A review of supply chain risk management: definition, theory, and research agenda

COVID-19 disruptions and Norwegian food and pharmaceutical supply chains: Insights into supply chain risk management, resilience, and reliability

The purpose of this study is to investigate how the COVID-19 crisis affected delivery security and firms' preparedness and responses in Norway. Investigations focus on supply chains which were critical for maintaining the supply of essential goods when large parts of society closed down. This includes four firms belonging to food and pharmaceutical industries, representing different parts of the respective supply chains, and covering imports, exports, domestic distribution, and home-delivery services. The originality of this article is that we employ theoretical models on supply chain risk management, resilience and reliability in conjunction, where these are usually used separately. Recognizing links, overlaps, and complementarity between the models, and using them step-by-step, we exploit synergies that enable more comprehensive assessments of strengths and weaknesses in firms' supply chains, covering gaps, prioritizing between improvement areas, and collecting input towards detailed, actionable risk mitigation actions. Investigations build on semi-structured interviews, systematically covering the formative elements for each of the models. Using the models in conjunction, we compare the firms and identify differences, similarities, strengths, and weaknesses in the consequences of pandemic-related disruptions and how firms approached the challenges. The main challenges for the firms were sudden demand changes early in the pandemic. While the firms had minor differences, their pre-pandemic contingency plans were generally not actionable or detailed enough, nor prepared for the pandemic's longevity. Therefore, more detailed and long-term guidelines are desirable, noting the importance and interrelationships of elements of supply chain risk management, resilience, and reliability. A common feature for all firms, and crucial for handling disruptions, is the importance of good and long-term relationships with upstream and downstream supply chain partners and the need for improving contingency plans and future resilience.

Creating resilient supply chains through a culture of measuring

The COVID-19 pandemic and the ensuing disruptions to global supply chains have brought risk management to the fore. While guidance on risk management is proliferating, an area that is largely untapped is risk measurement. The pandemic has made us realize the criticality of risk measurement and the need to develop a culture of continuous measuring. Based on our interviews with purchasing and supply management (PSM) professionals about how they measure and manage risk, we offer a framework integrating how to rethink risk measurement, how to continuously measure risk, how to translate measurement into action, and how to establish a culture of continuous measuring. It captures a shift in mindset that is needed to truly take risk measurement to the next level. Once this is accomplished, it can help PSM professionals build more resilient supply chains in a post-pandemic world, and serve as a foundation for PSM scholars to provide further guidance enabling practitioners to “walk the talk” when it comes to risk management.

Keeping goods moving in the wake of a disaster: a qualitative study of intermodal transport

Purpose

This paper examines what facilitates the swift reconfiguration of freight movements across transport modes in the wake of a major disaster.

Design/methodology/approach

A qualitative research approach focussing on the New Zealand (NZ) domestic freight transport operations in the wake of the 2016 Kaikōura earthquake is used with data collected through 19 interviews with 27 informants. The interviews are thematically analysed by using the framework method.

Findings

The paper provides rich and detailed descriptions of the ability of a freight transport system to recover from a disaster through rapid modal shifts. This paper identifies nine factors enabling modular transport operations and highlights the critical role of physical, digital, operational and inter-organisational interconnectivity in the aftermath of a disaster.

Originality/value

Although the management of freight disruptions has become a prevalent topic not only in industry and policy-making circles, but also in the academic literature, qualitative research focussing on the ability of commercial freight systems to adapt and recover from a disaster through rapid modal shifts is limited. This qualitative study sheds light on the mechanisms underlying the continuity of freight operations in the wake of a disaster and provides a comprehensive understanding of modular transport operations and the ability of freight systems to keep goods moving.

Agility and digitalization: why strategic agility is a success factor for mastering digitalization – evidence from Industry 4.0 implementations across a supply chain

Purpose

This paper addresses the emergence of strategic agility as adaptive capability to face the need to adapt to a constantly changing environment. Special emphasis is paid to governance mechanisms as a microfoundation of dynamic capabilities, investigating the dynamics and outcome in regards to the digitalization of supply chains and its socio-economic relations of its members.

Design/methodology/approach

A multiple-case study method is applied to explain the impact of a digitalization initiative in the form of an I4.0 implementation in a supply chain context. Building on qualitative in-depth interviews of experts in managerial positions, 16 cases from the manufacturing industry involving an I4.0 implementation across the supply chain were analyzed. Based on a conceptual design science approach, the CIMO logic (context, intervention, mechanisms and outcome) framework is used to investigate the interplay between agility as a dynamic capability and governance mechanisms.

Findings

The studied cases demonstrate an intensification of synergistic combinations of inter-firm resources to manage digitalization across the supply chain (SC). With the implementation of I4.0, competitive advantage along the SC takes higher priority over the competitive advantage in the individual or dyadic perspective. Strategic agility as a dynamic capability to cope with and adapt to the changing environment is hereby crucial emphasizing relational SC governance (SCG) as essential as a microfoundation to adjust the structure and management of SCs. Relationships, which allow competitive advantage as a SC balance out traditional power mechanisms within the SC hierarchy. Trust, collaboration and flexibility, aligned with common incentives in generating competitive advantages enable the SCs to mitigate uncertainty and risk while preventing opportunistic behavior.

Practical implications

The study offers SCM managers in-depth insights into strategic agility and how to address the recent challenge of digitalization successfully. Identifying crucial dynamics within SCG mechanisms based on first-hand use cases, practical success factors for implementing I4.0 to optimize effectiveness and efficiency can be derived how to structure and manage future SCs.

Originality/value

This paper contributes to the first insights examining the implications of digitalization and the role of strategic agility as a capability to adapt. Investigating the microfoundation of governance within this capability, this research provides insights on the socio-economic level, while discussing specific mechanisms how relationships of SCs evolve proposing relevant insights for future research.

A critical analysis of the integration of blockchain and artificial intelligence for supply chain

The integration between blockchain and artificial intelligence (AI) has gained a lot of attention in recent years, especially since such integration can improve security, efficiency, and productivity of applications in business environments characterised by volatility, uncertainty, complexity, and ambiguity. In particular, supply chain is one of the areas that have been shown to benefit tremendously from blockchain and AI, by enhancing information and process resilience, enabling faster and more cost-efficient delivery of products, and augmenting products' traceability, among others. This paper performs a state-of-the-art review of blockchain and AI in the field of supply chains. More specifically, we sought to answer the following three principal questions: Q1-What are the current studies on the integration of blockchain and AI in supply chain?, Q2-What are the current blockchain and AI use cases in supply chain?, and Q3-What are the potential research directions for future studies involving the integration of blockchain and AI? The analysis performed in this paper has identified relevant research studies that have contributed both conceptually and empirically to the expansion and accumulation of intellectual wealth in the supply chain discipline through the integration of blockchain and AI.

A Framework for Smart Supply Chain Risk Assessment

This research provides a framework for assessing risks in smart supply chains using a quantitative approach. This study identifies the risk factors in smart supply chains based on an extensive literature review and interviews with professionals. By analyzing different concepts of the previous frameworks, a new one is proposed for the smart supply chain. This new framework is applied to the data collected from a survey of Canadian supply chain professionals (n = 56). The authors conducted an exploratory factor analysis to examine the construct validity of the survey results. After evaluating and assessing risks for different smart supply chain risk factors, some constructs were developed. The survey's results point to the most important risk factors for the smart supply chain, prioritized based on their high probabilities and impacts. These include risk of complexity, web application failure, talent shortage, and high-cost risk. The results also show that the most commonly implemented smart technologies in the supply chain sector are bar codes and social media.

Considering IT Trends for Modelling Investments in Supply Chains by Prioritising Digital Twins

Supply chain disruptions and challenges have and will always exist, but preparing in advance and improving resilience for the upcoming consequences should be the utmost important goal. This paper explores trends that affect innovation in the technological sphere of supply chain systems. More precisely, the research is focused on Digital Twin technology applicability through other logistics IT trends and aims to research the pressing issue of ensuring the visibility and resilience of future supply chain systems. The paper’s objective is to produce a conceptual model enabling the investment assessment of the necessary IT resources. Initially, a theoretical confirmation of logistics IT trends’ relevance to supply chain systems was established. After, propositions of Digital Twin technology applications to other logistics IT trends were made, which were divided into corresponding constant multitudes of supply chain systems. Lastly, the conceptual model for the investment assessment of the necessary IT resources was derived in the form of a matrix. It considers 16 parameters for investment assessment and applicability to all companies, regardless of their specifics. It also supports the notion of digital IT competencies’ fundamental importance to the continuous operation of supply chain systems.

Influence of supply chain risk management and its mediating role on supply chain performance: perspectives from an agri-fresh produce

As agropreneurs of fresh fruits and vegetables are important contributors to the economy, supply chain risk management is vital for their survival and growth. Therefore, this study examined the mediating effect of supply chain risk management in reducing the impact of supply chain risks and increasing supply chain performance among small scale agropreneurs in Malaysia. It also evaluated the moderating role that knowledge management plays between supply chain risks and supply chain risk management. SmartPLS 3.0 (PLS-SEM), which uses partial least squares structural equation modelling, was utilised to test the framework. Data from 430 fresh fruit and vegetable agropreneurs in the five most productive Malaysian states were collected using a questionnaire. The results confirmed (1) a negative correlation between supply chain risks and supply chain performance (2) that supply chain risk management mediates the relationship between supply chain risks and supply chain performance, and (3) that knowledge management moderates the relationship between supply chain risks and supply chain performance. Therefore, these findings could help government institutes and agropreneurs associations better appreciate the value of supply chain risk management due to its positive effect on the overall performance of agropreneurships.

NeutroMAS4SCRM : a combined multi-agent system with neutrosophic data analytic hierarchy process framework for supply chain risk management

Effective risk management reaction improves the absorption of critical impacts on supply chains. Supply chain risk (SCR) sources, like control, process, demand, and supply, need to be identified, assessed, and mitigated to make rational decisions immediately. Late detection of a disruptive event can cause delays in handling risk. Since SCRs consist of complex, uncertain, and incomplete information, most of the provided risk assessment mechanisms cannot handle it in real-time. Hence, in this paper, we introduce NeutroMAS4SCRM, a framework incorporating real-time Multi-Agent Systems (MAS) with Neutrosophic Data Analytic Hierarchy Processes to best deal with the complexity, uncertainty, and vagueness of SCR management-related issues and which can hence help decision-makers adopt less risky decisions. In addition, the MAS technology contribution to SCR management is outlined through a comparative study among the most recent studies. In contrast, the proposed MAS for the supply chain is implemented under the JADE agent platform, where the FIPA-ACL-based message content is specified using a dedicated ontology. A simulation-based decision support system is used to assess the cost risk and its harmful effects and determine how well the proposed framework can help companies manage risks efficiently. The simulation has proven to reduce risk costs by about 85% .

Leveraging supply chain disruption orientation for resilience: the roles of supply chain risk management practices and analytics capability

Purpose

Building on the information processing perspective, the authors propose that both internal and external supply chain risk management (SCRM) practices play essential roles in mediating supply chain disruption orientation (SCDO) to exercise an influence on resilience. The authors also put forward analytics capability as an important moderator in the above-mediated relationship.

Design/methodology/approach

The authors collected 170 match-paired questionnaires from Chinese firms to test our model. The authors further interviewed some managers to supplement key quantitative results.

Findings

First, SCDO positively affects resilience via internal and external SCRM practices. Second, the mediating effects of internal and external SCRM practices are stronger when analytics capability is higher. Third, analytics capability positively moderates the positive effect of SCDO on SCRM practices. Meanwhile, it does not moderate the positive effect of SCRM practices on resilience.

Research limitations/implications

Our study contributes to SCRM-related and IT-related literature by considering the content, mediating mechanisms (i.e. internal and external SCRM practices) and boundary conditions (i.e. data analytic capability) of SCDO in shaping resilience in the digital supply chain.

Practical implications

Our study helps remind managers that firms build disruption orientation, develop different SCRM practices and leverage analytics capability to improve resilience amid unexpected and unplanned disruptions.

Originality/value

Our study sheds light on the roles of both internal and external SCRM practices. Furthermore, this research helps explain how SCDO motivates resilience through SCRM practices, particularly for those firms that have higher analytics capability.

Supply chain risk management strategies in normal and abnormal times: policymakers' role in reducing generic medicine shortages

Purpose

This paper links supply chain risk management to medicine supply chains to explore the role of policymakers in employing supply chain risk management strategies (SCRMS) to reduce generic medicine shortages.

Design/methodology/approach

Using secondary data supplemented with primary data, the authors map and compare seven countries' SCRMS for handling shortage risks in their paracetamol supply chains before and during the first two waves of the COVID-19 pandemic.

Findings

Consistent with recent research, the study finds that policymakers had implemented few SCRMS specifically for responding to disruptions caused by COVID-19. However, shortages were largely avoided since multiple strategies for coping with business-as-usual disruptions had been implemented prior to the pandemic. The authors did find that SCRMS implemented during COVID-19 were not always aligned with those implemented pre-pandemic. The authors also found that policymakers played both direct and indirect roles.

Research limitations/implications

Combining longitudinal secondary data with interviews sheds light on how, regardless of the level of preparedness during normal times, SCRMS can be leveraged to avert shortages in abnormal times. However, the problem is highly complex, which warrants further research.

Practical implications

Supply chain professionals and policymakers in the healthcare sector can use the findings when developing preparedness and response plans.

Social implications

The insights developed can help policymakers improve the availability of high-volume generic medicines in (ab)normal times.

Originality/value

The authors contribute to prior SCRM research in two ways. First, the authors operationalize SCRMS in the medicine supply chain context in (ab)normal times, thereby opening avenues for future research on SCRM in this context. Second, the authors develop insights on the role policymakers play and how they directly implement and indirectly influence the adoption of SCRMS. Based on the study findings, the authors develop a framework that captures the diverse roles of policymakers in SCRM.

Risk management in digitalized educational environments: Teachers’ information security awareness levels

With the spread of Information and Communication Technologies (ICT) tools and the Internet, Twenty first century technologies have significantly affected human life, and it has been desired to be obtained continuously. It has become challenging to protect information due to the increase in the methods by which malicious people can get information. As a result, it is crucial to determine people’s awareness levels by revealing the risks and threats to information security. In this context, a study was conducted to show the awareness levels of teachers who come after the family in raising conscious individuals in society. For this purpose, a quantitative research method was adopted for the problem and sub-problems that form the basis of the research. The survey model, one of the research designs used within the framework of the quantitative research method, was used. Information Security Awareness Scale was applied to 394 teachers, and according to the results obtained, it was determined that the information security awareness level of the teachers was moderate. According to the attacks and threats sub-dimension, which includes technical issues, it has been determined that the awareness levels of the teachers are at a medium level. The study results show that female teachers’ information security awareness levels are lower than male teachers. In comparison, the awareness levels of those who received information security awareness training and information technology teachers are higher.

Multi-criteria risk classification to enhance complex supply networks performance

Management of complex supply networks is a fundamental business topic today. Especially in the presence of many and diverse stakeholders, identifying and assessing those risks having a potential negative impact on the performance of supply processes is of utmost importance and, as a result, implementing focused risk management actions is a current lively field of research. The possibility of supporting Supply Chain Risks Management (SCRM) is herein explored from a Multi-Criteria Decision-Making (MCDM)-based perspective. The sorting method ELimination Et Choix Traduisant la REalité (ELECTRE) TRI is proposed as a structural procedure to classify Supply Chain Risks (SCRs) into proper risk classes expressing priority of intervention so as to ease the implementation of prevention and protection measures. This approach is intended to offer structured management insights by means of an immediate identification of the most highly critical risks in a wide set of previously identified SCRs. A real-world case study in the field of the automotive industry is implemented to show the applicability and usefulness of the approach.

Introduction of a Corporate Security Risk Management System: The Experience of Poland

To ensure the economic security of companies, it is necessary to introduce a risk management system based on the use of various tools, especially financial ones. The purpose of the article is to scientifically substantiate the paradigm of integration of the risk management mechanism into the system of economic security in companies on the basis of risk-oriented management. The main study method was an online survey of 50 Polish companies in January–April 2021 using a developed questionnaire consisting of 40 questions. According to the results of the expert survey, it is determined that regardless of the type of economic activity of the enterprise, the main goal of introducing risk-oriented management is to preserve assets and increase the efficiency of financial and economic processes. The introduction of risk-oriented management is perceived as a tool to increase the value of the company and ensure the achievement of strategic goals. Fraud is a significant risk to the state of economic security for modern enterprises. To prevent the fact of fraud, taking into account the specifics of the operation of companies, it is suggested to conduct an annual examination. As a result, the suggested procedure should include an audit (audit of financial statements, forensics, transition to international financial reporting standards, audit of systems and processes), assessment (assessment for audit and reporting in accordance with international financial reporting standards, risk management assessment in accordance with international standards, assessment of the effectiveness of economic security), tax analytics (identification of tax risks, analysis of compliance with tax legislation, tax audit), and a due diligence procedure for investment objects.

Strategic drivers to overcome the impacts of the COVID-19 pandemic: implications for ensuring resilience in supply chains

The recent coronavirus (COVID-19) pandemic has affected the manufacturing industry’s entire supply chain system. It is important to investigate the strategic drivers to deal with the impacts of COVID-19 in the manufacturing industry. Accordingly, this study aims to identify the strategic drivers to overcome the impacts of the COVID-19 pandemic and improve the resiliency of the Bangladeshi footwear industry, an emerging economy. The strategic drivers are identified after reviewing research papers, reports, blogs, and discussions on social media platforms. The main drivers and their respective sub-drivers are finalized by discussing with domain experts. To offer strategic plans for building resiliency, it is crucial to know the importance of the main drivers and sub-drivers; therefore, the best–worst method is applied to determine the priority importance of the strategic drivers. The findings indicate that the top five drivers to defeat the impacts of COVID-19 are “high capability of reconfigurability,” “enhance the relationship with suppliers,” “develop health protocols to continue manufacturing,” “government support through incentives, subsidy, tax rebate, etc.,” and “set a policy to stable material supply”. Based on the findings, this study also provides practical implications with proposed research themes for policymakers and operations managers towards mitigating the impacts of the COVID-19 pandemic. The study’s contribution is unique and important for the footwear supply chain as the research on COVID-19 in the context of resiliency focusing on the footwear supply chain is non-existent.

Supply Chain Risk Management in Young and Mature SMEs

In this article, we examine how external factors such as demand, security regulation, cyber risks, and relative performance influence supply chain risk management (SCRM) in young and mature small and medium-sized enterprises (SMEs) in Turkey. For this, we utilised fuzzy set qualitative comparative analysis (fsQCA) using data from 137 Turkish SMEs. Our results suggest a single significant path for explaining SCRM in young SMEs, while we found three significant paths for explaining SCRM in mature SMEs. Furthermore, the results indicate that demand risk is the only external factor for young SMEs to realise SCRM success. For mature SMEs, demand risk and/or relative performance are essential to explain SCRM performance. Based on our findings, we theoretically contribute by unravelling the pathways through which external factors influence SCRM performance. Moreover, practitioners could align their strategies towards these pathways when constructing a strategy for achieving SCRM performance.

Capabilities for enhancing supply chain resilience and responsiveness in the COVID-19 pandemic: exploring the role of improvisation, anticipation, and data analytics capabilities

Purpose

This study aims to identify critical capabilities to address unforeseen and novel disruptions, such as those instigated by COVID-19, and explore their role as essential enablers of supply chain resilience and responsiveness, leading to improved performance.

Design/methodology/approach

The structural equation modeling technique was employed for analyzing the proposed associations using survey data from 206 manufacturers operating during the COVID-19 pandemic in a developing country, Pakistan.

Findings

Key findings show how improvisation and anticipation act distinctly yet jointly to facilitate supply chain resilience and responsiveness during the COVID-19 pandemic. Also, data analytics capability positively affects anticipation and improvisation, which mediate the effect of data analytics on supply chain resilience and responsiveness.

Research limitations/implications

The findings contribute to the theoretical and empirical understanding of the existing literature, suggesting that a combination of improvisation, anticipation and data analytics capabilities is highly imperative for enhancing supply chain resilience and responsiveness in novel and unexpected disruptions.

Originality/value

This is the first study to examine the impact of data analytics on improvisation and anticipation and the latter as complementary capabilities to enhance supply chain resilience and responsiveness. The empirical investigation explores the interplay among data analytics, improvisation, and anticipation capabilities for enhancing supply chain resilience, responsiveness, and performance during the unforeseen and novel disruptions, such as brought to bear by the COVID-19 pandemic.

The stakeholder's roles in risk management related to food supply chain recalls: a systematic literature review

Purpose

Food supply chains (FSCs) are becoming increasingly complex and vulnerable to recall risks due to quality failures. Measures for supply chain risk management can minimize these recall risks. However, this responsibility must be shared by all stakeholders in the chain. This study aims to analyze the roles of different stakeholders in managing risks in the events of food recalls.

Design/methodology/approach

A systematic literature review was carried out, and 110 articles were explored to identify risk management actions and to link them to the role of stakeholders involved in FSC recall.

Findings

The study found that nine stakeholders were responsible for 25 hazard management actions related to food safety and traceability systems, regulatory and preventive measures, and control and response mechanisms for food recalls in the FSC.

Originality/value

This article contributes to the literature by proposing an explanatory map associating risk management actions to different stakeholders in food recall. The actions were grouped according to whether they were prevention actions to avoid a food recall or contention actions to limit the negative economic effects and maintain the health of the population.

Global Changes and Disruptions in Supply Chains—Preliminary Research to Sustainable Resilience of Supply Chains

The contemporary world becomes more and more volatile and unpredictable every year (dynamic development of technology—Industry 4.0 and Industry 5.0, dynamic global changes related to the COVID-19 pandemic, great changes in consumer behavior, climate crisis, geopolitical disruptions). Individuals, companies, and supply chains face challenges emerging from economic, sociological, and political phenomena. These phenomena disrupt regular performance and limit the efficient functioning of companies and economies. Due to numerous relations and connections in the economy, disruptions in one area affect the others and spread, growing in range and severity. Hence, disruptions should be dealt with to provide continuity of supply chains and to ensure their efficient and effective performance. The study aims to identify crucial characteristics of disruptions to facilitate disruption minimization strategies. The characteristics of disruptions in supply chains are identified based on a literature review, synthesized and validated by the experts. A study is implemented to validate identified characteristics and to confront theoretical findings with the practical experience and observations of the experts. The results of the study are discussed and commented on. The conclusions from the study refer to the nature and characteristics of disruptions in the contemporary economy, equipping managers with useful knowledge when dealing with disruptions, and academics with observations that can stimulate further discussion on stability, flexibility, and resilience of companies and supply chains.

An analytic network process model to prioritize supply chain risks in green residential megaprojects

Megaprojects and specifically ‘green’ construction of residential megaprojects can contain significant risks of failure. To design proper risk mitigation strategies, after identifying key risk factors, the next step is to conduct assessments that would facilitate the process of risk element prioritization. Risk assessment comprises the establishment of factor interrelation and discerning the indicators of importance. This research proposes a novel version of an integrated prioritization method and analyzes twelve all-inclusive key supply chain oriented risk factors identified in a previous study. Through a comprehensive literature review three criteria, impact, probability, and manageability are selected. Also, a fourth criterion namely influence rate is included in the model, based on the driving powers that can also be derived from the Interpretive Structural Modeling’s (ISM) assessment. Fundamentally, the calculations hinge on the Analytic Network Process (ANP) method which provides an assessment of the alternatives’ weights based on pairwise comparisons concerning the criteria specified. To enhance the accuracy of the perceptive judgments of the expert panelists, a bell-shaped fuzzy function is used to convert the verbal statements to crisp values. In addition, Row Sensitivity Analysis is administered to check the stability of the results and provide predictive scenarios. To validate the model, a case study, located in Iran, was conducted, where an expert panel consisting of four individuals made the pair-wise comparisons through an ANP questionnaire. Results indicate priority and sensitivity of the alternatives concerning criteria, for the case under study.

Healthcare supply chain risk management in Rio de Janeiro, Brazil: What is the current situation?

BACKGROUND: Public hospital managers in Rio de Janeiro must deal with severe budget costs, which is the only source of income of public hospitals. In this sense, systematic supply chain risk management can contribute to identifying such risks, assessing their severity, and developing mitigating plans, or even revealing the lack of such plans. Private hospital networks must also map their risks since they are facing a diminishing of demand given that unemployment in Brazil, which is growing in the past years, generates an impossibility of affording private healthcare. OBJECTIVE: The purpose of this paper is to investigate how supply chain risk management is being applied in healthcare supply chains from Rio de Janeiro – Brazil. This study considers supply chains located in the state of Rio de Janeiro. To accomplish this objective, we provide answers to two Research Questions: RQ1 - Is SCRM known as a concept among Rio de Janeiro healthcare supply chains? RQ2 - How are risk identification, risk assessment, and risk mitigation being implemented by companies from the healthcare supply chains in Rio de Janeiro – Brazil? METHOD: Our research design is based on four steps: i) Research design; ii) Case selection: iii) Data collection (11 cases selected); iv) Data analysis. RESULTS: The interviews revealed that SCRM is an entirely unknown concept among healthcare supply chains from Rio de Janeiro – Brazil. Managers have empirical knowledge of the risks, and they can identify the most hazardous risks and can come up with solutions to mitigate them, nevertheless, in many situations they do not have the authority or the manpower to implement the solutions, at most, managers implement local risk mitigation initiatives that do not consider the supply chains broader context. CONCLUSION: The healthcare organizations studied by this paper do not apply SCRM. They only apply local isolated solutions not considering a supply chain scope. This can become hazardous since isolated risk mitigation initiatives are often innocuous and have the potential to generate other risks.

Supply Chain Management Practices Influence Supply Chain Performance With Mediation Role of Innovation and Moderation Role of Top Management Support

The study focuses on supply chain management practices, innovation, top management commitment, and supply chain performance at companies. The study's main objective is to investigate the association between supply chain management practices and supply chain performance and the intervening effect of innovation, the interaction effect of top management commitment. In this study, a simple random sampling technique and the sample size selected with G* power software (N = 208). The readymade questionnaire was used to collect data from National Logistic Corporation (NLC), Food and Beverage Companies Groups (FMCG) at China. The data analyzed through Smart-PLS (SEM → small and medium enterprises) and SPSS software. Meanwhile, innovational significant and positively mediated the relationship between supply chain management five practices and organizational performance. The findings of this study will help managers of SMEs enhance their performance. The results showed that SCMP directly and significantly affected supply chain performance, and customer relationship management was insignificant with supply chain performance. Supplier and customer relationship management both have a significant impact on innovation. In addition, innovation is considered a significant positive predictor for supply chain performance with the intervening approach. But top management commitment proved insignificant for customer relationship management and supply chain performance. The study further concluded that supply chain management practices would not be productive for supply chain performance if the top management does not apply innovative technologies in the organizations.

Investigating the interaction of factors for implementing additive manufacturing to build an antifragile supply chain: TISM-MICMAC approach

The outbreak of the Covid-19 pandemic has come across as an exogenous shock to the firms and their supply chains. It has led firms to rethink and rework their existing robust and resilient supply chains. The purpose of this study is to move beyond robustness and resilience and shift to an antifragile supply chain that sees disorder as an opportunity to learn and grow. In this study, various factors to attain an antifragile supply chain have been identified through literature review and experts’ opinions. Using TISM-MICMAC, structural relationships among these factors have been developed, and, then the factors have been classified as drivers or dependents. The study reveals the importance of having proactive top management as a major driving power to build an antifragile supply chain. Development of a strategy for collaboration and innovation, development of a skilled workforce for technology adoption, and resource allocation for digitalization are some other factors with strong driving power. The novelty of the study lies in its effort to drive the attention of researchers and practitioners towards thinking beyond robustness and resilience and shifting towards antifragility. The study will help firms in strategic decision-making for the adoption of additive manufacturing technology to develop antifragility in the supply chain and save itself from negative consequences in the face of disruption.

SMEs in Automotive Supply Chains: A Survey on Six Sigma Performance Perceptions of Czech Supply Chain Members

Six sigma is understood as a technique for the continuous improvement in process quality; however, it has been rarely scientifically analysed in small- and medium-sized enterprises (SMEs). SMEs representthe vast majority of enterprises throughout economies and contribute to automotive supply chains in various tier ranks. As SMEs are known to lack resources and skills while focusing on short-term benefits rather than on long-term gradual improvements, the aim of of this paper is to analyse the perception of six sigma process capabilities in automotive supply chains assuming differences in company size, supply chain rank and six sigma duration. This was tested with Fisher’s exact test. Companies with less than 1000 employees, subsuppliers and companies with a six sigma implementation in the last 3 years struggled to meet six sigma principles, suggesting that mainly small companies inhibit a risk for the supply chain. These findings contribute to the existing theoretical body of knowledge by identifying a three-to-five-year period for six sigma implementations until six sigma maturity. Practically, the findings contribute to the research by explaining the need for a continuous supplier development over a three-to-five-year period until the company meets its performance requirements, with a supply chain risk incorporated in lower-tier ranks and with small companies.

Show Me What You Do and I Will Tell You Who You Are: A Cluster Typology of Supply Chain Risk Management in SMEs

Although research on risk management (RM) in small- and medium-sized enterprises (SMEs) in general and regarding supply chains (SCs) has increased recently, our understanding is still rather fragmented and underdeveloped. This refers particularly to new types of risks such as dynamic crises or emerging risks associated with digital transformation (DT). Therefore, the purpose of this exploratory paper is to investigate RM in SMEs in SCs. More precisely, the aim is to identify patterns that can be used to group SMEs according to their risk behavior (i.e., risk attitude and perception). Drawing from a data set of 181 European SMEs, this paper empirically conceptualizes a typology of SMEs. The typology consists of four distinct types of SMEs that emerged from a cluster analysis: collective risk eliminators, collective playing it safe seekers, collective risk-ignoring knights of fortune, and collective neglecting imperturbable ones. The findings indicate that different risk behavior leads to different degrees of collaboration within the SC. Furthermore, the close interconnection between RM as found in the different clusters and the respective firm’s innovation performance can be shown. By acknowledging the heterogeneity found in SMEs, this paper breaks away from mainstream research that tends to consider SMEs as a homogeneous entity.

Risks and supply chain performance: globalization and COVID-19 perspectives

Purpose

This article aims to examine the simultaneous effect of risks on physical and intangible dimensions of supply chain performance under the globalization and Covid-19 perspectives.

Design/methodology/approach

The manipulation of literature reviews together with the combination of Q-sort and empirical data in the construction industry to identify and assess risks and supply chain performance, is a novel approach in the supply chain risk management area. The analysis of Structural Equation Modeling that is able to calculate the simultaneous impact of various risks on supply chain performance, is used to validate this relationship.

Findings

Global supply chains are currently facing interruptions caused by several sources of inherent uncertainties, e.g. natural disasters, war and terrorism, external legal issues, economic and political instability, social and cultural grievances, and diseases. The weaknesses of the current global supply chain have been revealed, resulting in delays, supply unfulfillment, labor shortages and demand fluctuation. These supply chain risks have a great on supply chain performance indicators, and the magnitude of their impact tends to increasingly impact in the context of globalization and the Covid-19 pandemic. Findings showed that the proposed risk models can be explained with Variance of supplier performance (25.5%), Innovation and learning (21.2%), Internal business (61.9%), Customer service (39.4%) and Finance (39.7%).

Research limitations/implications

Supply chain managers should keep in mind acceptable cost/benefit trade-offs in corporate risk mitigation efforts associated with major contingency risks. In doing so, the proposed hypothesized model can be “a road map” to achieve this purpose. Our research favors the adoption of supply chain management strategies, e.g. postponement, speculation and avoidance.

Originality/value

The trend toward globalization and the emergence of the Covid-19 pandemic increasing supply chain complexity are regarded as key drivers of supply chain risk and therefore enhance vulnerability to supply chain.

The logistics service providers during the COVID-19 pandemic: The prominence and the cause-effect structure of uncertainties and risks

Uncertainties and risks play a central role in creating vulnerabilities for logistics service operations. Over the years, Logistic Service Providers (LSPs) have learned how to ensure resilience to confront uncertainties and risks triggered by adverse events. However, quite unlike any seen in recent times, the COVID-19 pandemic brings about unavoidable uncertainties and risks for the logistics industry. Yet, there is no common approach to contextualize how they interact together. We incorporate an empirical research design and make a threefold contribution: first, we identify uncertainties and risks that LSPs encounter during the COVID-19 pandemic and investigate their prominence. Second, we unveil intertwined schemes of afore-identified uncertainties and risks and augment the understanding of their cause-effect structure. Third, we provide an uncertainty and risk assessment guideline for LSPs affected by threats emerging from unforeseeable crises. In this study, we combine qualitative work and the fuzzy DEMATEL method. Qualitative thematic analysis of in-depth interviews reveals the most important uncertainties (COVID-19 measures, employee welfare, forecast horizon, demand change, and government regulations) and risks (COVID-19 risk, delivery delays, supply chain disruptions, financial failure, and product returns) for LSPs. The fuzzy DEMATEL method shows that COVID-19 measures and COVID-19 risk are highly prominent and influence other factors. The results indicate that demand change, government regulations, and supply chain disruptions are net causers, and employee welfare, financial failure, forecast horizon, delivery delays, and product returns are net receivers. Distinctly, employee welfare is the most affected factor, empirically confirming that major risks for LSPs are related to the human factor. More investigation in our results suggests that supply chain disruptions and demand change, two factors triggered by the COVID-19 pandemic, influence financial failure and forecast horizon, two factors associated with operational performance.

Meta-analysis of Supply Chain Disruption Research

The purpose of this chapter is to provide insights into literature on supply chain disruption research with a specific focus on future research opportunities. A structured meta-literature review approach covering 93 literature reviews was chosen. Quantitative and qualitative content analysis and bibliographic network analysis are applied to highlight trends and research gaps. The meta-analysis shows the current and past academic discourse on supply chain disruptions. Furthermore, this research establishes a research framework and highlights future research opportunities. The research points to research topics that should be addressed in the future. The paper provides a holistic understanding of literature on supply chain disruptions in the commercial and humanitarian context.

Developing a Risk Reduction Support System for Health System in Iran: A Case Study in Blood Supply Chain Management

Health systems are recognised as playing a potentially important role in many risk management strategies; however, there is strong evidence that health systems themselves have been the victims of unanticipated risks and have lost their functionality in providing reliable services. Existing risk identification and assessment tools in the health sector, particularly in the blood supply chain, address and evaluate risks without taking into account their interdependence and a holistic perspective. As a result, the aim of this paper is to develop a new systemic framework based on a semi-quantitative risk assessment approach to measure supply chain risks, which will be implemented through a case study on the Iranian BSC. This paper identifies and assesses supply chain risks (SCRs) by employing a novel systemic process known as SSM-SNA-ISM (SSI). First, the supply chain and its risks are identified using Soft Systems Methodology (SSM). Then, given the large number of risks, the second stage uses Social Network Analysis (SNA) to identify the relationships between the risks and select the most important ones. In the third stage, risk levelling is performed with a more in-depth analysis of the selected risks and the application of Interpretive Structural Modelling (ISM), and further analysis is performed using the Cross-Impact Matrix Multiplication Applied to Classification (MICMAC). The study found that by using the new proposed approach, taking into account risk relationships, and taking a holistic view, various supply chain risks could be assessed more effectively, especially when the number of risks is large. The findings also revealed that resolving the root risks of the blood supply chain frequently necessitates management skills. This paper contributes to the literature on supply chain risk management in two ways: First, a novel systemic approach to identifying and evaluating risks is proposed. This process offers a fresh perspective on supply chain risk modelling by utilising systems thinking tools. Second, by identifying Iranian BSC risks and identifying special risks.

Procurement process risk and performance: empirical evidence from manufacturing firms

Purpose

This paper employs the positivism paradigm, quantitative approach and explanatory research design. It analyses primary data obtained from manufacturing firms via structured questionnaires and uses the partial least square-structural equation modelling technique to establish the effect of individual procurement process risk on procurement performance.

Design/methodology/approach

Procurement risks are inevitable in manufacturing procurement process; a situation that could undermine the performance of manufacturing firms if not properly managed. Yet, with procurement accounting of about 14–19% of developing countries gross domestic product, the effects of procurement process risk on performance remain scarce in manufacturing firms in developing countries. Therefore, the paper aims to investigate the effect of procurement process risk on procurement performance of manufacturing firms.

Findings

In this paper, five out of the six procurement process risks studied were found to be undermining procurement performance of manufacturing firms significantly. However, the risk threshold effect on the performance differs.

Research limitations/implications

Although this research is geographically/sector bias, several insightful managerial implications can be drawn to manage procurement process risk in manufacturing settings irrespective of the area of operation. The results of this research imply that manufacturing firms' procurement process is risk prone and the effect of risk surrounding each procurement process on procurement performance differs. Hence, the need to identify and analyse the risks surrounding each procurement process before making managerial decision to spend firms limited resources in response to the individual risk to improve procurement performance in the manufacturing sector.

Originality/value

This paper is the first to provide existing and future procuring practitioners/firms with in-depth empirical evidence of the effect of the procurement process risks on procurement performance in manufacturing firms operating in developing economies.

Supply chain sustainability risk decision support model using integrated Preference Selection Index (PSI) method and prospect theory

Purpose

The purpose of this paper is to introduce the integrated model of the Preference Selection Index (PSI) and the prospect theory as new means to appraise the impact of supply chain sustainability risks based on five pillars of sustainability. Research has shown that sustainability risk assessment has a strong positive impact on improving the performance of enterprises.

Design/methodology/approach

This study adopts a new decision support model for assessing supply chain sustainability risk based on additional failure mode and effect analysis parameters and its integration with PSI methodology and prospect theory. A case example of the supply chain small and medium enterprise (SME) producing fashion have been used in this study.

Findings

The result of this study reveals some critical supply chain sustainability risks affecting the sustainability of enterprises under study.

Research limitations/implications

The use of a limited sample is often associated as a limitation in the research studies and this study is based on findings from SMEs in the fashion retail supply chain. This preliminary study provides academics and practitioners an exemplar of supply chain sustainability risk assessment using integration of the PSI method and prospect theory.

Practical implications

The result of this study is beneficial for practitioners, particularly owner–managers of SMEs who can use this study as guidance on how to consider risk behavior to identify and select the critical sustainability risks and plan mitigating strategies accordingly.

Originality/value

Scientific studies on using the PSI and its integration with prospect theory as means to assess the criticality of supply chain sustainability risks is very rare. To the best of the authors’ knowledge, this is the first paper that presents the integrated model of the PSI and prospect theory to rank supply chain sustainability risks based on five pillars of sustainability.

Supply chain resilience during the COVID-19 pandemic

The COVID-19 pandemic has challenged supply chains more seriously challenged than ever before. During this prolonged global health crisis, supply chain managers were forced to rely primarily on solutions developed for limited and foreseeable crises. This study aimed to understand how well existing solutions facilitated supply chain resilience in the UK perishable goods market. Consistent with this aim, we developed a research model based on the supply chain resilience literature and tested it with covariance-based structural equation modelling. Data were collected from 282 retail employees. Supply chain velocity was the preferred measure of resilience. The findings demonstrate that pandemic-related disruptions have affected resilience-building activities. While both proactive and reactive approaches have promoted resilience building during the pandemic, they have not been sufficient to ameliorate all the pandemic's negative effects. Innovation featured as the most effective factor, followed by robustness, empowerment, and risk management via reduced risk. The effect of firm size was significant only on supply chain risk management, with larger companies more efficiently applying risk management practices. The results emphasise the importance of innovation for supply chain resilience. Regardless of firm size, innovation works for every company. Empowerment is another costless and effective tool. Therefore, it is safe to conclude that innovation and empowerment can help organisations to manage their supply chains effectively during crises. Companies can strengthen their supply chain resilience by developing strong relationships with their supplier and employees.

Supply chain risk management in the COVID-19 pandemic: strategies and empirical lessons for improving global logistics service providers’ performance

Purpose

The enormous impact of the COVID-19 pandemic showcases the key role of supply chain risk management (SCRM) in achieving and maintaining business performance, competitiveness and survival in the “new normal”. The purpose of this paper is to explore what impact the COVID-19 pandemic has had and may yet have on supply chains (SCs), which SCRM approaches have proved successful and how logistics service providers (LSPs) have applied the knowledge they have gained to improve their SCRM practices and resilience so as to prepare better for the next major disruption.

Design/methodology/approach

This paper combines an extensive literature review with a multiple-case study of 10 internationally operating LSPs and how they have handled the impact of the COVID-19 pandemic so far. To bridge the research-practice gap, this study draws on the dynamic-capabilities view and provide insights that are valuable to both academia and practice.

Findings

This study provides empirical evidence on the severe impact of the COVID-19 pandemic on SCs, which has posed several challenges to LSPs. The study identifies eight factors that are critical to the adaptive capabilities of LSPs and, therefore, to their resilience in extreme conditions. The findings of this study show that these factors determine whether an SCRM system is robust and agile enough to allow an LSP to anticipate potential disruption and to respond fast enough when disruption occurs. Specifically, this study finds that robustness and agility demonstrably strengthen business performance, while learning from experience proves key to reconfiguring an SCRM design in response to acute disruption.

Originality/value

This paper is among the first to provide rich, empirical and practically applicable insights into the impact of the COVID-19 pandemic on business in relation to SCRM. These novel insights offer inspiring opportunities for further research.

Energy Resilience Impact of Supply Chain Network Disruption to Military Microgrids

The ability to provide uninterrupted power to military installations is paramount in executing a country’s national defense strategy. Microgrid architectures increase installation energy resilience through redundant local generation sources and the capability for grid independence. However, deliberate attacks from near-peer competitors can disrupt the associated supply chain network, thereby affecting mission critical loads. Utilizing an integrated discrete-time Markov chain and dynamic Bayesian network approach, we investigate disruption propagation throughout a supply chain network and quantify its mission impact on an islanded microgrid. We propose a novel methodology and an associated metric we term “energy resilience impact” to identify and address supply chain disruption risks to energy security. The proposed methodology addresses a gap in the literature and practice where it is assumed supply chains will not be disrupted during incidents involving microgrids. A case study of a fictional military installation is presented to demonstrate how installation energy managers can adopt this methodology for the design and improvement of military microgrids. The fictional case study shows how supply chain disruptions can impact the ability of a microgrid to successfully supply electricity to critical loads throughout an islanding event.

Analysing developing countries approaches of supply chain resilience to COVID-19

Purpose

The Covid-19 pandemic has made it essential to explore the resilience factors specific to developing regions, not only because they pose threats of extreme poverty and offer a novel context but also because they play an important role in globalisation.

Design/methodology/approach

A mixed-method approach was undertaken to address this novel pandemic situation. First, an open-ended structured questionnaire was developed, and data were collected from three neighbouring emerging economies: Pakistan, India and Iran. Experts' perspectives on vulnerabilities, response measures, resilience and restoration of supply chain activities, and the role of social capital were collected. Second, building upon the findings from phase one of the studies, a quantitative structured questionnaire using the supply chain operational reference (SCOR) model was used to collect data in a structured manner. This quantitative data were further analysed using frequency and contingency analysis.

Findings

The findings from the first phase of the study inductively derive 36 resilience categories. Later, the contingency findings show that supply chain (SC) disruption is a major vulnerability for emerging economies, whereas solutions offered to combat it lay in the reconfiguration of resources, such as financial, technological, human, information and material. Additionally, supply network structure and social capital play an integral part in making SCs resilient against disruption.

Research limitations/implications

The respondents comprise the academics/SC researchers, which make the findings interesting though they lack the industrial experts' perspectives, directly. Nevertheless, the propositions can be tested in industrial settings to see whether the results are limited to a specific industrial setting or are rather generalised.

Practical implications

Similarly, practitioners and policy makers can incorporate the SCOR metrics/factors outlined in this study into their performance measurement systems and ensure continuous monitoring for firm's resilience.

Originality/value

The study offers a holistic understanding of the developing regions' approaches to Covid-19. The paper also takes a social capital perspective to explain firms' resilience in these emerging economies.

Celebrating IJPDLM's 50th anniversary: a reflection on its contributions and future directions

Purpose

This article celebrates the 50th anniversary of IJPDLM, reflects on the contribution of IJPDLM to the field of logistics and supply chain management (LSCM) and discusses future directions for the journal.

Design/methodology/approach

Descriptive analysis of manuscripts received and accepted by IJPDLM during 2015–2019 is used to provide an overview of the journal. Content analysis of selected articles is used to highlight important contributions of the journal. Changes made since 2020 are highlighted to inform future directions of IJPDLM. Invited articles are discussed and used to clarify future directions.

Findings

IJPDLM has made tremendous progress in informing and shaping the field of LSCM. Key issues addressed include sustainability and reverse logistics, omni-channel, e-commerce, retail logistics, risk, resilience, volatility, and complexity and digital technology innovation. The journal has expanded the use of methods beyond the typical qualitative and quantitative methods to explore the use of design science, experiment, conjoint analysis, qualitative comparative analysis, narrative analysis. The invited articles provide (1) a historical reflection of the purpose of the journal when it was launched, (2) new guidance on how to develop theories using literature review and grounded theories and (3) understanding of startups and supply chain ecosystems.

Practical implications

Some exemplar articles are highlighted to explain how IJPDLM informs LSCM managers, companies and policy makers.

Originality/value

This article explains the recent development and sets future directions for the LSCM field.

COVID-19 and supply chain risk mitigation: a case study from India

Purpose

This study prioritizes the supply chain risks (SCRs) and determines risk mitigation strategies (RMSs) for the Indian apparel industry to mitigate the shock of the COVID-19 pandemic disruption.

Design/methodology/approach

Initially, 23 SCRs within the apparel industry are identified through an extant literature review. Further, a fuzzy analytical hierarchy process (FAHP) is utilized to prioritize the SCRs considering the epidemic situations to understand the criticality of SCRs and determine appropriate RMSs to mitigate the shock of SCRs during COVID-19.

Findings

This study prioritized and ranked the SCRs within the Indian apparel industry based on their severity during the COVID-19 disruption. Results indicate that the demand uncertainty and pandemic disruption risks are the most critical. Based on the SCRs, the present work evaluated and suggested the flexibility and postponement mitigation strategies for the case under study.

Research limitations/implications

This study has novel implications to the existing literature on supply chain risk management in the form of the FAHP framework. Supply chain practitioners from the other industrial sectors can extend the proposed FAHP framework to assess the SCRs and identify suitable mitigation strategies. The results aid the practitioners working in an apparel industry to benchmark and deploy the proposed RMSs in their firm.

Originality/value

The present study is a unique and earlier attempt to develop a quantitative framework using FAHP to evaluate and determine the risk mitigation strategy for managing the SCRs during the coronavirus epidemic.

Prioritising risk mitigation strategies for environmentally sustainable clothing supply chains: Insights from selected organisational theories

Recent outbreak of COVID-19 pandemic has provided strong impetus to supply chain resilience research. In a volatile and uncertain business environment, resilience can be incorporated by developing and implementing effective risk mitigation strategies. In this research, risk mitigation strategies for environmentally sustainable clothing supply chain have been prioritised by considering their efficacy to mitigate various risks. Twelve risks and thirteen mitigation strategies, identified through literature review and experts' opinion, are considered as decision criteria and alternatives respectively. Fuzzy Technique for Order Preference by Similarity to Ideal Solutions (fuzzy TOPSIS) is implemented under a group decision making scenario for prioritising the strategies. Developing supply chain agility; multiple green sourcing and flexible capacities; adoption of green practices; building trust, coordination and collaboration; and alignment of economic incentives and revenue sharing are found to be dominant risk mitigation strategies for environmentally sustainable clothing supply chain. These strategies have been viewed through the lens of resource dependence, change management and transaction cost theories. Organisation desirous to build resilience in their supply chain can prioritise the risk mitigation strategies and adopt a portfolio of strategies based on the outcome of this research.

Supply chains and COVID-19: impacts, countermeasures and post-COVID-19 era

Purpose

This paper explores the steps/countermeasures taken by firms to address supply chain disruptions in the wake of COVID-19.

Design/methodology/approach

This study employs a case study methodology and employs 46 semi-structured interviews with senior managers of the three buying firms, four distribution centres and four supplying firms based in four countries (Pakistan, Sri Lanka, China and India).

Findings

Results reveal that manufacturers are refining production schedules to meet the production challenges. Distributors are working with secondary suppliers to meet the inventory shortage. Finally, supplying firms are evaluating the impact of demand, focusing on short-term demand-supply strategy, preparing for channel shifts, opening up additional channels of communication with key customers, understanding immediate customer’s demand and priorities and finally becoming more agile.

Research limitations/implications

There are some limitations to this study. First, the results of this study cannot be generalized to a wider population. Second, this study explores the interpretations of senior managers based in four Asian countries only.

Practical implications

Supply chain firms can use these findings to understand how COVID-19 is affecting firms. Firms can also use the suggestions provided in this study to mitigate the impact of COVID-19 and make the best out of this pandemic.

Originality/value

This study contributes to the supply chain disruption literature by exploring the robust countermeasure taken by supply chain firms amid COVID-19 outbreak. In particular, it explores such countermeasures from the perspective of three different entities (buyer, supplier and distributor) based in four different countries in the South Asian region.

Modelling supply chain risks and their impacts on the performance of the sago starch agro-industry

Purpose

Supply chain risks (SCRs) have uncertainty and interdependency characteristics that must be incorporated into the risk assessment stage of the SCR management framework. This study aims to develop SCR networks and determine the major risk drivers that impact the performance of the sago starch agro-industry (SSA).

Design/methodology/approach

The risk and performance variables were collected from the relevant literature and expert consultations. The Bayesian network (BN) approach was used to model the uncertain and interdependent SCRs. A hybrid method was used to develop the BN structure through the expert’s knowledge acquisitions and the learning algorithm application. Sensitivity analyses were performed to examine the significant risk driver and their related paths.

Findings

The analyses of model indicated several significant risk drivers that could affect the performance of the SSA. These SCR including both operational and disruption risks across sourcing, processing and delivery stage.

Research limitations/implications

The implementation of the methodology was only applied to the Indonesian small-medium size sago starch agro-industry. The generalization of findings is limited to industry characteristics. The modelled system is restricted to inbound, processing and outbound logistics with the risk perspective from the industry point of view.

Practical implications

The results of this study assist the related actors of the sago starch agro-industry in recognizing the major risk drivers and their related paths in impacting the performance measures.

Originality/value

This study proposes the use of a hybrid method in developing SCR networks. This study found the significant risk drivers that impact the performance of the sago starch agro-industry.