Supply Chain Vulnerability, Mitigation Strategy And Outcomes: The Role Of Risk Management Culture As Moderator
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Date
2014-03
Authors
Kurniawan, Rofyanto
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
Supply chain development is facing increasingly tough competition and a more
vulnerable environment. The objective of this thesis is to study the extent of
mitigation strategy in Indonesia environment to counter supply chain vulnerability.
Moderated hierarchical regression is used to examine the role of risk management
culture as the moderator between supply chain vulnerability and mitigation strategy.
The samples are 147 manufacturing firms in Indonesia. The results indicated that
managers acknowledge the vulnerabilities of supply chain activities in Indonesia
environment. Mitigation strategies have been adopted to reduce unpredictable events
that may disrupt supply chain operation.
Information deviation has been regarded as the most influential factor
contributing to supply chain vulnerability. However, environment vulnerability is the
most probable due to natural disasters, man-made disasters and other economic
factors. The increasingly risk exposure within supply chain activities requires a
culture that made risk management the concern of every employees. This study
contributes to the direction of mitigation strategy development in a vulnerable
environment. Manufacturing firms are required to balance between effectiveness
and agility to maintain a sustain operation. The results showed that pro-active
collaborations with the suppliers and customers are the requirement in mitigation
strategy rather than reactive efforts focusing on inventories.
Description
Keywords
Supply chain vulnerability , management culture as moderator