Risk Management in Global Supply Chains: An Empirical Study of Multinational Corporations

Degdo Suprayitno

doi:10.37641/jimkes.v13i4.3466

Authors

Degdo Suprayitno Institut Ilmu Sosial dan Manajemen STIAMI, Indonesia

DOI:

https://doi.org/10.37641/jimkes.v13i4.3466

Keywords:

Mitigation Strategy, Multinational Companies, Risk Identification Capability, Supply Chain Disruptions, Supply Chain Resilience

Abstract

In the era of globalization and supply chain complexity, risk management has become crucial for multinational companies to maintain operational resilience. This research identifies gaps in the understanding and implementation of effective risk management strategies in the sector. This research aims to analyze the influence of risk identification capabilities and risk mitigation strategies on supply chain resilience in multinational companies. A quantitative approach was used with a 5-point Likert scale-based questionnaire survey to collect data from executives and managers at MAP. Multiple linear regression analysis was applied to test the relationship between independent and dependent variables. The findings show that risk identification capabilities and risk mitigation strategies have a significant influence on supply chain resilience, with respective contributions of 41.8% and 31.4%. These results emphasize the importance of proactive risk management in improving operational resilience. This research makes a significant contribution to risk management theory and practice in the retail sector, with recommendations for adopting a systematic approach in risk mapping and developing adaptive mitigation strategies.

Downloads

Download data is not yet available.

References

Abe, M., & Ye, L. (2013). Building resilient supply chains against natural disasters: The cases of Japan and Thailand. Global Business Review, 14(4), 567-586.

Adobor, H. (2020). Supply chain resilience: an adaptive cycle approach. The International Journal of Logistics Management, 31(3), 443-463.

Altay, N., & Ramirez, A. (2010). Impact of disasters on firms in different sectors: implications for supply chains. Journal of Supply Chain Management, 46(4), 59-80.

Asamoah, D., Agyei-Owusu, B., Andoh‐Baidoo, F., & Ayaburi, E. (2021). Inter-organizational systems use and supply chain performance: mediating role of supply chain management capabilities. International Journal of Information Management, 58(4), 65-79.

Bandaly, D., Satir, A., Kahyaoglu, Y., & Shanker, L. (2012). Supply chain risk management–I: Conceptualization, framework and planning process. Risk Management, 14(4), 249-271.

Blackhurst, J., Dunn, K. S., & Craighead, C. W. (2011). An empirically derived framework of global supply resiliency. Journal of business logistics, 32(4), 374-391.

Carvalho, V. M., Nirei, M., Saito, Y. U., & Tahbaz-Salehi, A. (2021). Supply chain disruptions: Evidence from the great east japan earthquake. The Quarterly Journal of Economics, 136(2), 1255-1321.

Chen, Y., Shu, T., Chen, S., Wang, S., Lai, K. K., & Gan, L. (2017). Strong–weak collaborative management in coping supply chain disruption risk transmission based on scale-free networks. Applied Economics, 49(39), 3943-3958.

Chowdhury, M. M. H., & Quaddus, M. (2016). Supply chain readiness, response and recovery for resilience. Supply Chain Management: An International Journal, 21(6), 709-731.

Cohen, M., Cui, S., Doetsch, S., Ernst, R., Huchzermeier, A., Kouvelis, P., ... & Tsay, A. A. (2022). Bespoke supply‐chain resilience: the gap between theory and practice. Journal of Operations Management, 68(5), 515-531.

Febrianto, F. R., Amyar, F., & Puspitasari, R. (2024). Analysis of Integrated Audit Approach in Auditing Sustainable Energy Development Programs in State-Owned Enterprises. Jurnal Ilmiah Akuntansi Kesatuan, 12(6), 487-498.

Gunessee, S., Subramanian, N., & Ning, K. (2018). Natural disasters, pc supply chain and corporate performance. International Journal of Operations & Production Management, 38(9), 1796-1814.

Güngör, D., Sharma, M., Dhir, A., & Daim, T. (2022). Supply chain resilience during the covid-19 pandemic. Technology in Society, 68 (3), 324-331.

Gupta, G. (2014). Risks in supply chain management and its mitigation. Iosr Journal of Engineering, 4(1), 42-50.

Hamidu, Z., Boachie-Mensah, F. O., & Issau, K. (2023). Supply chain resilience and performance of manufacturing firms: role of supply chain disruption. Journal of Manufacturing Technology Management, 34(3), 361-382.

Han, N., & Um, J. (2024). Risk management strategy for supply chain sustainability and resilience capability. Risk Management, 26(2), 6.

Hendricks, K. B., Jacobs, B. W., & Singhal, V. R. (2020). Stock market reaction to supply chain disruptions from the 2011 Great East Japan Earthquake. Manufacturing & Service Operations Management, 22(4), 683-699.

Hsieh, C., Chen, S., & Huang, C. (2023). Investigating the role of supply chain environmental risk in shaping the nexus of supply chain agility, resilience, and performance. Sustainability, 15(20), 187-198.

Inoue, H. and Todo, Y. (2020). The propagation of the economic impact through supply chains: the case of a mega-city lockdown against the spread of covid-19. SSRN Electronic Journal 6 (3), 423-431.

Ivanov, D. (2021). Lean resilience: aura (active usage of resilience assets) framework for post-covid-19 supply chain management. The International Journal of Logistics Management, 33(4), 1196-1217.

Jain, V., Kumar, S., Soni, U., & Chandra, C. (2017). Supply chain resilience: model development and empirical analysis. International Journal of Production Research, 55(22), 6779-6800.

Jidda, D., Li, Z., Ashraf, S., Nasir, A., & Amoako, T. (2025). Value of enterprise risk management integration and supply chain performance: mediating role of firm’s resilience capability. Sage Open, 15(1), 54-67.

Jing, S., Ji, H. J., & Hong-bing, L. V. (2024). Empirical study on influencing factors of supply chain resilience of Chinese automobile enterprises. Academic Journal of Business & Management, 6(5), 40-48.

Jüttner, U. and Maklan, S. (2011). Supply chain resilience in the global financial crisis: an empirical study. Supply Chain Management an International Journal, 16(4), 246-259.

Kähkönen, A. K., & Patrucco, A. S. (2022). Guest Editorial: A purchasing and supply management view of supply resilience for better crisis response. Journal of Purchasing and Supply Management, 28(5), 53-67.

Karutz, R., Riedner, L., Vega, L. R., Stumpf, L., & Damert, M. (2018). Compromise or complement? Exploring the interactions between sustainable and resilient supply chain management. International Journal of Supply Chain and Operations Resilience, 3(2), 117-142.

Kashiwagi, Y., Todo, Y., & Matous, P. (2021). Propagation of economic shocks through global supply chains Evidence from Hurricane Sandy. Review of International Economics, 29(5), 1186-1220.

Khan, O., & Burnes, B. (2007). Risk and supply chain management: creating a research agenda. The international journal of logistics management, 18(2), 197-216.

Krimi, I., Bahou, Z., & Al‐Aomar, R. (2024). Resilient and sustainable b2b chemical supply chain capacity expansions: a systematic literature review. Journal of Business and Industrial Marketing, 39(13), 175-199.

Kumar, S., & Anbanandam, R. (2020). Impact of risk management culture on supply chain resilience: An empirical study from Indian manufacturing industry. Proceedings of the Institution of Mechanical Engineers, Part O: Journal of Risk and Reliability, 234(2), 246-259.

Lin, J., Lin, S., Benitez, J., Luo, X. R., & Ajamieh, A. (2023). How to build supply chain resilience: the role of fit mechanisms between digitally-driven business capability and supply chain governance. Information & Management, 60(2), 103747.

Liu, C. X., Shu, T., Wang, S. Y., Chen, S., & Lai, K. K. (2015). Supply chain disruption risk conduction route based on the small world network. Xitong Gongcheng Lilun yu Shijian/System Engineering Theory and Practice, 35(3), 608-615.

López-Castro, L. F., & Solano-Charris, E. L. (2021). Integrating resilience and sustainability criteria in the supply chain network design. A systematic literature review. Sustainability, 13(19), 98-119.

Ma, Y., Chen, L., Shao-dong, M., & Cong-qin, Y. (2014). A study on the risk control of supply chain under the background of globalization. Journal of Industrial and Production Engineering, 31(4), 221-228.

McDougall, N., Wagner, B., & MacBryde, J. (2022). Leveraging competitiveness from sustainable operations: frameworks to understand the dynamic capabilities needed to realise NRBV supply chain strategies. Supply Chain Management: An International Journal, 27(1), 12-29.

Melnyk, S. A. (2014). Understanding supply chain resilience. Supply chain management review, 18(1).

Min, L., & Chin, T. A. (2021). Supply Chain Resilience Research: Theory and Influence Mechanism. Higher Education and Oriental Studies, 1(4), 90-98.

Negri, M., Cagno, E., Colicchia, C., & Sarkis, J. (2021). Integrating sustainability and resilience in the supply chain: A systematic literature review and a research agenda. Business Strategy and the environment, 30(7), 2858-2886.

Nikookar, E., Gligor, D., & Russo, I. (2024). Supply chain resilience: When the recipe is more important than the ingredients for managing supply chain disruptions. International Journal of Production Economics, 272(8), 348-392.

Norrman, A., & Lindroth, R. (2004). Categorization of supply chain risk and risk management. Supply chain risk, 15(2), 14-27.

Norrman, A., & Wieland, A. (2020). The development of supply chain risk management over time: revisiting Ericsson. International Journal of Physical Distribution & Logistics Management, 50(6), 641-666.

Novak, D. C., Wu, Z., & Dooley, K. J. (2021). Whose resilience matters? Addressing issues of scale in supply chain resilience. Journal of Business Logistics, 42(3), 323-335.

Pettit, T., Croxton, K., & Fiksel, J. (2013). Ensuring supply chain resilience: development and implementation of an assessment tool. Journal of Business Logistics, 34(1), 46-76.

Ponis, S. T., & Koronis, E. (2012). Supply chain resilience? definition of concept and its formative elements. The journal of applied business research, 28(5), 921-935.

Ponomarov, S. Y., & Holcomb, M. C. (2009). Understanding the concept of supply chain resilience. The international journal of logistics management, 20(1), 124-143.

Rashid, A., Rasheed, R., Ngah, A. H., Pradeepa Jayaratne, M. D. R., Rahi, S., & Tunio, M. N. (2024). Role of information processing and digital supply chain in supply chain resilience through supply chain risk management. Journal of Global Operations and Strategic Sourcing, 17(2), 429-447.

Roup, A., & Effendy, M. (2025). Risk Analysis of Accounting Information System Security Based on Vulnerability Data From OPENVAS, OWASP ZAP, And NMAP Tools: A Cybersecurity Perspective. Jurnal Ilmiah Akuntansi Kesatuan, 13(3), 433-438.

Sá, M. M. D., Miguel, P. L. D. S., Brito, R. P. D., & Pereira, S. C. F. (2020). Supply chain resilience: the whole is not the sum of the parts. International Journal of Operations & Production Management, 40(1), 92-115.

Scholten, K., Stevenson, M., & van Donk, D. P. (2020). Dealing with the unpredictable: supply chain resilience. International Journal of Operations & Production Management, 40(1), 1-10.

Shi, D. (2004). A review of enterprise supply chain risk management. Journal of systems science and systems engineering, 13, 219-244.

Son, B. G., Chae, S., & Kocabasoglu-Hillmer, C. (2021). Catastrophic supply chain disruptions and supply network changes: a study of the 2011 Japanese earthquake. International Journal of Operations & Production Management, 41(6), 781-804.

Todo, Y., Nakajima, K., & Matouš, P. (2014). How do supply chain networks affect the resilience of firms to natural disasters? evidence from the great East Japan Earthquake. Journal of Regional Science, 55(2), 209-229.

Tokui, J., Kawasaki, K., & Miyagawa, T. (2017). The economic impact of supply chain disruptions from the Great East-Japan earthquake. Japan and the World Economy, 41, 59-70.

Tombido, L. (2025). Resilient and sustainable closed-loop supply chains (CLSCs): a research agenda. Journal of Responsible Production and Consumption, 2(1), 254-287.

Tukamuhabwa, B. R., Stevenson, M., Busby, J., & Zorzini, M. (2015). Supply chain resilience: definition, review and theoretical foundations for further study. International journal of production research, 53(18), 5592-5623.

Tummala, R. and Schoenherr, T. (2011). Assessing and managing risks using the supply chain risk management process (SCRMP). Supply Chain Management an International Journal, 16(6), 474-483.

Um, J., & Han, N. (2021). Understanding the relationships between global supply chain risk and supply chain resilience: the role of mitigating strategies. Supply Chain Management: An International Journal, 26(2), 240-255.

Vanany, I., Zailani, S., & Pujawan, N. (2009). Supply chain risk management: literature review and future research. International Journal of Information Systems and Supply Chain Management (IJISSCM), 2(1), 16-33.

Wicaksana, A., Ho, W., Talluri, S., & Dolgui, A. (2022). A decade of progress in supply chain risk management: risk typology, emerging topics, and research collaborators. International Journal of Production Research, 60(24), 7155-7177.

Wieland, A. and Durach, C. (2021). Two perspectives on supply chain resilience. Journal of Business Logistics, 42(3), 315-322.

Wieland, A., Stevenson, M., Melnyk, S. A., Davoudi, S., & Schultz, L. (2023). Thinking differently about supply chain resilience: what we can learn from social-ecological systems thinking. International Journal of Operations & Production Management, 43(1), 1-21.

Xue, H., Hao, G., Xu, G., & Yang, S. (2021). The impact of supply chain resilience on firm performance--an example from the electronic information industry. Scientific Journal of Economics and Management Research Volume, 3(10), 65-78.

Yang, Y., & Nian, F. (2023). Reconstructing a fractal supply chain network based on geographical characteristics. Nonlinear Dynamics, 111(19), 18113-18128.

Yao, Y., & Fabbe-Costes, N. (2018, October). Can you measure resilience if you are unable to define it? The analysis of Supply Network Resilience (SNRES). In Supply Chain Forum: An International Journal (Vol. 19, No. 4, pp. 255-265). Taylor & Francis.

Zhao, P., Li, Z., Han, X., & Duan, X. (2022). Supply chain network resilience by considering disruption propagation: Topological and operational perspectives. IEEE Systems Journal, 16(4), 5305-5316.

Zhao, Y. (2023, May). Management Based on the Analysis of E-commerce Enterprises Under. In Proceedings of the 8th International Conference on Financial Innovation and Economic Development (ICFIED 2023) (Vol. 237, p. 59). Springer Nature.

Zhu, J., Cheng, Y., & Zhang, Y. (2021). Risk propagation mechanism research based on SITR model of complex supply networks. International Journal of Information Systems and Supply Chain Management (IJISSCM), 14(3), 18-38.