Cyber supply chain risk management and performance in industry 4.0 era: information system security practices in Malaysia

ABSTRACT

This study aims to investigate the direct and indirect effects of information system security practices that observed the relationship effect between cyber supply chain risk management and supply chain performance. In Industry 4.0 era, a cyber-attack becomes unavoidable and needs to adopt cyber supply chain risk management to improve the firm. The data were collected from 105 firms in Malaysia through online surveys. The partial least squares structural equation modeling technique examined the model’s goodness and research hypothesis. The results revealed that operations, directly and indirectly, influence (via mediators) supply chain performance. In contrast, governance directly affects supply chain flexibility and indirect (via mediators) influence on supply chain performance; in addition, systems integration did not, directly, and indirectly, influence supply chain performance. This framework indicates the manufacturing industry and related parties with a better understanding of cyber supply chain risk management.

Graphical Abstract

KEYWORDS:

• Cyber-Attacks
• cyber risk
• supply chain risk
• industry 4.0
• digitalization
• information system security
• supply chain management

Acknowledgments

The authors convey their appreciation to the Division of Research & Innovation, Universiti Malaysia Pahang for funding this study (RDU1903126 & PDU203220). This study is partially supported by NSTC 111-2221-E-468 −008 -MY3

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

This work was supported by the Division of Research & Innovation, Universiti Malaysia Pahang [RDU1903126 & PDU203220]; National Science and Technology Council [111-2221-E-468 −008 -MY3].