An examination of the effect of supply chain disruption risk drivers on organizational performance: evidence from Chinese supply chains

Parast, Mahour Mellat and Subramanian, Nachiappan (2021) An examination of the effect of supply chain disruption risk drivers on organizational performance: evidence from Chinese supply chains. Supply Chain Management, 26 (4). pp. 548-562. ISSN 1359-8546

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Abstract

Purpose
This paper aims to examine the relationship of supply chain disruption risk drivers to supply chain performance and firm performance outcomes.

Design/methodology/approach
Four disruption risk drivers for a supply chain are identified, namely, demand disruption risk, supply disruption risk, process disruption risk and environment disruption risk. A cross-sectional survey was developed and data was collected from 315 Chinese firms to determine the relationship of supply chain disruption risks to supply chain performance and firm performance.

Findings
The empirical findings show that supply disruption risks and process disruption risks have a significant impact on supply chain performance. In addition, this paper shows that supply disruptions, demand disruptions and process disruptions are significantly related to firm performance. This paper shows that supply chain disruption risks have different effects on supply chain performance and firm performance. Managers should be aware that disruption risk drivers can have an impact on firm performance that is different from their impact on supply chain performance. An important finding of the study is that the magnitude of the impact of disruption risks on supply chain performance is greater on the upstream side of the supply chain than on the downstream side of the supply chain.

Originality/value
This is one of the early studies to examine the effect of supply chain disruption risk drivers on both firm performance and supply chain performance. An important finding of the study is that the magnitude of the impact of disruption risks on supply chain performance is greater on the upstream side of the supply chain than on the downstream side of the supply chain.

Item Type: Article
Keywords: Supply Chain Risk Management, Supply Risk, Demand Risk, Environmental Risk, COVID-19
Schools and Departments: University of Sussex Business School > Management
SWORD Depositor: Mx Elements Account
Depositing User: Mx Elements Account
Date Deposited: 10 Dec 2020 08:22
Last Modified: 25 Feb 2022 15:00
URI: http://sro.sussex.ac.uk/id/eprint/95631

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