The impact of global risks on supply chain performance. An empirical study on construction sector in the COVID-19 pandemic

Abstract

PurposeThis paper aims to identify and assess global risks in the supply chain performance.Design/methodology/approachFirst, global risks are identified and classified according to three criteria: content, probability and context. A set of supply chain performance indicators are then defined by the theory of resource-based view and balanced scorecard. Structural equation modeling is adopted to access risks in the global supply chain.FindingsThis article contributes to the supply chain risk management literature by providing a detailed operationalization of global supply chain risk constructs, e.g. natural disasters, war and terrorism, fire accidents, economic and political instability, social and cultural grievances, decease. Empirical results reveal that the supply chain is predominantly regarded as being vulnerable as the proposed model of risks can explain up to 12.6% variance of supplier performance, 25.2% innovation and learning, 23% internal business, 40.6% customer service and 32.4% finance.Research limitations/implicationsThese risks are relevant contextual variables in strategic supply chain decisions. Supply chain managers should keep in mind acceptable cost/benefit tradeoffs in their firms' mitigation efforts associated with major contingency risks. This research advocates the allocation of scarce resources to adopt the supply chain strategies of avoidance, speculative and postponement.Originality/valueThe application of the strategic content/process/context to explain global supply chain performance is an interesting approach. Moreover, globalization trends and the COVID-19 perspectives are considered to be the main reasons for increasing such complex factors. Data on validating research models collected during the COVID-19 pandemic reflect the topicality of this study.

Supply chain risk assessment in disruptive times: opportunities and challenges

“…In disruptive times like the COVID-19 pandemic or under normal conditions, firms are exposed to various supply chain risks (SCRs) arising from human problems or natural disasters that can severely impact firms' performance on a basic daily (Zhou et al ., 2022). Twenty-four risk sources suggested by Pham et al . (2022c) are increased and magnified challenges for firms during the lockdowns.…”

“…In disruptive times like the COVID-19 pandemic or under normal conditions, firms are exposed to various supply chain risks (SCRs) arising from human problems or natural disasters that can severely impact firms' performance on a basic daily (Zhou et al, 2022). Twenty-four risk sources suggested by Pham et al (2022c) are increased and magnified challenges for firms during the lockdowns. Hence, risk assessment is one step of the risk analysis process aiming to estimate the danger degree of risk occurrence based on qualitative and/or quantitative information (Sharma and Routroy, 2016;Almeida et al, 2019;Sutton, 2006).…”

Sustainability‐related supply chain risks and supply chain performances: The moderating effects of dynamic supply chain management practices

“…Therefore, it is imperative for businesses to adopt proactive measures to manage sustainability‐related supply chain risks. This includes identifying potential risks, developing strategies to mitigate them, and monitoring the effectiveness of these strategies (Giannakis & Papadopoulos, 2016; Pham, Truong Quang, et al, 2022). By doing so, businesses can ensure the long‐term economic sustainability of their supply chains while minimizing the negative impact on the environment and society (Nisar et al, 2022).…”

Rethinking Global Supply Chain Management in a Changing Environment to Develop an Integrated Freight Transportation System in Bangladesh

“…This can singlehandedly remove the post-COVID-19 disruption [31]. It was noted that global supply chain risks arise from natural disasters, war, terrorism, Fire accidents, economic and political instability, social and cultural grievances, and decrease in the post-COVID-19 era [35]. The research identified 30 global risks and categorized them into five different levels -economic, environmental, geographical, societal, and technological risks.…”