An Empirical Study Of Supply Chain Risk Management In The Chinese Manufacturing Firms

Supply Chain Risk Management (SCRM) plays a major role in successfullymanaging firms operations. Based on supply chain management (SCM) theory that hasdeveloped for several decades, SCRM requires specific and adequate responses such astechniques, attitude and strategies for management of risk. Moreover, SCRM must be amanagement function that is inter-organizational in nature and closely related to strategicand operational realities of the activity in question.Recently, supply chain risk poses an increasingly significant effect on the supplychains. A growing number of academicians and practitioners have token attention tosupply chain risk, particularly triggered by a recent series of catastrophic events. Thepurpose of this paper is to empirically analyze the supply chain risk managementfocusing on Chinese manufacturing firms, and investigate the effect/relationship duringmultiple risk sources including supply-side, internal, demand-side and catastrophicenvironment. This paper is based on the findings from an exploratory quantitative surveywith supply chain/logistic managers and MBAs in class.140responses indicate thatsupply chain characteristics, such as a firm’s dependence on core suppliers and customers,the bullwhip effect because of information distortion, are relevant for a firm’s exposureto supply chain risk.Overall, this research methodology is based on a useful method–Partial LeastSquares (PLS), which is a main type of Structural Equation Modeling (SEM). We mapthe measurement model and structural model and then analyze the path coefficient ofeach hypothesis using the software of SmartPLS2.0(M3). The presented approachmodels use the t-statistic as a tool to calculate the impact of disruptions on supply chainin Chinese manufacturing firms. Further, the results of the models advocate that thesevere statement of recent supply chain risks in China. One of our findings reveals thepath, which is supply-side riskâ†'internal riskâ†'demand risk, poses a significant supply chain risks in this analysis.Due to Chinese special environment, those risks exist for many causes in terms ofthe difference between the state-owned firms and the non-stated-owned firms by usingmulti-group analysis with t-statistics.Besides, to improve our performance, it is important for our study to explore themitigation strategies of supply chain risk. The paper contributes to operationsmanagement research and provides several suggestion including avoidance, control,cooperation and postponement.