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Organizational Communication and Individual Behavior: Implications for Supply Chain Risk Management

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  • Scott DuHadway
  • Steven Carnovale
  • Vijay R. Kannan

Abstract

Risk is a significant issue for supply chain managers. Not only must they contend with multiple dimensions of risk in decision‐making, they must reconcile decision‐making with broader organizational interests. This study examines the influence of organizational communication regarding supply chain risk on individual decision‐making strategies and the perceptions of risk. A multi‐stage experimental design is applied, in which decision‐makers make decisions across three dimensions of risk and adjust their risk‐taking behavior after being presented with organizational communication regarding supply chain risk levels. The relationship between organizational communication and the perceptions of supply chain risk is then explored after decision‐makers are allowed to adjust their supply chain strategies. The results suggest that decision‐makers adapt sourcing strategies in response to organizational communication regarding supply chain risk. Specifically, they make riskier decisions when the organization communicates improvements in supply chain risk levels. However, when given specific instructions to reduce risk, they do not adjust their supply chain strategies.

Suggested Citation

  • Scott DuHadway & Steven Carnovale & Vijay R. Kannan, 2018. "Organizational Communication and Individual Behavior: Implications for Supply Chain Risk Management," Journal of Supply Chain Management, Institute for Supply Management, vol. 54(4), pages 3-19, October.
    • Handle: RePEc:bla:jscmgt:v:54:y:2018:i:4:p:3-19
    DOI: 10.1111/jscm.12182
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    Cited by:

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    2. Robert Wiedmer & Judith M. Whipple & Stanley E. Griffis & Clay M. Voorhees, 2020. "Resource Scarcity Perceptions in Supply Chains: The Effect of Buyer Altruism on the Propensity for Collaboration," Journal of Supply Chain Management, Institute for Supply Management, vol. 56(4), pages 45-64, October.
    3. Schmidt, Christoph G. & Wuttke, David A. & Heese, H. Sebastian & Wagner, Stephan M., 2023. "Antecedents of public reactions to supply chain glitches," International Journal of Production Economics, Elsevier, vol. 259(C).
    4. Niels J. Pulles & Raymond P.A. Loohuis, 2020. "Managing Buyer‐Supplier Conflicts: The Effect of Buyer Openness And Directness On A Supplier's Willingness to Adapt," Journal of Supply Chain Management, Institute for Supply Management, vol. 56(4), pages 65-81, October.
    5. Jessica L. Darby & David J. Ketchen & Brent D. Williams & Travis Tokar, 2020. "The Implications of Firm‐Specific Policy Risk, Policy Uncertainty, and Industry Factors for Inventory: A Resource Dependence Perspective," Journal of Supply Chain Management, Institute for Supply Management, vol. 56(4), pages 3-24, October.
    6. Garvey, Myles D. & Carnovale, Steven, 2020. "The rippled newsvendor: A new inventory framework for modeling supply chain risk severity in the presence of risk propagation," International Journal of Production Economics, Elsevier, vol. 228(C).
    7. Bojan Obrenovic & Jianguo Du & Danijela Godinic & Diana Tsoy & Muhammad Aamir Shafique Khan & Ilimdorjon Jakhongirov, 2020. "Sustaining Enterprise Operations and Productivity during the COVID-19 Pandemic: “Enterprise Effectiveness and Sustainability Model”," Sustainability, MDPI, vol. 12(15), pages 1-27, July.
    8. David J. Ketchen & Lutz Kaufmann & Craig R. Carter, 2022. "Configurational approaches to theory development in supply chain management: Leveraging underexplored opportunities," Journal of Supply Chain Management, Institute for Supply Management, vol. 58(3), pages 71-88, July.
    9. Meike Schroeder & Sebastian Lodemann, 2021. "A Systematic Investigation of the Integration of Machine Learning into Supply Chain Risk Management," Logistics, MDPI, vol. 5(3), pages 1-17, September.
    10. Julia Hartmann & Sebastian Forkmann & Sabine Benoit & Stephan C. Henneberg, 2022. "A consumer perspective on managing the consequences of chain liability," Journal of Supply Chain Management, Institute for Supply Management, vol. 58(4), pages 58-89, October.
    11. Huang, Qiuping & Zhao, Xiande & Yeung, KwanHo & Ma, Lijun & Yeung, Jeff Hoi-yan, 2021. "Effects of information-processing mechanisms on Internet-based purchase order financing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 146(C).
    12. Folajimi Ashiru & Franklin Nakpodia & Jacqueline J You, 2023. "Adapting emerging digital communication technologies for resilience: evidence from Nigerian SMEs," Annals of Operations Research, Springer, vol. 327(2), pages 795-823, August.
    13. Durach, Christian F. & Wiengarten, Frank, 2020. "Supply chain integration and national collectivism," International Journal of Production Economics, Elsevier, vol. 224(C).
    14. Wissuwa, Florian & Durach, Christian F. & Choi, Thomas Y., 2022. "Selecting resilient suppliers: Supplier complexity and buyer disruption," International Journal of Production Economics, Elsevier, vol. 253(C).

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