Ripple effect of disruptions on performance in supply chains: an empirical study

Abstract

PurposeThe present study is performed to identify the propagation mechanism of the ripple effect as well as examine the simultaneous impact of risks on supply chain (SC) performance.Design/methodology/approachA theoretical framework with many hypotheses regarding the relationships between SC risk types and performance is established. The data are collected from a large-scale survey supported by a project of the Japanese government to promote sustainable socioeconomic development for the Association of Southeast Asian Nations (ASEAN) region, with the participation of 207 firms. Structural equation modeling (SEM) is used to test the hypotheses of the theoretical framework.FindingsIt is indicated that human-made risk causes operational risk, while natural risk causes both supply risk and operational risk. Furthermore, the impacts of human-made risk and natural risk on performance are amplified through operational risk.Research limitations/implicationsThis study is one of the first attempts that identifies the propagation mechanism of the ripple effect and examines the simultaneous impact of risks on performance in construction SCs.Originality/valueAlthough many studies on risk management in construction SCs have been carried out, they mainly focus on risk identification or quantification of risk impact. It is observed that research on the ripple effect of disruptions has been very scarce.

Sustainability‐related supply chain risks and supply chain performances: The moderating effects of dynamic supply chain management practices

“…Economic risk (Akbari & McClelland, 2020;Duong, Pham, Truong Quang, et al, 2023;Hofmann et al, 2013;Jianying et al, 2021;Moktadir et al, 2020;…”

“…The evolution of supply chains, driven by globalization, infrastructural improvements, information technology, outsourcing, and offshore manufacturing, has resulted in larger and more complex supply chains (Aman et al, 2022;Duong, Pham, Truong Quang, et al, 2023;Khorana et al, 2022). Consequently, the frequency of operational disruptions has increased, leading to heightened supply chain delicacy and susceptibility, which has made supply chain risk management a significant and challenging problem (Bode & Wagner, 2015;Nisar et al, 2022;.…”

Service-oriented manufacturing supply chain: risks and their resonant effect

“…The research reveals significant risks that emerge within service-oriented manufacturing supply chains and the characteristics and effectiveness of implementing strategies for managing supply chain risks. In the context of a service-oriented manufacturing supply chain, the probability and impact-based risk management models often used in such settings are less effective (e.g., Norrman and Lindroth (2004), Duong et al . (2023a)).…”