Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/23264
Title: Joint supply chain risk management : an agency and collaboration perspective
Authors: Li, G
Fan, H
Lee, PKC 
Cheng, TCE 
Keywords: Agency theory perspective
Collaborative relationships
Inter-firm practices
Supply chain risk management
Issue Date: 2015
Publisher: Elsevier
Source: International journal of production economics, 2015, v. 164, p. 83-94 How to cite?
Journal: International journal of production economics 
Abstract: As supply chain risks refer to the risks transmitted among supply chain members and supply chain management (SCM) is concerned with close collaboration among chain members to enhance the chains overall performance, we argue that we need to use an SCM perspective in supply chain risk management (SCRM). We identify risk information sharing and risk sharing mechanism as two important joint SCRM practices. Drawing on the literature on agency theory and collaborative relationships, we argue that the effectiveness of these two joint practices in improving financial performance can be strengthened by collaborative relationship characteristics including relationship length, supplier trust, and shared SCRM understanding. We empirically test our conceptual model using the data collected from 350 manufacturing firms in China. The results suggest that both risk information sharing and risk sharing mechanism improve financial performance, and the effectiveness of the former is strengthened by relationship length and supplier trust, while that of the latter is strengthened by shared SCRM understanding. We contribute to research and practice by identifying two useful joint SCRM practices and ascertaining the conditions under which each of the practices is particularly effectively.
URI: http://hdl.handle.net/10397/23264
ISSN: 0925-5273
DOI: 10.1016/j.ijpe.2015.02.021
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