Escolar Documentos
Profissional Documentos
Cultura Documentos
BioOne (www.bioone.org) is a nonprofit, online aggregation of core research in the biological, ecological, and
environmental sciences. BioOne provides a sustainable online platform for over 170 journals and books published
by nonprofit societies, associations, museums, institutions, and presses.
Your use of this PDF, the BioOne Web site, and all posted and associated content indicates your acceptance of
BioOnes Terms of Use, available at www.bioone.org/page/terms_of_use.
Usage of BioOne content is strictly limited to personal, educational, and non-commercial use. Commercial inquiries
or rights and permissions requests should be directed to the individual publisher as copyright holder.
BioOne sees sustainable scholarly publishing as an inherently collaborative enterprise connecting authors, nonprofit publishers, academic institutions, research
libraries, and research funders in the common goal of maximizing access to critical research.
SI
73
95-98
Winter 2015
School of Management
Zhejiang University
Hangzhou 310000, China
www.cerf-jcr.org
ABSTRACT
Yu, Y.; Xiong, W., and Cao, Y., 2015. A conceptual model of supply chain risk mitigation: The role of supply chain
integration and organizational risk propensity. In: Mi, W.; Lee, L.H.; Hirasawa, K., and Li, W. (eds.), Recent
Developments on Port and Ocean Engineering. Journal of Coastal Research. Special Issue, No. 73, pp. 95-98. Coconut
Creek (Florida), ISSN 0749-0208.
www.JCRonline.org
Supply chain risk management has drawn great attention from both researchers and practitioners in recent years.
Economic globalization and the resultant complexity of the supply chain network plus the uncertainty of the
environment makes risk and vulnerability a major challenge to related firms. This paper aims to establish a conceptual
model for mitigating supply chain risk by introducing two variables named supply chain integration and organizational
risk propensity. Based on extensive literature review, some major propositions are proposed including the following
four aspects: supply chain risk is negatively related to supply chain integration; supply chain integration is positively
related to company performance; organizational risk propensity moderates the relationship between supply chain risk
and supply chain integration; the integrative model is moderated-mediation. The integrative model is theoretically
valuable in further exploring the internal path and mechanism of the impact of supply chain risk on a firms
performance. The model is also practically useful in providing suggestions and references for supply chain risk
management and supply chain integration. Finally, the future directions for empirical research are also presented.
ADDITIONAL INDEX WORDS: Supply chain risk, organizational risk propensity, supply chain integration, firm
performance.
________________________________________________________________________________
INTRODUCTION
Nowadays, as economic globalization develops, customers
demands are diversifying, information technology is becoming
more popular, and competition among firms is becoming fiercer.
Competition plus unexpected market changes make it necessary
for firms to resort to supply chain to obtain complementary
resources, capabilities and technology. Therefore, supply chain
is becoming a main element to forge core competence for firms,
thus making supply chain management a powerful weapon to
tackle competitive challenges. When we take a close look at the
supply chain, we can see that it has undergone substantial
changes for many reasons, such as the increasing globalization,
the increasing trend of outsourcing business, the significant
shortening of products life span (Christopher et al., 2011) and
the decreasing number of suppliers, etc. Moreover, as the
structure of the supply chain network is getting more
complicated, the environment is becoming more changeable.
This leads to an increase in risk and vulnerability in the supply
chain which is a common challenge to related firms. Empirical
studies also indicate that supply chain risk has a negative effect
on company income (Hendricks and Singhal, 2005). Therefore,
risk management is becoming the key issue in supply chain
____________________
DOI: 10.2112/SI73-017.1 received 23 August 2014; accepted in
revision 10 November 2014.
*Corresponding author: yyb0426@gmail.com
Coastal Education & Research Foundation, Inc. 2015
management.
In the global market, firms tend to cooperate with major
suppliers and key customers in order to survive and expand
(Flynn, Huo, and Zhao, 2010; Frohlich and Westbrook, 2001;
Zhao et al., 2008). As described in the vertical integration
theory, vertical integration can reduce uncertainty, and bring in
benefits like information communication, inner control synergy,
transaction cost reduction, and relationship stabilization.
Empirical studies have showed that supply chain collaboration
and integration, as the extension of vertical integration
(Stonebraker and Liao, 2006), is the key management strategy
to reduce and deal with environmental uncertainty (including
risk), which plays a mediating role between supply chain risk
and supply chain performance (Simangunsong, Hendry, and
Stevenson, 2012). Supply chain integration is also considered to
be an effective strategy in mitigating the risk of supply chain
interruption, and has a direct positive influence on the formation
of warning and recovery capability of firms (Shao, 2013). In
addition, from the perspective of organizational ability, supply
chain integration, as a key capability of firms for inner and outer
coordination, has direct and indirect influence on a companys
performance (Huo, 2012). Therefore, as a mediator, supply
chain integration is expected to affect the relationship between
supply chain risk and company performance. Although existing
studies have discussed this to some degree, they were not
thorough enough and largely focused on discussing the
relationship between concepts such as supply chain risk and
96
97
LITERATURE CITED
Braunscheidel, M.J. and Suresh, N.C., 2009. The organizational
antecedents of a firms supply chain agility for risk mitigation
and response. Journal of Operations Management, 27(2),
119-140.
Chang, Y. and Thomas, H., 1989. The impact of diversification
Strategy on risk-return performance. Strategic Management
Journal, 10(3), 271-284.
Chen, J.; Sohal, A.S., and Prajogo, D.I., 2013. Supply chain
operational risk mitigation: A collaborative approach.
International Journal of Production Research, 51(7),
2186-2199.
Cheng, T.C.E.; Yip, F.K., and Yeung, A.C.L., 2011. Supply risk
management via guanxi in the Chinese business context: The
buyers perspective. International Journal of Production
Economics, 139(1), 3-13.
Christopher, M.; Mena, C.; Khan, O., and Yurt, O., 2011.
Approaches to managing global sourcing risk. Supply Chain
Management: An International Journal, 16(2), 67-81.
Christopher, M. and Peck, H., 2004. Building the resilient supply
98