A Novel Taxonomy for Risks in Agribusiness Supply Chains: A Systematic Literature Review

Abstract

Agribusiness supply chain (ASC) risk is currently a major business problem throughout the world. The current trend of globalisation has affected every business, and supply chain risks have become a concern in logistics and other business processes. Current risk management strategies must address a variety of global and local challenges. To tackle this issue, existing research has analysed risks in agrifood supply chains, ASC risk management, disruption in ASCs, risk assessments of agriculture supply chains and sources of risk facing an agricultural supply chain. However, the existing research has not defined and categorised risks as a basis for managing risks in ASCs. Therefore, the definition and categorisation of risks in the ASC has been overlooked. To address this gap, this paper undertakes a systematic literature review, offering constructs to define and categorise risks in ASCs, and develops a novel taxonomy in ASC risks to enrich future research on ASC risk management. Sixty-one articles from six databases published between 2000 and 2020 underwent descriptive and thematic analysis.

Models Underlying the Success Development of Family Farms in Romania

“…The BMC is an increasingly used tool, in different fields, from identifying critical factors for rural development, to developing rural tourism, social agriculture or strategies for cooperatives [62,63]. It is generally used to describe business models in different industries [14,64].…”

Supply chain sustainability risk decision support model using integrated Preference Selection Index (PSI) method and prospect theory

“…This latter characteristic is distinctively different from operational type risk which is usually having an impact to cost, quality and delivery (Shafiq et al, 2017). In assisting to a better understanding of supply chain risk typologies, several taxonomies of supply chain risks have been earlier reported by Rangel et al (2015), Hudnurkar et al (2017), Shahbaz et al (2019) and Imbiri et al (2021). Meanwhile, considering the categorization of sustainability supply chain risks, a classification model of sustainability risk taxonomy can be referred to in the work of Choirun et al (2020).…”

How can banks and finance companies incorporate value chain factors in their risk management strategy? The case of agro‐food firms

“…Risks in agro and food processing value chains are currently major business concerns globally. Although the risk management strategies of finance companies must consider risk factors emanating from the local and global linkages in an agro‐food value chain, empirical studies to offer clear definitions and categories of value chain risks for determining the probability of corporate bankruptcy in the agro‐food industry are extremely limited in the literature (Imbiri et al, 2021). Although a risk assessment framework that comprises financial and non‐financial factors improves the accuracy of bankruptcy predictions, extant studies on bankruptcy risk factors mostly concentrate on firm‐level financial and accounting measures (Gallagher, 2001).…”

“…Since value chain disruptions aggravate financial losses resulting in the bankruptcy of firms (Eremenko et al, 2020), value chain risks of corporate debtors are increasingly challenging the profitability of financial companies that undertake corporate lending. Incorporating network attributes in risk assessment by firms is all the more crucial for their sustained performance today, as the business environment is in the throes of transformation and will be experiencing disruptions more frequently in the future (Imbiri et al, 2021; OECD, 2020). Past research indicates that including the network attributes of the borrowing firms in the default prediction model significantly increases the precision and accuracy of the model's default estimate (Ascui & Cojoianu, 2019).…”

“…Imbiri et al (2021) systematically reviewed the literature to identify and categorize various risks in the agribusiness value chain. Past research works on the agro‐food value chains have studied risks (Nyamah et al, 2017; Zhao et al, 2020), disruptions (Behzadi et al, 2017, 2018a), and risk management (Behzadi et al, 2018a; Lipinska, 2015).…”