Duong, A T B; Pham, T; Truong Quang, H; Hoang, T G; McDonald, S; Hoang, T H and Pham, H T (2023) Ripple effect of disruptions on performance in supply chains: An empirical study. Engineering, Construction and Architectural Management, 31(13), pp. 1-22. ISSN 0969-9988
Abstract
Purpose: The present study is performed to identify the propagation mechanism of the ripple effect as well as examine the simultaneous impact of risks on supply chain (SC) performance. Design/methodology/approach: A theoretical framework with many hypotheses regarding the relationships between SC risk types and performance is established. The data are collected from a large-scale survey supported by a project of the Japanese government to promote sustainable socioeconomic development for the Association of Southeast Asian Nations (ASEAN) region, with the participation of 207 firms. Structural equation modeling (SEM) is used to test the hypotheses of the theoretical framework. Findings: It is indicated that human-made risk causes operational risk, while natural risk causes both supply risk and operational risk. Furthermore, the impacts of human-made risk and natural risk on performance are amplified through operational risk. Research limitations/implications: This study is one of the first attempts that identifies the propagation mechanism of the ripple effect and examines the simultaneous impact of risks on performance in construction SCs. Originality/value: Although many studies on risk management in construction SCs have been carried out, they mainly focus on risk identification or quantification of risk impact. It is observed that research on the ripple effect of disruptions has been very scarce.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | disruptions; performance; ripple effect; supply chains |
| Index terms: | methodology, survey, risk identification, risk impact, structural equation modelling, risk management, empirical study, propagation, quantification |
| Subjects: | environmental hazards, financial risk, research methods, engineering process, data collection methods, risk assessment, statistical analysis, measurement and scaling |
| Topics: | Risk Management, Sustainability, Engineering Principles, Cost Management, Research Practice |
| Descriptive scope: | 5 PCTEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here