A Conceptual Model of Supply Chain Risk Mitigation: The Role of Supply Chain Integration and Organizational Risk Propensity

Yu, Y.; Xiong, W., and Cao, Y., 2015. A conceptual model of supply chain risk mitigation: The role of supply chain integration and organizational risk propensity.Supply chain risk management has drawn great attention from both researchers and practitioners in recent years. Economic globalization and the resultant complexity of the supply chain network plus the uncertainty of the environment makes risk and vulnerability a major challenge to related firms. This paper aims to establish a conceptual model for mitigating supply chain risk by introducing two variables named supply chain integration and organizational risk propensity. Based on extensive literature review, some major propositions are proposed including the following four aspects: supply chain risk is negatively related to supply chain integration; supply chain integration is positively related to company performance; organizational risk propensity moderates the relationship between supply chain risk and supply chain integration; the integrative model is moderated-mediation. The integrative model is theoretically valuable in further exploring the internal path and mechanism of the impact of supply chain risk on a firm's performance. The model is also practically useful in providing suggestions and references for supply chain risk management and supply chain integration. Finally, the future directions for empirical research are also presented.