt cooperative initiatives to enable the diffusion of sustainability in supply networks.
Originality/value
The contribution of the paper lies in its identification of the impacts of monitoring and mentoring strategies on the diffusion of sustainability in networks, revealing different supplier engagement in these strategies, which may foster or hinder sustainability diffusion.
Purpose
Many modern firms strive to become sustainable. To this end, they are required to improve not only their own environmental and social performance but also the performance of their suppliers. Building on population ecology theory, we explore how buyers' exposure to supplier sustainability risk and their subsequent risk management strategies at the buyer–supplier dyad level can lead to adherence to sustainability by the supplier populations.
Design/methodology/approach
We rely on a bottom-up research design, in which the actions of buyers within buyer–supplier dyads lead to population-wide changes on the supplier side. Specifically, we use experimental data on managing sustainability risk to build an agent-based simulation model and assess the effect of evolutionary processes on the presence of sustainable/unsustainable business practices in the supplier population.
Findings
Our findings suggest that buyers' cumulative actions in managing sustainability risk do not necessarily result in effective population-wide improvements (i.e. at a high rate and to a high degree). For example, in high risk impact conditions, the buyer population is usually able to decrease the population level risk in a long run, but they would need both power and resources for quickly achieving such improved outcomes. Importantly, this positive change, in most cases, is due to the fact that the buyer population selects out the suppliers with high probability of misconduct (i.e. decreased supplier population density).
Originality/value
Drawing on the organizational population ecology theory, we explore when, to what degree and how quickly the buyers' cumulative efforts can lead to population-wide changes in the level of supplier sustainability risk, as well as the composition and density of supplier population. Methodologically, this paper is one of the first studies which use a combination of experimental data and agent-based modeling to offer more valuable insights on supply networks.
In this research, the quantification of supply chain risk has been investigated from the perspectives of the buyer. The objective of this research article is to investigate numerous risks that affect the aviation supply chain (ASC) performance and to develop a proposed framework to measure the overall supply chain risk index by considering the importance of each risk. Aviation industry is at higher level of risks, that's why the researchers have identified the most serious 10 supply chain risks (SCRs) in this industry. In order to tackle with this key problem, an indexing system for comprehensive risk evaluation has been developed, which captures the ratings and weights for risk factors, namely occurrence probability, severity of impact, and ease of mitigation, encountered by a holistic supply chain in a given scenario. In this context, to quantify the risks in a supply chain, the researchers have formulated as a fuzzy multi-attribute group decision making (FMAGDM) model, based on fuzzy FMEA and extended VIKOR methods to analyze the most feasible solution according to the selected risk parameters as per situation. The results of the present study depicted that disruption risk, financial risk, and legal/political regulations are the most significant and typical risk (ASC). A practical case study in an aviation sector of Pakistan is piloted to check the practicability of the suggested methodology. Finally, the effectiveness of the proposed model has been discussed by ranking risk alternatives in descending order. In order to check the robustness of results, a sensitivity analysis has been conducted.
The purpose of this paper is to evaluate the critical criteria that are influencing the successful implementation of sustainable supply chain practices (SSCP) in the lean‐agile manufacturing firm. From the systematic literature review and field professionals' opinion, various criteria that are influencing sustainable supply chain were identified. Data were collected from 16 experts and analysed by an integrated approach of “interpretive structural modeling (ISM) and analytic network process (ANP).” ISM methodology was utilized to get a hierarchical relationship between all criteria. Further, the input to the ANP matrices was taken from the output of ISM, and three organizations that differ in their principle of operation were ranked to find out the extent of implementation of SSCP in the Indian context. The obtained results indicate that “Information technology‐enabled system support (ITS), SC member's awareness and literacy (SAL), Societal issues (SIS), and Scarcity of natural resources (SNR)” were most significant constructs for successful implementation of SSCP for the case organizations.
This study tested a model of firm risk-return relations in which risk was conceptualized in terms of downside outcomes. Drawing on the behavioral theory of the firm, we developed a set of hypotheses involving downside risk, return, and organizational slack, The hypothesized risk and return relations were tested using both downside risk and the conventional standard deviation of returns. The results indicate downside risk results in improved subsequent performance, Performance shows a negative relation with subsequent downside risk.
Drawing on the resource-based view of the firm, we posited that environmental performance and economic performance are positively linked and that industry growth moderates the relationship, with the returns to environmental performance higher in high-growth industries. We tested these hypotheses with an analysis of 243 firms over two years, using independently developed environmental ratings. Results indicate that "it pays to be green" and that this relationship strengthens with industry growth. We conclude by highlighting the study's academic and managerial implications, making special reference to the social issues in management literature. We wish to express our appreciation to the Franklin Research and Development Corporation for allowing us to use their proprietary database and to Roger Chope and Steven Matsunaga for assistance with methodological issues. We also thank Thomas Dean, Neil Fargher, David Levy, John Mahon, Alan Meyer, Peter Mills, Richard Mowday, and the anonymous reviewers for helpful comments.
Despite there being a considerable literature concerning risk in organizational buyer behaviour, necessary reviews of the area are not easy to find. This article attempts to organize, describe and appraise the current literature with a view to gaining a critical perspective for the benefit of future researchers. The discussion begins with the way managers view risk and factors which affect that perception and then considers the role of various risk reducing strategies employed in the organizational setting. Comments are made on the state of the literature and the further research required.
I. Risk management: a powerful tool -- II. Defining and assessing risk -- III. Managing corporate risk -- IV. Product and service problems: operations and production risk -- V. Purchasing problems -- VI. Managing health and safety -- VII. Preventing environmental damage -- VIII. Protecting against fire -- IX. Maintaining security -- X. Pre-empting fraud -- XI. Staying financially healthy -- XII. Avoiding IT disaster -- XIII. Liability, legal risks and intellectual property -- XIV. Market leadership through risk management -- XV. People risks and corporate ethics -- XVI. Contingency planning, crisis management and business continuity -- XVII. Introducing a risk management system -- Minimizing risk in major projects -- XIX. What risks will the future bring? -- Appendix
In a modern, well‐managed firm, the purchasing function can and should contribute to the firm's competitive goals. This article discusses how purchasing can evolve into the role of a strategic contributor through four progressive stages.
Through a series of in‐depth interviews, the authors discovered that merely doing a good job of purchasing does not make the purchasing function a strategic contributor. However, those purchasing departments that have evolved to become strategic contributors to the firm's competitive goals have found the professional and financial rewards to be substantial.
Historically. management theory has ignored the constraints imposed by the biophysical (natural) environment. Building upon resource-based theory, this article attempts to fill this void by proposing a natural-resource-based view of the firm-a theory of competitive advantage based upon the firm's relationship to the natural environment. It is composed of three interconnected strategies: pollution prevention, product stewardship, and sustainable development. Propositions are advanced for each of these strategies regarding key resource requirements and their contributions to sustained competitive advantage.
When a buyer perceives risk in a purchase he can pursue different strategies of risk resolution. This article presents research findings which indicate that consumers have preferences for different methods of risk reduction associated with various types of loss.
Is industrial pollution reduction solely a matter of applying technical solutions to technical problems, or do organizational strategies and human factors also play an important part? In 1991 the US Environmental Protection Agency began collecting data on organizational strategies in pollution control as part of its Toxic Release Inventory database. An exploratory analysis of the 1991–1992 Toxic Release Inventory data revealed evidence that internally based, socially driven organizational strategies such as employee participation can have a dramatic impact on pollution reduction. The results are reported here of the second phase of this research: the approach is broadened to define general ‘internal’ versus ‘external’ strategies, and ‘social’ versus ‘technical’ approaches. There is strong evidence that the combination of internal and external strategies is superior to either alone; there is even stronger evidence that a socio-technical approach is better than either alone, and still stronger support for a combination of all of these criteria.
The mechanisms are examined by which environmentally informed business practices and technologies may diffuse through industry as a result of the ‘greening’ of purchasing and supply. The efforts of official bodies in the UK to raise environmental awareness among industrial purchasers are reviewed. It is then argued that the supply chain model is an important way of interpreting the industrial landscape from a green perspective and that it is in some ways a more hopeful and positive starting point for achieving industrial transformation. The results of an analysis of some UK companies practices in using their purchasing policies to ‘green’ their supply chains are presented and opportunities for further research indicated.
This paper investigates the issues for purchasing and supply chain managers in the context of environmentally‐sound management.
The discussion begins with an analysis of relevant consumer attitudes, legislation and concepts in environmentally‐sound management (life‐cycle analysis, waste management, product stewardship, etc.), linking them to supply‐chain management practices such as vendor assessment, total quality management, lean supply and collaborative supply strategies. In each case, parallels are drawn between established practice and new imperatives that require innovative solutions from managers.
The paper then explores the results of fresh field research with five major UK companies, identifying the different ways in which the challenges introduced above are being faced, and adding some extra perspectives to the debate already covered. The discussion concludes with a projection of common issues and ideas for areas of supply chain management that might profit from better environmentally‐sound approaches.
This paper explores the relation between decision theoretic conceptions of risk and the conceptions held by executives. It considers recent studies of risk attitudes and behavior among managers against the background of conceptions of risk derived from theories of choice. We conclude that managers take risks and exhibit risk preferences, but the processes that generate those observables are somewhat removed from the classical processes of choosing from among alternative actions in terms of the mean (expected value) and variance (risk) of the probability distributions over possible outcomes. We identify three major ways in which the conceptions of risk and risk taking held by these managers lead to orientations to risk that are different from what might be expected from a decision theory perspective: Managers are quite insensitive to estimates of the probabilities of possible outcomes; their decisions are particularly affected by the way their attention is focused on critical performance targets; and they make a sharp distinction between taking risks and gambling. These differences, along with closely related observations drawn from other studies of individual and organizational choice, indicate that the behavioral phenomenon of risk taking in organizational settings will be imperfectly understood within a classical conception of risk.
In the last few years ‘green’ movements, institutions and governments have forced many companies to improve their environmental performance. As a consequence of this growing interest in the environment, many firms established integrated relationships with their suppliers to design new ‘green’ products. Unfortunately, no model has been suggested to support the decision-maker in the selection of the most effective supplier from an environmental viewpoint. Hence, the objective of the paper is to design a conceptual approach that first identifies measures for assessing a supplier's environmental performance and, secondly, suggests effective techniques for developing the supplier selection procedure according to an environmental viewpoint.
To develop an empirically based operational definition of strategic purchasing, a definition was first developed from the current literature. The definition was tested by first developing a model based on the current literature in the strategic management and strategic purchasing literature. The model resulted in four hypotheses. To test the hypotheses, survey responses from 739 firms were analyzed. Each of the following factors were positively related to the level of strategic purchasing as defined from the literature: status of the purchasing function; purchasing knowledge and skills; purchasing's willingness to take risks, and; purchasing resources. Therefore, it was concluded that the definition was valid and could include the four underlying characteristics.
The Grossman-Shiller generalisation of Breeden's consumption-based asset pricing model is further generalised to the class of semimartingale stochastic processes for the arguments of marginal utility and share prices. An alternative representation of Breeden's multicommodity equation is also developed. This representation explicitly involves the coefficients of relative risk aversion with respect to prices.
Sumario: Environmental challenges and environmental management (Where are we now and where are we going?. The principles and tools of environmental management) -- Company case studies (Taking a systems approach to environmental management: the case of IBM UK. A commitment to environmental improvement: the case of BT. Life-cycle environmental management and product innovation: the case of the Volkswagen Audi Group. Pushing forward the frontiers: environmental strategies at the Body Shop International) -- Case studies of environmental issues (Management systems and environmental disasters: the cases of the Bhopal catastrophe and the Alaskan oil. Environmental strategies of leading UK supermarket chains. Environmental policy, legislation and business strategy: the case of the transport sector. Barriers to the improvement of environmental performance: the case of the SME sector. Environmental management at the regional level: the case of the Avoca-Avonmore Catchment Conversion Project and IDAS Trout Ltd) -- Conclusions: Which way forward? -- Exercises
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