Study On Principal-Agent Risk In Supply Chain Management

Along with the economic globalization and the development of science andtechnology, the market competition environment have taken great changes, thecompetition between enterprises largely become the competition between the supply chainthat the enterprises are in. However, because the supply chain management and enterprisemanagement have essential differences in the management function, the enterprises in thesystem of supply chain are likely to keep some private information for their own interestsin cooperation process, which lead to the asymmetric information, thus the principal-agentproblem is appeared, and can influence the whole supply chain efficiency, even lead tooperating losses or cooperation failure of the member enterprise in supply chain.Therefore, how to avoid the principal-agent risk, promote the cooperation and partnershipbetween enterprises in supply chain development healthily has become an importantproposition. The paper bases on the supply chain risk as the main research object,discusses the supply chain risk though the supply chain management theory andprincipal-agent theory, and points out that "adverse selection" and "moral hazard" areimportant factors on influence of supply chain principal-agent relationship, analyzes theharm of adverse selection and moral hazard problems on supply chain, respectively putforward and verifies the methods and models to solve this two kinds of risks, at the sametime, puts forward related countermeasures to avoid the risk of supply chain. This canreduce the principal-agent problem in the process of cooperation of the enterprises insupply chain and have theoretical and practical significance.