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Global supply chain risk management strategies

by I Manuj, J T Mentzer, I and Mentzer Manuj J.T
International Journal of Physical Distribution and Logistics Management ()
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Purpose - Global supply chains are more risky than domestic supply chains due to numerous links interconnecting a wide network of firms. These links are prone to disruptions, bankruptcies, breakdowns, macroeconomic and political changes, and disasters leading to higher risks and making risk management difficult. The purpose of this paper is to explore the phenomenon of risk management and risk management strategies in global supply chains. Design/methodology/approach - This paper is based on an extensive literature review and a qualitative study comprising 14 in-depth interviews and a focus group meeting with senior supply chain executives. Findings - The study provides insights into the applicability of six risk management strategies with respect to environmental conditions and the role of three moderators. Research limitations/implications - The model is developed in a global manufacturing supply chain context. It should be tested in other contexts and with other methods to provide generalizability. The study takes a much needed step toward building a theory of risk management in global supply chains, which opens important future research directions. Practical implications - This research provides direction to managers for choosing risk management strategies based on the global supply chain environment. Moderators have practical implications for global supply chain managers. Originality/value - The paper addresses an identified gap in the literature for selecting risk management strategies in global supply chains. It employs grounded theory, a methodology appropriate for theory-building, to explore a phenomenon with an inadequate theoretical base. © Emerald Group Publishing Limited.

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