Driving collaborative supply risk mitigation in buyer-supplier relationships

Abstract

This study develops and tests a theory-driven conceptual model that explains variations in collaborative supply risk mitigation. It is based on data collected from manufacturing firms in Norway. The results show that collaborative risk identification, perception of supply risks, and overall focus on mitigating disruptive risks have a significant direct effect on collaborative supply risk mitigation. Further, an increase in collaborative risk identification strengthens the effect that perceived supply risk has on the level of collaborative risk mitigation, while supplier performance weakens the effect of perceived supply risk on the level of collaborative supply risk mitigation. Finally, the importance-performance map analysis shows that collaborative risk identification and the buying firm’s overall focus on mitigating disruptive risks are the most important factors to explain variations in collaborative risk mitigation efforts. On the basis of the results, relevant theoretical implications are discussed and actionable managerial recommendations are provided. Keywords: supply risk, collaborative supply risk mitigation, supplier performance, collaborative risk identification