Barriers to multi-tier supply chain risk management

Abstract

PurposeMulti-tier supply chain risk management (MSCRM) is an evolving and dynamic field, as any defaults or glitches in supply chains can potentially harm the efficiency and competitiveness of the entire supply chain. This study aims to investigate barriers to MSCRM in the automotive and civil aircraft industries.Design/methodology/approachThis study adopts an inductive case study research design. The case analysis includes two parts. First, the within-case analysis develops case profiles and identifies critical categories. Second, the cross-case analysis compares MSCRM patterns across the cases.FindingsThis study argues that narrow information sharing and communication covering only the immediate supply chain partners obstruct the efficiency of MSCRM. Similarly, high dependency on strategic alliances with suppliers hinders efficient MSCRM. Additionally, relying on information and communication technologies (ICT) increases companies' exposure to risks and poses another barrier to efficient MSCRM.Research limitations/implicationsFurther research should be pursued to expand generalizability and test the validity of the findings using other forms of data collection and methodologies, such as large-scale surveys, experiments or secondary data across different sectors and typical supply networks.Practical implicationsThis study provides empirical evidence on the obstacles faced by companies during the process of MSCRM. These findings can guide practitioners in developing initiatives to overcome these challenges.Originality/valueThis study is among the first to investigate the barriers to MSCRM in the automotive and civil aircraft industries using in-depth case studies across three tiers of the supply chain.