DETERMINANTS OF STRATEGIC RISK MANAGEMENT IN EMERGING MARKETS SUPPLY CHAINS: THE CASE OF MEXICO

Risk mitigation in global supply chains has grown in importance in recent years, in tandem with globalization and both the commercial and security threats faced by firms both large and small. This study hypothesizes that a firm’s ability to manage risk strategy—and therefore support its competitiveness—is determined by a symbiotic triad of factors: the resources it utilizes; network systems; and performance criteria it employs. The study, comprising 24 in-depth interviews with electronics and IT firms, examines resource utilization through the Resource-Based View (RBV), assesses firms’ proclivity to engage in networks for risk mitigation and competitiveness; and highlights the importance of performance evaluation as a critically important component in supply chain management. Findings reveal that both buyers and suppliers believe that the symbiotic triad can provide them with a competitive advantage in addition to improving operational efficiency, effectiveness and quality. Future research should also extend this pilot investigation to other countries and industries, and utilize a larger sample of firms for quantitative as well as qualitative assessment.Risk management; emerging markets; Supply Chain Management; IT

Determinants of strategic risk management in emerging markets supply chains: the case of Mexico

Risk mitigation in global supply chains has grown in importance in recent years, in tandem with globalization and both the commercial and security threats faced by firms both large and small. This study hypothesizes that a firm?s ability to manage risk strategy? and therefore support its competitiveness?is determined by a symbiotic triad of factors: the resources it utilizes; network systems; and performance criteria it employs. The study, comprising 24 in-depth interviews with electronics and IT firms, examines resource utilization through the Resource-Based View (RBV), assesses firms? proclivity to engage in networks for risk mitigation and competitiveness; and highlights the importance of performance evaluation as a critically important component in supply chain management. Findings reveal that both buyers and suppliers believe that the symbiotic triad can provide them with a competitive advantage in addition to improving operational efficiency, effectiveness and quality. Future research should also extend this pilot investigation to other countries and industries, and utilize a larger sample of firms for quantitative as well as qualitative assessment.La disminuci?n del riesgo en las cadenas de suministro globales ha crecido en importancia en los ?ltimos tiempos, junto con la globalizaci?n, as? como las amenazas comerciales y de seguridad que las empresas, tanto grandes como peque?as, enfrentan. Este estudio plantea la hip?tesis de que la habilidad de una firma para manejar la estrategia de riesgo ?y as? sostener su competitividad- est? determinada por una triada simbi?tica de factores: los recursos que utiliza; los sistemas de interconexi?n; y el criterio de rendi-miento que emplea. Este estudio, que comprende 24 entrevistas a fondo con empresas IT y electr?nicas, examina el uso de recursos a trav?s del Resource-Based View (RBV), eval?a la proclividad de la empresa de interconectarse para mantener su competitividad y mitigar el riesgo; y resalta la importancia de evaluar el rendimiento como un componente cr?tico en la administraci?n de la cadena de suministro (supply chain management). Los resultados revelan que tanto los compradores como los proveedores creen que la triada simbi?tica les puede proporcionar una ventaja competitiva adem?s de mejorar su eficiencia operacional, efectividad y calidad. En tal sentido, las investigaciones futuras deber?n extender este estudio piloto a otros pa?ses e industrias, y utilizar una muestra m?s amplia de firmas tanto para la evaluaci?n cuantitativa como cualitativa