Purchasing and supply: An investigation of risk management performance

In a networked environment, the ability to develop and sustain relationships with suppliers is a critical success factor as well as a challenging task for the management of a company. It is recognized that companies become vulnerable to various supply chain disruptions and risks. The identification and management of these risks is therefore crucial for the effective management of the supply chains. In order to select the appropriate risk management actions, the relationship between these actions must be investigated. Even though much research has been conducted in the field of purchasing and supply management, only a small part of it has dealt with the risk management performance of supply chains. This study empirically investigates the supplier orientation, supplier dependency, customer orientation, and integrated systemic buying that influence a company’s supply risk management performance. A survey research design is adapted for the study. Our study shows the statistical (regression) linkages of the variables (supplier orientation, supplier dependency, customer orientation, and systemic purchasing) with supply risk management performance. The results of this study are based on the data collected from 165 large and medium-sized Finnish companies.