How does contigency theory affect assessing supply chain risk management?
Best insight from top research papers
Contingency theory plays a crucial role in assessing supply chain risk management by highlighting the importance of tailoring risk mitigation strategies to specific internal and external environments. Research suggests that the effectiveness of risk management strategies is contingent on various factors, such as past experiences with supplier insolvencies, management control systems, cognitive styles, and buyer-supplier relationships . Proactive supply chain risk management, particularly in the face of challenges like counterfeit prevention and credit risk contagion, requires a holistic approach that considers these contingencies. By understanding the unique contexts in which supply chain risks manifest, organizations can develop more efficient and effective strategies to mitigate these risks and enhance overall supply chain performance.
Answers from top 5 papers
More filters
| Papers (5) | Insight |
|---|---|
Open access•Posted Content 172 Citations | Contingency theory influences proactive supply chain risk management by highlighting the impact of past supplier insolvencies, management control systems, cognitive styles, and buyer-supplier relationships on risk mitigation strategies. |
154 Citations | Contingency theory influences proactive supply chain risk management by highlighting the impact of past supplier insolvencies, management control systems, cognitive styles, and buyer-supplier relationships on risk mitigation. |
| Contingency theory influences supply chain risk management assessment by introducing a new approach based on graph theory and fuzzy preference theory to evaluate associated credit risk contagion. | |
150 Citations | Contingency Theory suggests that the effectiveness of risk mitigation strategies in supply chains depends on internal and external factors, guiding the assessment of efficient risk management approaches. |
9 Citations | Contingency theory, applied from a quality perspective, aids in assessing the impact of counterfeit prevention efforts on supply chain performance, enhancing risk management integration and performance outcomes. |
Related Questions
What are the most relevant concepts in supply chain risk management?4 answersThe most relevant concepts in supply chain risk management include the identification and assessment of risks, development of recommendations to avoid them, and the use of modern integrated, innovative instruments and technologies for effective risk management. Additionally, the importance of standard data structuring methodologies to enhance current SCRM efforts is highlighted, emphasizing the need for structured data collection and analysis to identify vulnerabilities within the supply chain. Theoretical concepts such as the Coase theorem, transaction cost economics, resource-based theory, and agency theory provide a basis for understanding collaboration across supply chain partners, allocation of resources, and the choice between markets and hierarchies for efficient transactions within a firm or with external contractors. Social network theory is also crucial for comprehending relationships among supply chain parties and introducing arm's-length and close ties concepts for effective supply chain risk management.
What is the importance of studying risk management to supply chain management for one organization?5 answersStudying risk management in the context of supply chain management is crucial for organizations. It allows companies to proactively identify, assess, and mitigate potential risks that could disrupt their operations, impact product delivery, harm customer relationships, and damage their reputation. By implementing a structured risk management framework, organizations can prioritize actions to reduce the overall impact of risk events induced by various risk agents. Additionally, standardizing data structuring methodologies enhances risk management efforts by enabling more effective analysis and decision-making processes. In today's complex and unpredictable global trade environment, effective risk management in supply chains is essential for ensuring operational resilience, maintaining customer satisfaction, and sustaining long-term competitiveness.
What are the interesting theories relate to supply chain risk management?5 answersSupply chain risk management (SCRM) is influenced by various interesting theories. The Resource-Based View, Transaction Cost Theory, and Stakeholder Theory are fundamental theories that have shaped SCRM practices. Game theory models have been applied to analyze strategic interactions and decision-making in uncertain supply chain environments, aiding in risk identification, analysis, and mitigation. Organizational theories like Information Processing Theory and Contingency Theory have been commonly studied in SCRM research, offering insights into risk management strategies. Additionally, the role of digitalization in enhancing supply chain resilience has been explored, emphasizing the importance of leveraging technology for effective risk mitigation strategies. Furthermore, blockchain technology has been proposed as a tool to improve supply chain finance risk management, showcasing its potential in enhancing efficiency and security in SCRM practices.
How does contigency theory deal with conflict?5 answersContingency theory deals with conflict by explaining how theory can capture interactions between an organization and its multiple publics regarding real-world issues. It represents a paradigmatic shift in thinking from normative thought and is grounded in how strategic conflict management is practiced. The theory suggests that conflict intervention methods should be matched to the type and stage of development of the conflict. Conflicts are divided into three types: resource-based, objectives-based, and identity-based, each requiring a different mode of engagement. The theory also recognizes the importance of attentional conflict in social facilitation phenomena and suggests that distraction may have various effects on cognition, attitude change, and social behavior. Additionally, contingency theory explains the contagion of civil wars and the role of weak territorial control in facilitating the emergence of regional complexes of conflicts. Overall, contingency theory provides a framework for understanding and managing conflict in various contexts.
What are the risks of supply chain management?5 answersSupply chain management is vulnerable to cyber threats, which can result in data breaches, financial loss, reputational damage, and operational disruptions. Risks related to supply chain quality management include ICT infrastructure, choosing supplier, social responsibility, and supplier reliability. Supply chain finance faces risks that can threaten the completion of transactions and the regular functioning of supply chain finance, which can be managed through digitization. Risks that can disrupt the flow of information, materials, money, and products in supply chain activities include business risks, customer risks, supplier risks, transportation risks, environmental risks, and security risks.
How is "risk" in supply chain defined?5 answersRisk in supply chain is defined as the potential for disruptions or negative events that can impact the flow of goods and services within the network of organizations involved in production and distribution. These disruptions can arise from both external factors, such as extreme weather events, communication outages, and cyberattacks, as well as internal factors like supplier financial challenges and pandemic-induced lockdowns. The classification of risks in supply chain management can be based on predicting the occurrence or on systematic and non-systematic factors. For example, a pandemic like Covid-19 can be classified as an unknown systematic risk that affects all parts of the economy, including the agricultural sector. Supply chain risk management is an integral function of the supply network and faces challenges due to economic policies, globalization, and natural or human-made disasters. Mitigation strategies are necessary to reduce the impact of these risks on the financial performance of organizations and the economy.