A classification and framework for measuring sustainability supply chain risk indices in small and medium enterprises

Abstract

Considering its significant contribution to the global Gross Domestic Product, improving an understanding of risks affecting the sustainability of operation in small and medium enterprises in a networked economy is undeniably important. Unfortunately, most of the previous studies concerning on managing risk in small and medium enterprises within a supply chain context are mostly focused on economic and operational risks and overlooking to the emerging risk, the sustainability risk. There is a need to have a better understanding of the mode of sustainability-risk variables affecting the operability of small and medium enterprises in supply chain context and framework for measuring their sustainability risk indices. This study, therefore, proposes a conceptual model to classify sustainability-related risk variables in the operation of the small and medium enterprises departing from the triple bottom lines namely, economic, environmental, and social risk from earlier references and develops a framework for measuring supply chain sustainability risk. proposed. The distinction between operational and sustainability risk variables and additional parameters for measuring the scale of risk score are presented. In the end, the paper provides new research directions for deeper investigation.