Mitigating counterfeit risk in the supply chain: an empirical study

Abstract

Purpose The purpose of this paper is to adopt a contingency theory from a quality perspective to develop a model for assessing the impact of counterfeit prevention efforts on supply chain (SC) performance. Design/methodology/approach Based on the participation of 140 managers across ten industry sectors, a theoretical model is proposed and structural equation modeling is used to examine the relationships among SC risk management integration, SC counterfeit risk orientation (CRO), SC counterfeit risk mitigation (CRM), SC metric consistency (MC) and SC performance (service and cost benefits). Findings Findings suggest that firms with greater SC risk management integration have a stronger orientation toward counterfeit risk, greater maturity in CRM, more consistent SC metrics and better SC performance outcomes. CRO alone was not found to significantly improve SC MC. Research limitations/implications Results are based on managerial perceptions of SC counterfeit risk and performance metrics. Survey respondents were predominantly from the same country (the USA). Practical implications The paper represents a potential quality management framework for SC risk management, in the context of counterfeiting that includes a contingency perspective. Originality/value The study advances knowledge of how firms may address the challenging issue of counterfeiting in the SC. Empirical findings offer a firm-level quality management framework for managerial decision making in the context of counterfeiting.

Development of Key Processes along the Supply Chain by Implementing the ISO 22000 Standard

“…As they rightly emphasize, García-Flores et al [73] show that food logistics has evolved from applying general supply chain management methodologies to addressing specific problems of the food industry, such as sustainability, safety, and perishability, to considering the impact of food supply systems on the triple bottom line of economic, environmental, and social indicators. Food supply chains should therefore implement systems and concepts to improve management processes [74,75]. The implementation of the ISO 22000 standard in food supply chains allows for the development of a well-thought-out and constantly improved management system that contributes to the quick and effective identification of potential risks and threats [46,76].…”

Deceptive counterfeit risk in global supply chains

“…On the contrary, extant research on deceptive counterfeits occurrences, their impact on supply chains and how to prevent deceptive counterfeits in the global B2B SC market is scant. Interestingly, contingent marketing literature is dominated by studies on the perception and attitude of consumers towards counterfeit products (the demand side of counterfeiting), and by anti-counterfeiting strategies for brand managers (Roux et al, 2016;Pueschel et al, 2017;Kros et al, 2019). However, studies considering the counterfeit threat from a supply-side perspective are limited (Staake et al, 2009).…”

“…Extant academic literature appears to offer no discussion around the SC areas/functions that are most prone to counterfeits and are the entry point for how counterfeits enter global supply networks. Counterfeit risk represents a disruptive force to SC stakeholders including suppliers, manufacturers and distributors (Kros et al, 2019), and need careful exploration. Chaudhry and Stumpf (2013) state that counterfeit products should be detected further up the SC network.…”

“…propose mitigation strategies from a SC or strategic procurement perspective (Staake et al, 2009;Zhang and Zhang, 2015;DiMase et al, 2016;Machado et al, 2018;Kros et al, 2019). Therefore, the objectives of this empirical study are to:…”

Contingency Management and Supply Chain Performance in Korea: A COVID-19 Pandemic Approach

“…To better satisfy customer needs in such a dynamic environment, supply chain integration becomes more significant than ever in terms of creating opportunities for organizations to cooperate with supply chain partners. Supply chain risk also will diminish if supply chain integration is increased, and such integration is considered as an antecedent of customer satisfaction [12].…”