Value-oriented supply chain risk management : you get what you expect

Trkman, Peter (author), Valadares de Oliveira, Marcos Paulo (author), McCormack, Kevin P. (author)

Purpose: With the globalisation of supply chains the importance of supply chain risk management (‘SCRM’) has grown considerably. Still, although both researchers and practitioners fully agree on its importance, most companies pay very limited attention to SCRM. This exploratory paper uses expectation confirmation theory to investigate the reasons for that. Design/methodology/approach: We use a combination of 6 mini case studies and a survey of 89 companies to show how a different attitude towards SCRM can lead to greater value from SCRM efforts. Findings: In line with the expectation confirmation theory we stipulate that the primary reason is in companies’ attitudes towards SCRM. Their main expectation is risk avoidance and not value generation. In such a case, even ‘successful’ SCRM programmes merely confirm such an expectation (e.g. no risk materialised or with a limited impact) and the company continues to avoid risk while limiting the resources for SCRM. It is only when the expected benefit of SCRM is not solely risk avoidance but mainly value generation that increased attention can be expected over time. Research limitations/implications: The paper is exploratory in nature. Some of the stipulations in the theoretical part were not fully investigated in the quantitative part. The survey had a relatively small sample and a low response rate. The constructs used in the survey did not use previously validated questionnaires. Practical implications: Companies should focus on changing expectations of their managers and employees regarding SCRM and emphasize the value potentially generated by SCRM. Originality/value: Use of expectation confirmation theory to investigate the reasons for limited attention to SCRM, to improve the understanding of attitude towards SCRM and to open many important areas for further research

• Language: English
• Keywords: supply, supply chain, inventories, management
• Work type: Article
• Typology: 1.01 - Original Scientific Article
• Organization: EF - School of Economics and Business
• Publication version: Author Accepted Manuscript
• Year: 2016
• Number of pages: Str. 1061-1083
• Numbering: Vol.116, iss. 5
• PID: 20.500.12556/RUL-115196
• UDC: 339.13
• ISSN on article: 0263-5577
• DOI: 10.1108/IMDS-09-2015-0368
• COBISS.SI-ID: 23090150
• Publication date in RUL: 17.04.2020

Record is a part of a journal

• Title: Industrial management + data systems
• Shortened title: Ind. manage. data syst.
• Publisher: Embankment Press Limited
• ISSN: 0263-5577
• COBISS.SI-ID: 25605376

Licences

• License: CC BY-NC 4.0, Creative Commons Attribution-NonCommercial 4.0 International
• Link: http://creativecommons.org/licenses/by-nc/4.0/
• Description: A creative commons license that bans commercial use, but the users don’t have to license their derivative works on the same terms.
• Licensing start date: 17.04.2020

Secondary language

• Language: Slovenian
• Keywords: ponudba, preskrbovalne verige, zaloge, management

Projects

• Funder: ARRS - Slovenian Research Agency
• Project number: J5-6816
• Name: Prenova poslovanja - od poslovnih modelov do inovativnih procesov