2,750
Views
23
CrossRef citations to date
0
Altmetric
Articles

Impact of financial risk on supply chains: a manufacturer-supplier relational perspective

ORCID Icon, ORCID Icon, ORCID Icon, ORCID Icon & ORCID Icon
Pages 7090-7105 | Received 06 Dec 2019, Accepted 28 Sep 2020, Published online: 02 Nov 2020

References

  • Alikhani, R., S. A. Torabi, and N. Altay. 2019. “Strategic Supplier Selection Under Sustainability and Risk Criteria.” International Journal of Production Economics 208: 69–82.
  • Azaron, A., K. N. Brown, S. A. Tarim, and M. Modarres. 2008. “A Multi-Objective Stochastic Programming Approach for Supply Chain Design Considering Risk.” International Journal of Production Economics 116 (1): 129–138.
  • Bandaly, D., A. Satir, and L. Shanker. 2014. “Integrated Supply Chain Risk Management via Operational Methods and Financial Instruments.” International Journal of Production Research 52 (7): 2007–2025.
  • Barberis, N., R. Greenwood, L. Jin, and A. Shleifer. 2015. “X-CAPM: An Extrapolative Capital Asset Pricing Model.” Journal of Financial Economics 115 (1): 1–24.
  • Basu, P., and S. K. Nair. 2012. “Supply Chain Finance Enabled Early Pay: Unlocking Trapped Value in B2B Logistics.” International Journal of Logistics Systems and Management 12 (3): 334–353.
  • Bems, R., R. C. Johnson, and K. M. Yi. 2010. “Demand Spillovers and the Collapse of Trade in the Global Recession.” IMF Economic Review 58 (2): 295–326.
  • Blome, C., and T. Schoenherr. 2011. “Supply Chain Risk Management in Financial Crises—A Multiple Case-Study Approach.” International Journal of Production Economics 134 (1): 43–57.
  • Bollerslev, T., R. F. Engle, and J. M. Wooldridge. 1988. “A Capital Asset Pricing Model with Time-Varying Covariances.” Journal of Political Economy 96 (1): 116–131.
  • Caniato, F., L. M. Gelsomino, A. Perego, and S. Ronchi. 2016. “Does Finance Solve the Supply Chain Financing Problem?” Supply Chain Management: An International Journal 21 (5): 534–549.
  • Chan-lau, J. A. 2006. “Is Systematic Default Risk Priced in Equity Returns? A Cross-Sectional Analysis Using Credit Derivatives Prices.” IMF Working Paper WP/06/148.
  • Christopher, M., and M. Holweg. 2017. “Supply Chain 2.0 Revisited: A Framework for Managing Volatility-Induced Risk in the Supply Chain.” International Journal of Physical Distribution & Logistics Management 47 (1): 2–17.
  • Danielsson, J., H. S. Shin, and J. P. Zigrand. 2012. “Endogenous Extreme Events and the Dual Role of Prices.” Annual Review of Economics 4 (1): 111–129.
  • Deb, K., and H. Jain. 2014. “An Evolutionary Many-Objective Optimization Algorithm Using Reference-Point-Based Nondominated Sorting Approach, Part I: Solving Problems with box Constraints.” IEEE Trans.” Evolutionary Computation 18 (4): 577–601.
  • Dolgui, A., D. Ivanov, and M. Rozhkov. 2020. “Does the Ripple Effect Influence the Bullwhip Effect? An Integrated Analysis of Structural and Operational Dynamics in the Supply Chain.” International Journal of Production Research 58 (5): 1285–1301.
  • Dolgui, A., D. Ivanov, and B. Sokolov. 2018. “Ripple Effect in the Supply Chain: An Analysis and Recent Literature.” International Journal of Production Research 56 (1-2): 414–430.
  • Fama, E. F., and K. R. French. 2004. “The Capital Asset Pricing Model: Theory and Evidence.” Journal of Economic Perspectives 18 (3): 25–46.
  • Fernandes, N. 2020. “Economic Effects of Coronavirus Outbreak (COVID-19) on the World Economy.” Working Paper. doi:https://doi.org/10.2139/ssrn.3557504.
  • Garthwaite, P. H. 1994. “An Interpretation of Partial Least Squares.” Journal of the American Statistical Association 89 (425): 122–127.
  • Garvey, M. D., S. Carnovale, and S. Yeniyurt. 2015. “An Analytical Framework for Supply Network Risk Propagation: A Bayesian Network Approach.” European Journal of Operational Research 243 (2): 618–627.
  • Gatzert, N., and J. Schmit. 2016. “Supporting Strategic Success Through Enterprise-Wide Reputation Risk Management.” The Journal of Risk Finance 17 (1): 26–45.
  • Gaudenzi, B., G. A. Zsidisin, J. L. Hartley, and L. Kaufmann. 2018. “An Exploration of Factors Influencing the Choice of Commodity Price Risk Mitigation Strategies.” Journal of Purchasing and Supply Management 24 (3): 218–237.
  • Ghadge, A., S. Dani, M. Chester, and R. Kalawsky. 2013. “A Systems Approach for Modelling Supply Chain Risks.” Supply Chain Management: An International Journal 18 (5): 523–538.
  • Ghadge, A., S. Dani, and R. Kalawsky. 2011. “Systems Thinking for Modeling Risk Propagation in Supply Networks.” 2011 IEEE International Conference on Industrial Engineering and Engineering Management, 1685–1689.
  • Ghadge, A., S. Dani, and R. Kalawsky. 2012. “Supply Chain Risk Management: Present and Future Scope.” International Journal of Logistics Management 23 (3): 313–339.
  • Ghadge, A., S. Dani, R. Ojha, and N. Caldwell. 2017. “Using Risk Sharing Contracts for Supply Chain Risk Mitigation: A Buyer-Supplier Power and Dependence Perspective.” Computers & Industrial Engineering 103: 262–270.
  • Greve, H. R., and C. M. Zhang. 2017. “Institutional Logics and Power Sources: Merger and Acquisition Decisions.” Academy of Management Journal 60 (2): 671–694.
  • Guertler, B., and S. Spinler. 2015. “Supply Risk Interrelationships and the Derivation of key Supply Risk Indicators.” Technological Forecasting and Social Change 92: 224–236.
  • Hagigi, M., and K. Sivakumar. 2009. “Managing Diverse Risks: An Integrative Framework.” Journal of International Management 15 (3): 286–295.
  • Hammami, R., C. Temponi, and Y. Frein. 2014. “A Scenario-Based Stochastic Model for Supplier Selection in Global Context with Multiple Buyers, Currency Fluctuation Uncertainties, and Price Discounts.” European Journal of Operational Research 233 (1): 159–170.
  • Heckmann, I., T. Comes, and S. Nickel. 2015. “A Critical Review on Supply Chain Risk–Definition, Measure and Modeling.” Omega 52: 119–132.
  • Ho, W., T. Zheng, H. Yildiz, and S. Talluri. 2015. “Supply Chain Risk Management: A Literature Review.” International Journal of Production Research 53 (16): 5031–5069.
  • Hofmann, E. 2011. “Natural Hedging as a Risk Prophylaxis and Supplier Financing Instrument in Automotive Supply Chains.” Supply Chain Management: An International Journal 16 (2): 128–141.
  • Hosseini, S., N. Morshedlou, D. Ivanov, M. D. Sarder, K. Barker, and A. Al Khaled. 2019. “Resilient Supplier Selection and Optimal Order Allocation Under Disruption Risks.” International Journal of Production Economics 213: 124–137.
  • Hua, Z., Y. Sun, and X. Xu. 2011. “Operational Causes of Bankruptcy Propagation in Supply Chain.” Decision Support Systems 51 (3): 671–681.
  • Huang, B., A. Wu, and D. Chiang. 2018. “Supporting Small Suppliers Through Buyer-Backed Purchase Order Financing.” International Journal of Production Research 56 (18): 6066–6089.
  • Husmann, S., and D. Andreas. 2007. “On Estimating an Asset’s Implicit Beta.” Journal of Futures Markets 27: 961–979.
  • Itzkowitz, J. 2015. “Buyers as Stakeholders: How Relationships Affect Suppliers’ Financial Constraints.” Journal of Corporate Finance 31: 54–66.
  • Ivanov, D. 2020. “Predicting the Impacts of Epidemic Outbreaks on Global Supply Chains: A Simulation-Based Analysis on the Coronavirus Outbreak (COVID-19/SARS-CoV-2) Case.” Transportation Research Part E: Logistics and Transportation Review 136: 101922.
  • Ivanov, D., and A. Dolgui. 2019. “Low-Certainty-Need (LCN) Supply Chains: A New Perspective in Managing Disruption Risks and Resilience.” International Journal of Production Research 57 (15-16): 5119–5136.
  • Ivanov, D., A. Dolgui, B. Sokolov, and M. Ivanova. 2017. “Literature Review on Disruption Recovery in the Supply Chain.” International Journal of Production Research 55 (20): 6158–6174.
  • Ju, Y., and A. Wang. 2013. “Extension of VIKOR Method for Multi-Criteria Group Decision Making Problem with Linguistic Information.” Applied Mathematical Modelling 37 (5): 3112–3125.
  • Jüttner, U., and S. Maklan. 2011. “Supply Chain Resilience in the Global Financial Crisis: An Empirical Study.” Supply Chain Management: An International Journal 16 (4): 246–259.
  • Kale, J. R., and C. Meneghetti. 2014. “Supplier/Customer Considerations in Corporate Financial Decisions.” IIMB Management Review 26: 149–155.
  • Kaufman, G. G., and K. E. Scott. 2003. “What is Systemic Risk, and Do Bank Regulators Retard or Contribute to it?” The Independent Review 7 (3): 371–391.
  • Kim, J. H., and B. S. Ahn. 2019. “Extended VIKOR Method Using Incomplete Criteria Weights.” Expert Systems with Applications 126: 124–132.
  • Kim, Y. H., and D. Henderson. 2015. “Financial Benefits and Risks of Dependency in Triadic Supply Chain Relationships.” Journal of Operations Management 36: 115–129.
  • Lanier Jr, D., W. F. Wempe, and M. Swink. 2019. “Supply Chain Power and Real Earnings Management: Stock Market Perceptions, Financial Performance Effects, and Implications for Suppliers.” Journal of Supply Chain Management 55 (1): 48–70.
  • Li, Y., C. W. Zobel, O. Seref, and D. Chatfield. 2020. “Network Characteristics and Supply Chain Resilience Under Conditions of Risk Propagation.” International Journal of Production Economics 223: 107529.
  • Lian, Y. 2017. “Financial Distress and Customer-Supplier Relationships.” Journal of Corporate Finance 43: 397–406.
  • Liu, Z. 2013. “The Co-Evolution of Integrated Corporate Financial Networks and Supply Chain Networks with Insolvency Risk.” Computational Management Science 10 (2): 253–275.
  • Liu, Z., and J. M. Cruz. 2012. “Supply Chain Networks with Corporate Financial Risks and Trade Credits Under Economic Uncertainty.” International Journal of Production Economics 137 (1): 55–67.
  • Liu, Z., and A. Nagurney. 2011. “Supply Chain Outsourcing Under Exchange Rate Risk and Competition.” Omega 39 (5): 539–549.
  • Lummus, R. R., R. J. Vokurka, and L. K. Duclos. 2005. “Delphi Study on Supply Chain Flexibility.” International Journal of Production Research 43 (13): 2687–2708.
  • Melnyk, S. A., R. R. Lummus, R. J. Vokurka, L. J. Burns, and J. Sandor. 2009. “Mapping the Future of Supply Chain Management: A Delphi Study.” International Journal of Production Research 47 (16): 4629–4653.
  • Mizgier, K. J., J. M. Pasia, and S. Talluri. 2017. “Multi-objective Capital Allocation for Supplier Development Under Risk.” International Journal of Production Research 55 (18): 5243–5258.
  • Mizgier, K. J., S. M. Wagner, and J. A. Holyst. 2012. “Modelling Defaults of Companies in Multi-Stage Supply Chain Networks.” International Journal of Production Economics 135 (1): 14–23.
  • Mostafaie, T., F. M. Khiyabani, and N. J. Navimipour. 2020. “A Systematic Study on Meta-heuristic Approaches for Solving the Graph Coloring Problem.” Computers & Operations Research 120: 104850.
  • Mousavi, M. M., and J. Ouenniche. 2018. “Multi-criteria Ranking of Corporate Distress Prediction Models: Empirical Evaluation and Methodological Contributions.” Annals of Operations Research 271 (2): 853–886.
  • Ng, C. K., J. K. Smith, and R. L. Smith. 1999. “Evidence on the Determinants of Credit Terms Used in Interfirm Trade.” Journal of Finance 54 (3): 1109–1129.
  • Ojha, R., A. Ghadge, M. K. Tiwari, and U. S. Bititci. 2018. “Bayesian Network Modelling for Supply Chain Risk Propagation.” International Journal of Production Research 56 (17): 5795–5819.
  • Oliveira, M., P. R. Kadapakkam, and M. Beyhaghi. 2017. “Effects of Customer Financial Distress on Supplier Capital Structure.” Journal of Corporate Finance 42: 131–149.
  • Opricovic, S. 1998. Multicriteria Optimization of Civil Engineering Systems. Belgrade, Serbia: Faculty of Civil Engineering.
  • Opricovic, S., and G. H. Tzeng. 2004. “Compromise Solution by MCDM Methods: A Comparative Analysis of VIKOR and TOPSIS.” European Journal of Operational Research 156 (2): 445–455.
  • Opricovic, S., and G. H. Tzeng. 2007. “Extended VIKOR Method in Comparison with Outranking Methods.” European Journal of Operational Research 178 (2): 514–529.
  • Osadchiy, N., V. Gaur, and S. Seshadri. 2016. “Systematic Risk in Supply Chain Networks.” Management Science 62 (6): 1755–1777.
  • Pellegrino, R., N. Costantino, and D. Tauro. 2019. “Supply Chain Finance: A Supply Chain-Oriented Perspective to Mitigate Commodity Risk and Pricing Volatility.” Journal of Purchasing and Supply Management 25 (2): 118–133.
  • Petersen, M. A., and R. G. Rajan. 1997. “Trade Credit: Theories and Evidence.” The Review of Financial Studies 10 (3): 661–691.
  • Rajagopal, V., S. P. Venkatesan, and M. Goh. 2017. “Decision-making Models for Supply Chain Risk Mitigation: A Review.” Computers & Industrial Engineering 113: 646–682.
  • Rangel, D. A., T. K. Oliveira, and M. S. A. Leite. 2015. “Supply Chain Risk Classification: Discussion and Proposal.” International Journal of Production Research 53 (22): 6868–6887.
  • Rostamzadeh, R., M. K. Ghorabaee, K. Govindan, A. Esmaeili, and H. B. Khajeh Nobar. 2018. “Evaluation of Sustainable Supply Chain Risk Management Using an Integrated Fuzzy TOPSIS-CRITIC Approach.” Journal of Cleaner Production 175: 651–669.
  • Salas-Molina, F., D. Pla-Santamaria, and J. A. Rodriguez-Aguilar. 2018. “A Multi-Objective Approach to the Cash Management Problem.” Annals of Operations Research 267 (1-2): 515–529.
  • Sayadi, M. K., M. Heydari, and K. Shahanaghi. 2009. “Extension of VIKOR Method for Decision Making Problem with Interval Numbers.” Applied Mathematical Modelling 33 (5): 2257–2262.
  • Scheibe, K. P., and J. Blackhurst. 2018. “Supply Chain Disruption Propagation: A Systemic Risk and Normal Accident Theory Perspective.” International Journal of Production Research 56 (1-2): 43–59.
  • Sharma, A., R. Chauhan, T. Singh, A. Kumar, R. Kumar, A. Kumar, and M. Sethi. 2017. “Optimizing Discrete V Obstacle Parameters Using a Novel Entropy-VIKOR Approach in a Solar air Flow Channel.” Renewable Energy 106: 310–320.
  • Shi, M., and W. Yu. 2013. “Supply Chain Management and Financial Performance: Literature Review and Future Directions.” International Journal of Operations & Production Management 33 (10): 1283–1317.
  • Siegel, A. 1995. “Measuring Systematic Risk Using Implicit Beta.” Management Science 41: 124–128.
  • Sokolinskiy, O., B. Melamed, and B. Sopranzetti. 2018. “Precautionary Replenishment in Financially-Constrained Inventory Systems Subject to Credit Rollover Risk and Supply Disruption.” Annals of Operations Research 271 (2): 971–997.
  • Tang, O., and S. N. Musa. 2011. “Identifying Risk Issues and Research Advancements in Supply Chain Risk Management.” International Journal of Production Economics 133 (1): 25–34.
  • Tavana, M., Z. Li, M. Mobin, M. Komaki, and E. Teymourian. 2016. “Multi-objective Control Chart Design Optimization Using NSGA-III and MOPSO Enhanced with DEA and TOPSIS.” Expert Systems with Applications 50: 17–39.
  • Tiwari, V., P. Kumar, and P. Tandon. 2016. “Advanced Engineering Informatics Product Design Concept Evaluation Using Rough Sets and VIKOR Method.” Adv. Eng. Informatics 30: 16–25.
  • Torabi, S. A., S. F. Ghomi, and B. Karimi. 2006. “A Hybrid Genetic Algorithm for the Finite Horizon Economic lot and Delivery Scheduling in Supply Chains.” European Journal of Operational Research 173 (1): 173–189.
  • Tsai, C. Y. 2017. “The Impact of Cost Structure on Supply Chain Cash Flow Risk.” International Journal of Production Research 55 (22): 6624–6637.
  • Tsao, Y. C. 2019. “Coordinating Contracts Under Default Risk Control-Based Trade Credit.” International Journal of Production Economics 212: 168–175.
  • Wandfluh, M., E. Hofmann, and P. Schoensleben. 2016. “Financing Buyer–Supplier Dyads: An Empirical Analysis on Financial Collaboration in the Supply Chain.” International Journal of Logistics Research and Applications 19 (3): 200–217.
  • World Economic Forum. 2019. “The Global Risks Report 2019.” World Economic Forum, 14th Edition. Accessed May 15, 2020. https://www3.weforum.org/docs/WEF_Global_Risks_Report_2019.pdf.
  • Wu, Y., K. Chen, B. Zeng, H. Xu, and Y. Yang. 2016. “Supplier Selection in Nuclear Power Industry with Extended VIKOR Method Under Linguistic Information.” Applied Soft Computing 48: 444–457.
  • Wu, S. M., H. C. Liu, and L. E. Wang. 2017. “Hesitant Fuzzy Integrated MCDM Approach for Quality Function Deployment: A Case Study in Electric Vehicle.” International Journal of Production Research 55 (15): 4436–4449.
  • Xu, Z., X. G. Ming, M. Zheng, M. Li, L. He, and W. Song. 2015. “Cross-trained Workers Scheduling for Field Service Using Improved NSGA-II.” International Journal of Production Research 53 (4): 1255–1272.
  • Yadav, S., and S. P. Singh. 2020. “Blockchain Critical Success Factors for Sustainable Supply Chain.” Resources, Conservation and Recycling 152: 104505.
  • Zabarankin, M., K. Pavlikov, and S. Uryasev. 2014. “Capital Asset Pricing Model (CAPM) with Drawdown Measure.” European Journal of Operational Research 234 (2): 508–517.
  • Zayed, T., M. Amer, and J. Pan. 2008. “Assessing Risk and Uncertainty Inherent in Chinese Highway Projects Using AHP.” International Journal of Project Management 26 (4): 408–419.
  • Zhao, S., and Q. Zhu. 2018. “A Risk-Averse Marketing Strategy and its Effect on Coordination Activities in a Remanufacturing Supply Chain Under Market Fluctuation.” Journal of Cleaner Production 171: 1290–1299.
  • Zhou, B., and Z. Wang. 2013. “Revisit of Supply Chain Risk Management and Disruption Under the Recent Financial Crisis.” International Journal of Operations Research and Information Systems 4 (1): 51–63.
  • Zhu, Y., L. Zhou, C. Xie, G. J. Wang, and T. V. Nguyen. 2019. “Forecasting SMEs’ Credit Risk in Supply Chain Finance with an Enhanced Hybrid Ensemble Machine Learning Approach.” International Journal of Production Economics 211: 22–33.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.