Malicious Supply Chain Risk: A Literature Review and Future Directions
Supply chain risk management faces a myriad of challenges. Perhaps the most understudied of which deals with intentional disruptions; that is, those disruptions arising from deliberate actions that can negatively affect supply chain operations and performance. The following chapter focuses on suppliers intentionally undermining the operations of a supply chain through opportunistic behavior such as: deception, product fraud, and contract/trust breeches. Such behavior engenders relational failure and leads to a type of risk that extant models of risk management have neglected. Accordingly, proactively managing this type of risk requires a substantially different management approach. The following presents a review of the innovative work in this domain and subsequently advances a framework for aiding managerial decision making for proactively managing and coping with such intentional risk in a supply chain. This framework encapsulates a three-pronged approach centered on avoiding and detecting, mitigating the impact of, and recovering from this unique type of supply chain risk.
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