Examining the role of stakeholder pressure and knowledge management on supply chain risk and demand responsiveness

Abstract

Purpose – The purpose of this paper is to contribute to the supply chain risk management literature by examining how stakeholders place pressure on the firm to engage in risk management activities. Design/methodology/approach – This paper utilizes a survey approach to test the nomological model. The analysis was carried out using structural equation modeling techniques. Findings – The results demonstrate that stakeholders place pressure on the firm to mitigate risk and that knowledge management (KM) and joint planning activities with suppliers serve as mediating roles in the model. The process-oriented model reveals that these factors influence the firm's ability to be responsive to customer demand. Originality/value – The research represents one of the first papers to empirically test how stakeholder theory and KM contributes to risk mitigation activities. Additionally, the paper shows the impact of KM factors on risk mitigation activities. The paper attempts to explain from both a theoretical and empirical perspective how and why firms are engaging in risk mitigation activities and how the impacts demand responsiveness.

Differences in security risk perceptions between logistics companies and cargo owners

“…Previous research has claimed that if risks are perceived differently, it becomes problematic to share them across partners, and ultimately, to fully identify and implement equally effective mitigation strategies across the whole supply chain (Sitkin and Weingart, 1995, Sheffi, 2001, Jüttner, 2005, Rice and Spayd, 2005, Williams et al, 2008, E. Cantor et al, 2014. This phenomenon is also observed in studies related to supply chain security risks.…”

“…In a more recent study, it has been found that risk perceptions may also differ depending on firms' stakeholders engagement and thereby influence decisions and responsive behaviors (E. Cantor et al, 2014). Hence, researchers agree on the necessity of common understanding of supply chain risks and coordinated approaches amongst supply chain members (Jüttner et al, 2003, Ijioui et al, 2008, Manuj and Mentzer, 2008b, Pfohl et al, 2010.…”

“…A coordinated approach with mutual identification of risks, goal settings and planning, continuous communication of problems is needed to reduce information asymmetries between supply chain members (Jüttner, 2005, Pfohl et al, 2010. In addition, E. Cantor et al (2014) emphasize the importance of stakeholder pressure, knowledge management and improved supplier collaboration and joint planning as key pillars to optimally minimize supply chain risks.…”

Supply chain risk mitigation competency: an individual-level knowledge-based perspective

“…Risk mitigation orientation is defined as the supply chain manager's motivation to implement risk mitigation programmes. It is adapted at the individual level from scales by Kocabasoglu, Prahinski, and Klassen (2007) and Cantor et al (2014). We utilised two control variables in our model.…”

An Auditing Framework for Knowledge-Enabled Supply Chain Management: Implications for Sustainability

“…Cantor et al [36] showed the positive role of KM in supply chain risk mitigation. Diaz and Bailey [37] proposed the use of a defined KM framework for inventory control and identify and assess risks associated with this inventory and demand.…”