A novel classification of supply chain risks: Scale development and validation

Purpose: Supply chain has become an essential element for any organization but risks are the major obstacles in achieving the performance even it can disrupt not only the organization but a whole system. Thus it is compulsory to manage the risks efficiently and effectively. Risk cannot be managed until properly identified, there are numerous studies on risk identification, after comprehensive literature, it has been revealed that the study that identifies overall supply chain risk is scaring. The manufacturing sector of any country is considered as the backbone of any economy, in Malaysia it is the second largest sector in economic contribution and highest in productivity level. The aim of this study is to provide a reliable tool to assess the overall supply chain risks of Malaysian manufacturing through a systematic process. Design/methodology/approach: A detail literature review has been done for categorization of overall supply chain risk sources. Then an instrument has been developed from a pool of items. The questionnaire was purified through pretesting, pilot testing (by the exploratory view) and reliability and validity tests. The data were collected by email from Federation of Malaysian Malaysia (FMM-2017) through systemic probability sampling. Total 132 final responses have been considered for exploratory factor analysis through SPSS 23. Findings: The finding of this study revealed that overall supply chain risks can be categories into seven constructs that are supply side risks, process side risks, demand side risks, logistic side risks, collaboration side risks and environment side risks and the final questionnaire is consisting of 57 items. Research limitations/implications: This study covered tier 1 members of the supply chain. Secondly, the supply chain of manufacturing organizations only has been considered. Practical implications: This study will help the managers to understand what kind of risk sources they can face and which type of risks under these risk sources they should consider while decision making. Originality/value: This article will justify the need for Malaysian manufacturing by providing a validated and reliable instrument for the identification and assessment of their risks under major supply chain risk sources

Theoretical Framework Development for Supply Chain Risk Management for Malaysian Manufacturing

Globalization, rapid technological changes and growing competition not only facilitate but also make the supply chain more complex and fragile. Any disruption can disturb many organizations and even whole system. There are many theories and frameworks that present solution but no study is available that theoretically development framework for supply chain risk management. Due to the lack of structured supply chain risk management system the focus of this study is to develop a novel framework for identifying the potential risks and assessment of their effects on supply chain performance. Additionally, evaluate the role of supply chain collaboration in risk mitigation and performance improvement in Malaysian manufacturing sector. This study has highlighted numerous problems of Malaysian organizations and developed a theoretical framework. This framework will guide Malaysian organizations and will present better understanding for managers in resolving these issues. This is a conceptual paper, systematic as well as content analysis have been done for literature review. For future study, there is need to empirically verification of this theoretical framework. The proposed methodology to achieve this framework is; questionnaire will be developed from a pool and will be validate by exploratory view for risk identification. This questionnaire will be distributed among Malaysian manufacturing and data will be analyzed through Structural Equation Modeling (SEM) for risk assessment and mitigation. The theoretical contribution of this study is support of theory of swift, even flow as underpinning theory and information processing theory as supportive theory