A scale for measuring organizational risk management maturity in the supply chain

Abstract

PurposeThe purpose of this research is to develop a validated general measure of supply chain risk management maturity (SCRMM) to assess organizational risk management maturity in the context of the supply chain (SC).Design/methodology/approachDimensions and statements measuring SCRMM were developed through a literature review and consultation with experts. The instrument was refined through a pilot study and a full-scale study of 140 SC managers in the USA. A final SCRMM instrument, consisting of 25 statements, was obtained through scale purification, exploratory factor analysis, reliability analysis, and confirmatory factor analysis of construct validity. Cluster analysis was conducted to characterize the organizational groupings with respect to the instrument dimensions.FindingsSCRMM was found to be comprised of the three main dimensions of SC Risk Management Orientation, Enterprise Risk Management Integration (ERMI), and SC Risk Collaboration. ERMI was found to be comprised of the three sub-dimensions of SC Risk Mitigation, Improvement of Risk Management Processes, and Organization Internal Risk Management. Cluster analysis revealed three groups characterized according to SCRMM as leaders, followers, and laggards.Research limitations/implicationsThe findings are based on a sample in the USA, so the SCRMM scale may not generalize to supply chains in other countries or geographic regions.Practical implicationsThe instrument provides a self-assessment and benchmark tool for businesses to advance their SC risk management through different stages of maturity.Originality/valueThis is a pioneering general instrument that treats risk management maturity of the organization in the context of the SC. Participants span many industries and SC positions.