The effect of supply chain collaboration on firms’ risk management under technology turbulence

Abstract

This study addresses the question of how supply chain collaboration affects a firm’s competitive advantage. Building on the social exchange theory, this study investigates the impact of supply chain collaboration on risk management capabilities (i.e. routine risk management capability and extraordinary risk management capability) that further influence competitive advantages. Moreover, building on a contingency perspective, this study investigates the condition (i.e. technological turbulence) under which supply chain collaboration is more effective in enhancing risk management capabilities. As a result of an analysis of survey data from 264 U.S. manufacturing firms, this study shows that supply chain collaboration positively impacts routine and extraordinary risk management capabilities that further promote competitive advantage. The results also reveal that the positive indirect effects of supply chain collaboration on firms’ competitive advantage via routine and extraordinary risk management capabilities are stronger under a higher level of technological turbulence. With the emphasis on the importance of supply chain collaboration under high technological turbulence, the results advise managers to design an implementable risk management framework and adopt specific mitigation strategies for supply chain risks.

Keywords:

• Supply chain risk management
• risk management capability
• supply chain collaboration
• technological turbulence
• social exchange theory

Additional information

Notes on contributors

Shuting Li

Shuting Li is an assistant professor at school of management, Shanghai University, China. Dr. Li holds a Ph.D. in Manufacturing and Technology Management from the University of Toledo, OH. Her articles have been published in journals including Production Planning & Control, Supply Chain Management: An International Journal, Industrial Marketing Management, Journal of Cleaner Production, Journal of Business & Industrial Marketing, Operations Management Research, Electronic Commerce Research and Applications, International Journal of Logistics Research and Applications, Sustainability, and Maritime Economics & Logistics. Her research interests include supply chain management, sustainability, and supply chain finance.

Tongtong Xu

Tongtong Xu is a master student at school of management, Shanghai University, China. She holds a bachelor’s degree in Management from Jiangsu University, Chain. Her research interests include cross-border e-commerce, supply chain management, firms’ risk management and sustainable supply chain. She recently wrote a case that was included in the ‘China Management Case·Sharing Center’, describing the success of a Chinese unicorn company going overseas through supply chain transformation and cooperation with suppliers.

Kihyun Caleb Park

Kihyun Caleb Park is a professor of operations management in the Rockwell School of Business at Robert Morris University, Moon Township, PA. He holds a Ph.D. in Manufacturing and Technology Management from the University of Toledo. He holds a bachelor’s degree and a master’s degree in Economics from Hanyang University, Seoul, Korea. His articles have been published in Computers & Education, Industrial Management & Data Systems, Journal of Cleaner Production, Journal of Manufacturing Technology Management, and Journal of Purchasing & Supply Management, Production Planning & Control, among others. His research interests include resilient supply chain strategy practices and their outcomes in terms of visibility, security, and sustainability.

Mingu Kang

Mingu Kang is an associate professor at the School of Management, Zhejiang University, China. Dr. Kang earned a Ph.D. degree from the School of Management, Zhejiang University, Hangzhou, China. He holds a master’s degree and a bachelor’s degree in Mechanical Design Engineering from Hanyang University in Seoul, Korea. His articles have been published in Journal of Business Research, Production Planning & Control, International Journal of Physical Distribution & Logistics Management, Industrial Marketing Management, Ethics & Behaviour and Journal of Purchasing and Supply Management. His research interests include outsourcing strategy, supply chain management, and strategies for managing technological innovation.