How internal integration, information sharing, and training affect supply chain risk management capabilities

Abstract

Purpose The purpose of this paper is to determine if internal integration, information sharing, and training constitute direct antecedents to organizations’ warning and recovery capabilities. Assuming that organizations periodically face various supply chain risks, the authors intend to show that managers can develop these antecedent competencies in ways that bolster their supply chain risk management (SCRM) capabilities. Design/methodology/approach To understand the relationships between the antecedents and SCRM capabilities, the authors used Q-sorts and confirmatory factor analysis to develop new warning and recovery measures. The authors then collected survey data from 231 hospital supply managers and analyzed these records using structural equation modeling. Findings The results indicate that internal integration and training positively affect organizations’ warning and recovery capabilities, in both a direct and indirect manner. The authors also illustrate how managers can leverage their SCRM capabilities to affect operational performance. Research limitations/implications These results suggest that by developing antecedent competencies like internal integration and training, firms may bolster their warning and recovery capabilities, and ultimately operational performance of the organization. Originality/value The findings provide hospital supply organizations and other inventory management teams with a novel approach to managing an evolving array of supply chain risks. Rather than investing in costly risk management techniques, like inventory stocks, organizations can use internal integration and training to improve their SCRM capabilities.