Risk Management Practices and Supply Chain Disruption Mitigation in Global Supply Networks

Abstract

Purpose: This study examines the relationships between supply chain risk management (SCRM) practices and disruption mitigation effectiveness in global supply networks. Drawing on resource-based view (RBV) and dynamic capabilities theory, this study investigates how four core SCRM practices risk identification, risk assessment, risk mitigation, and risk monitoring individually and collectively influence an organisation's ability to mitigate supply chain disruptions.

Design/Methodology/Approach: Cross-sectional survey data were collected from 487 organisations managing international supply chains across diverse industries between September 2023 and February 2024. Hypothesised relationships were tested using partial least squares structural equation modelling (PLS-SEM), with synergistic effects of integrated SCRM practices examined through hierarchical model comparison.

Findings: All four SCRM practices exert significant positive effects on disruption mitigation effectiveness. Risk mitigation demonstrates the strongest direct influence (β = 0.284, p < .001), followed by risk monitoring (β = 0.212), risk assessment (β = 0.198), and risk identification (β = 0.176). The integrated model explains 56.8% of variance in disruption mitigation effectiveness a statistically significant 12.1 percentage-point improvement over the best individual practice model (p < .001), confirming synergistic effects. Mediation analyses reveal that risk assessment and risk monitoring partially mediate the relationship between risk identification and disruption mitigation effectiveness, with variance accounted for (VAF) of 43.4% and 42.9%, respectively.

Practical Implications: Organisations should develop holistic SCRM capabilities integrating all four practices rather than investing in isolated interventions. Risk mitigation practices represent the highest-priority improvement opportunity given their combination of high importance and relatively moderate current performance levels.

Originality/Value: This study provides robust empirical support for SCRM frameworks across diverse organisational contexts, demonstrating synergistic effects of coordinated SCRM practices and identifying specific mediating mechanisms that amplify disruption mitigation effectiveness.