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Rethinking the role of partnerships in global supply chains: A risk-based perspective

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  • Zeng, Bingcong
  • Yen, Benjamin P.-C.

Abstract

Growing global operations on one hand drive cost down substantially but on the other hand make the supply chain more vulnerable to numerous risks. Confronted with increased risks, companies are more inclined to form partnerships and engage in supply chain collaboration consciously. Such inclination for partnerships simulates thinking of its incentives behind in association with risk management. However, traditional literature, confining its focus to individual enterprise, echoes inadequately on the role of partnerships in supply chain risk management. To bridge this gap, this paper refines the notion of risk in supply chains and proposes a model of supply chain risk system which is able to convey a risk-based view of partnerships in global supply chains. Through analytical inference it is shown that the level of collaboration among partners contributes to the resilience of supply chains. This implies that partnerships can positively affect the integration of supply chain risk system, thus benefiting operations in supply chains. A simulation program has been developed with aim to demonstrate the practical feasibility of the proposed model. Implemented in simulation, two sets of experiments have been conducted for testing the model in actual business scenarios. The experimental results manifest high consistence with the analytical prediction.

Suggested Citation

  • Zeng, Bingcong & Yen, Benjamin P.-C., 2017. "Rethinking the role of partnerships in global supply chains: A risk-based perspective," International Journal of Production Economics, Elsevier, vol. 185(C), pages 52-62.
    • Handle: RePEc:eee:proeco:v:185:y:2017:i:c:p:52-62
    DOI: 10.1016/j.ijpe.2016.12.004
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    References listed on IDEAS

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    4. Lida Safari & Seyed Jafar Sadjadi & Farzad Movahedi Sobhani, 2024. "Resilient and sustainable supply chain design and planning under supply disruption risk using a multi-objective scenario-based robust optimization model," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(11), pages 27485-27527, November.
    5. Liliana Avelar-Sosa & Jorge L. García-Alcaraz & José M. Mejía-Muñoz & Aidé A. Maldonado-Macías & Giner Alor Hernández, 2018. "Government Support and Market Proximity: Exploring Their Relationship with Supply Chain Agility and Financial performance," Sustainability, MDPI, vol. 10(7), pages 1-20, July.
    6. Antonio Zavala-Alcívar & María-José Verdecho & Juan-José Alfaro-Saiz, 2020. "A Conceptual Framework to Manage Resilience and Increase Sustainability in the Supply Chain," Sustainability, MDPI, vol. 12(16), pages 1-38, August.
    7. Zhi Li & Guanghao Jin & Shen Duan, 2018. "Evolutionary Game Dynamics for Financial Risk Decision-Making in Global Supply Chain," Complexity, Hindawi, vol. 2018, pages 1-10, October.
    8. López, Cristina & Ishizaka, Alessio, 2019. "A hybrid FCM-AHP approach to predict impacts of offshore outsourcing location decisions on supply chain resilience," Journal of Business Research, Elsevier, vol. 103(C), pages 495-507.
    9. Satyendra Kumar Sharma & Praveen Ranjan Srivastava & Ajay Kumar & Anil Jindal & Shivam Gupta, 2023. "Supply chain vulnerability assessment for manufacturing industry," Annals of Operations Research, Springer, vol. 326(2), pages 653-683, July.
    10. M. Ali Ülkü & Melek Akgün & Uday Venkatadri & Claver Diallo & Simranjeet S. Chadha, 2020. "Managing Environmental and Operational Risks for Sustainable Cotton Production Logistics: System Dynamics Modelling for a Textile Company," Logistics, MDPI, vol. 4(4), pages 1-20, December.
    11. Maureen S. Golan & Laura H. Jernegan & Igor Linkov, 2020. "Trends and applications of resilience analytics in supply chain modeling: systematic literature review in the context of the COVID-19 pandemic," Environment Systems and Decisions, Springer, vol. 40(2), pages 222-243, June.
    12. Khadija Echefaj & Abdelkabir Charkaoui & Anass Cherrafi & Dmitry Ivanov, 2024. "Design of resilient and viable sourcing strategies in intertwined circular supply networks," Annals of Operations Research, Springer, vol. 337(1), pages 459-498, June.
    13. Dadsena, Krishna Kumar & Sarmah, S.P. & Naikan, V.N.A. & Jena, Sarat Kumar, 2019. "Optimal budget allocation for risk mitigation strategy in trucking industry: An integrated approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 121(C), pages 37-55.
    14. Shashi & Piera Centobelli & Roberto Cerchione & Myriam Ertz, 2020. "Managing supply chain resilience to pursue business and environmental strategies," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1215-1246, March.
    15. Zhuo, Wenyan & Shao, Lusheng & Yang, Honglin, 2018. "Mean–variance analysis of option contracts in a two-echelon supply chain," European Journal of Operational Research, Elsevier, vol. 271(2), pages 535-547.
    16. Yutong Liu & Jian Du & Taewon Kang & Mingu Kang, 2024. "Establishing supply chain transparency and its impact on supply chain risk management and resilience," Operations Management Research, Springer, vol. 17(3), pages 1157-1171, September.

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