A scale for measuring organizational risk management maturity in the supply chain

Abstract

PurposeThe purpose of this research is to develop a validated general measure of supply chain risk management maturity (SCRMM) to assess organizational risk management maturity in the context of the supply chain (SC).Design/methodology/approachDimensions and statements measuring SCRMM were developed through a literature review and consultation with experts. The instrument was refined through a pilot study and a full-scale study of 140 SC managers in the USA. A final SCRMM instrument, consisting of 25 statements, was obtained through scale purification, exploratory factor analysis, reliability analysis, and confirmatory factor analysis of construct validity. Cluster analysis was conducted to characterize the organizational groupings with respect to the instrument dimensions.FindingsSCRMM was found to be comprised of the three main dimensions of SC Risk Management Orientation, Enterprise Risk Management Integration (ERMI), and SC Risk Collaboration. ERMI was found to be comprised of the three sub-dimensions of SC Risk Mitigation, Improvement of Risk Management Processes, and Organization Internal Risk Management. Cluster analysis revealed three groups characterized according to SCRMM as leaders, followers, and laggards.Research limitations/implicationsThe findings are based on a sample in the USA, so the SCRMM scale may not generalize to supply chains in other countries or geographic regions.Practical implicationsThe instrument provides a self-assessment and benchmark tool for businesses to advance their SC risk management through different stages of maturity.Originality/valueThis is a pioneering general instrument that treats risk management maturity of the organization in the context of the SC. Participants span many industries and SC positions.

Organizational Learning and Risk Management Maturity: Systematic and Meta-Analyses Approach

“…With this information, the property developer can anticipate and forecast potential risks due to a better appreciation of the dynamics of the project environment and market (Adeleke et al, 2020;Aytodele et al, 2020;Ogunba, 2004;Tripathi et al, 2015). The argument is that where such appreciation or understanding is insufficient, the property development firm lacks risk management maturity (Dellana et al, 2021;Dugeri, 2011). The maturity scale of such organization is deemed naïve and implies that the investment is vulnerable to risk influences (Omer et al, 2019).…”

“…The importance alluded to risk management maturity arises from its definition as the robust development and operationalization of a holistically practical risk management framework that continuously directs a firm's business processes, methods, culture, governance and technology for sustainable and improved performance (Dellana et al, 2021;Mahama et al, 2020). By so doing, the firm reduces the risk effects on its investment and identifies opportunities for competitive advantage within its market.…”

“…By so doing, the firm reduces the risk effects on its investment and identifies opportunities for competitive advantage within its market. Presenting a specific and practical delineation of a risk management maturity framework, Dellana et al (2021) avers that industry-wide successful adoptions of the framework anchor on three phases of orientation, integration and collaboration. This three-phase fragmentation also finds empirical agreement in extant literature (Caiado et al, 2016;Oliva, 2016), and has semblances of the organizational learning concept of knowledge acquisition, integration and collaboration (Belinskia et al, 2020;Kordab et al, 2020;Sari & Sukmasari, 2018).…”

“…The effectiveness of implementing these risk management phases lies in the initiative of the property developer to plan for risk. Dellana et al (2021) posit that this planning depends on a risk management framework that details the manager's risk forecasting and identification capabilities, which is crucial to establishing pathways to mitigate and control them. This argument is like the maxim, "problem identified, is a problem half solved," and for our discussion, may be translated as "risk identified is risk half controlled".…”

Predicting the Investment Risk in Supply Chain Management Using BPNN and Machine Learning

“…( 2) Operational risk: it refers to the factors affecting the cohesion and destroying the cooperation of enterprises in the operation process, including information processing, agreement risk, and profit priority. (3) Internal management risk: it indicates the possible problems of each link and enterprise involved in the operation of the whole supply chain and the impact on the whole network chain, including supply link, manufacturing link, logistics link, and customer demand [21]. This paper only analyzes the internal management risk.…”