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UNCERTAINTY AS AN ANTECEDENT OF THE SUPPLY CHAIN RISK: DOES SUPPLY CHAIN FLEXIBILITY MATTER IN RISK MITIGATION?
Corresponding Author(s) : Jutamat Sutduean
Humanities & Social Sciences Reviews,
Vol. 7 No. 2 (2019): March
Purpose: This study aims to address the existing research gap, as well as to explore the various types of flexibility which could contribute in mitigating supply chain risks.
Methodology: In this regard, we consider three aspects under SCR namely; manufacturing process risk, delivery risk, and supply risk. The study explores the relationships among supply chain risk and environmental uncertainty, and the moderating role of supply chain flexibility by employing data of 91 manufacturing companies and develop a structural equation modelling.
Results: Developing economies are contributing well in the global trade and are responsible for 50% of the generated global output. They present future prospects for economic growth and pose challenges mainly because of immature supply chain operations. Considering the critical role of emerging economies in global supply chain, such as India and China, it is also important to observe the moderating and driving supply chain risk factors in these regions. It is assumed that this study will not only fill the existing gap in the literature of SCRM but will assist researchers and practicing managers, by enabling them to fully understand certain types of supply chain flexibility, thus reducing the SCR under business environments.
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