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Impact of strategic sourcing, e-procurement and integration on supply chain risk mitigation and performance

Posted on:2011-05-27Degree:Ph.DType:Dissertation
University:State University of New York at BuffaloCandidate:Kim, MinkyunFull Text:PDF
GTID:1449390002952558Subject:Business Administration
Abstract/Summary:
Based on the theoretical background of dynamic capabilities, this study attempts to fill the gap in supply chain risk management literature by examining businesses environments. In addition to business environments, this study reflects business characteristics and organizational culture. This research establishes a research framework of mitigating supply chain risk based on the literature review of supply chain risk management. By studying previous literature on the supply chain risk management, this study found three common themes of risk mitigating strategies in the supply chain: collaboration and cooperation, information sharing and flexibility. Thus, this research investigates the impact of three supply chain practices, strategic sourcing, e-business technologies in supply chain, and supply chain integration which enable firms to have collaboration, information sharing and flexibility with suppliers.;Supply chain risks are categorized in three ways depending upon the sources of supply chain risks. The first set of sources is from the internal risk within firms. The second sources stem from internal risk within the supply chain. The third set of sources is from the external risk outsides of the supply chain. Because supply chain risks have very broad areas, this research focuses on inbound perspective of supply chain risks.;The conceptual model of this research is based on mitigating supply chain risks by implementing supply chain practices such as strategic sourcing, e-business technologies and supply chain integration. On this main conceptual model, this research reflects organizational culture as an internal factor of supply chain risk management, and business environments as an external factor of supply chain risk management. This research framework is composed of supply chain practices which mitigate supply chain risks, business environments which influence supply chain practices as well as supply chain risks, organizational culture which affects supply chain risks, the impact of business characteristics on the relationship between supply chain practices and supply chain risks, and the relationship between supply chain risks and performance.;This research applied the survey methodology to empirically validate the research framework. In order to improve the quality of the survey, this research conducted a three- step approach. First, the survey measurement items were adapted from prior literatures. Second, by having interviews with supply chain professionals, the content validity check was conducted. The feedbacks and comments on the survey were reflected to make a revised version of the survey. Finally, the pilot study was conducted. Thirty-three supply professionals completed the survey. The statistical testing of examining the reliability on the measurement indicators was conducted to eliminate low reliability items. The feedbacks and comments were also received to improve the quality of the survey. Since this research investigated the supply risks, the finalized surveys were distributed to the members of Institute of Supply Management. Collecting 152 surveys from purchasing and supply management executives from the US manufacturing industry, this research uses partial least squares methodology for data analysis.;Next, this research considers the business environments and characteristics in supply chain risk management.;This research also examines the relationship between supply chain risks and the performance. Performance is measured on three dimensions: financial, operational and supply chain performance. The results support the notion that supply chain risks have a negative relationship with performance. If supply and purchasing managers perceive high risks in the supply chain, then the performance is found to be low. If they perceive low risks in the supply chain, the performance is high.;This research contributes to the supply chain management literatures by explicitly raising issues of supply chain risks for managers, by empirically validating the conceptual framework of supply chain practices, supply chain risks and the performance; by examining the impact of organizational culture on supply chain risk and, finally, by filling gaps in the literature on the relationship between supply chain risk management and business environments.;Although this study has limitations arising from the survey methodology, this research can be extended in various ways. Because this study focuses on the manufacturing industry, the research framework can be applied to service industries like the health care industry. Likewise, future studies can investigate the cultural difference between the US and other Asian countries. It will be very worthwhile examining the impact of cultural differences on risk mitigating strategies in supply chains. These are two of many possible extensions of this research. (Abstract shortened by UMI.)...
Keywords/Search Tags:Supply chain, Management, Performance, Business, Strategic sourcing, Impact, Organizational culture, Integration
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