Defining a common ground for supply chain risk management – a case study in the fast-moving consumer goods industry

Firm Characteristics, Business Environment, Strategic Orientation, and Performance

The purpose of this study is to empirically examine the influence of firm characteristics (size, age, industry type, and ownership) on a firm’s strategic orientation. The business environment, namely market uncertainty and competition intensity, is also analysed in association with the firm’s strategic orientation. Furthermore, the implication of strategic orientation for performance is tested. The study used 1024 data sets of 128 manufacturing firms listed on the Indonesia stock exchange from 2014 to 2021. Data panel regression and independent t-tests were employed for statistical analysis. Adopting Miles and Snow’s strategy typology framework, the findings indicated that the firm size, industry type, and competition intensity significantly influence the firm’s strategic orientation. Small firms preferred to adopt a proactive strategic orientation (prospector and analyser). Firms in the fast-moving consumer goods (FMCG) industry tended to adopt a proactive strategic orientation (prospector and analyser). Strategic orientation was found to positively and significantly influence firm performance. Firms that adopt a proactive strategic orientation (analyser and prospector) showed better performance than defensive ones (reactor and defender).

Evaluating approaches using the Grey-TOPSIS for sustainable supply chain collaboration under risk and uncertainty

Purpose

Collaboration methods are unique strategies that can help organizations hedge against external and internal supply chain risks without stressing their relationships with supply chain partners. However, selecting the most appropriate collaboration method from a given set of strategies is a multifaceted challenge. This paper aims to address this issue.

Design/methodology/approach

The decision maker's dilemma of fighting data uncertainty in input parameters to check the efficacy of a given collaboration or mitigation approach is tackled by the integration of Grey theory with the technique for order of preference by similarity to ideal solution (TOPSIS) method. The proposed technique is applied and tested for an Indian diesel generator-set manufacturer to identify the most apposite set of sustainable collaboration strategies.

Findings

The results showed that when a firm is bidding for different horizontal collaboration strategies across its supply chain system technology and resource-sharing-centered collaboration strategies are the prominent option. In the case of the company's vertical collaboration deployment, the focus should be kept on information sharing to achieve impactful collaboration. The outcome of the analysis helped the Indian manufacturer to adopt transparent order and production information sharing with its regional distributors and core suppliers within its supply chain.

Originality/value

This study demonstrates from a methodological perspective the successful application of the Grey-TOPSIS approach that effectively captures data uncertainty. It also integrates sustainability parameters in collaboration strategy criteria selections.

Collaborative risk management in decentralised multi-tier global food supply chains: an exploratory study

Purpose

The aim of this paper is to explore the value of collaborative risk management in a decentralised multi-tier global fresh produce supply chain.

Design/methodology/approach

This study utilised a mixed methods approach. A qualitative field study was conducted to examine the need for collaborative risk management. The simulation experiments with industry datasets were conducted to assess whether risk-sharing contracts work in mitigating joint risks in parts of and across the supply chain.

Findings

The qualitative field study revealed risk propagation and the inefficiency of company-specific risk management strategies in value delivery. The simulation results indicated that risk-sharing contracts can incentivise various actors to absorb interrelated risks for value creation.

Research limitations/implications

The research is limited to risks relevant to supply chain processes in the Australia–China table grrape supply chain and does not consider product-related risks and the risk-taking behaviours of supply chain actors.

Practical implications

Collaborative risk management can be deployed to mitigate systematic risks that disrupt global fresh produce supply chains. The results offer evidence-based knowledge to supply chain professionals in understanding the value of collaborative risk assessment and management and provide insights on how to conduct collaborative risk management for effective risk management.

Originality/value

The results contribute to the supply chain risk management literature by new collaborative forms for effective risk management and strategic competition of “supply chain to supply chain” in multi-tier food supply chains.