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Risk Management of Manufacturing Multinational Corporations: The Effects of Supply Chain Integration

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Supply Chain Integration for Sustainable Advantages

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Abstract

Through the lens of organizational information processing theory, this study aims to investigate the contingencies of supply chain risk management (SCRM) in manufacturing multinational corporations (MNCs) by exploring the moderating role of international asset dispersion (IAD) in the performance effect of SCRM as well as the counteraction effect of supply chain integration (SCI). Survey data from a sample of manufacturing MNCs were analyzed. Hierarchical regression analysis was conducted to test the proposed hypotheses. The results demonstrate that SCRM improves the operational effectiveness of manufacturing MNCs but this performance effect is attenuated by IAD. Nevertheless, external integration can counteract the negative effect of IAD and ensure the efficacy of SCRM practices. This study sheds light on the SCRM-operational performance relationship by considering how a manufacturing MNC’s IAD may influence the efficacy of SCRM practices and how SCI can attenuate the negative effect of IAD.

This chapter is a revised version of the following journal paper: Hu, W., Shou, Y., Kang, M., & Park, Y. (2020). Risk management of manufacturing multinational corporations: the moderating effects of international asset dispersion and supply chain integration. Supply Chain Management: An International Journal, 25(1), 61–76.

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Acknowledgements

This work was supported by the National Natural Science Foundation of China under Grant Numbers 71472166 and 71821002; and the Humanities and Social Sciences Faculty Development Program of Zhejiang University.

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  1. School of Management, Zhejiang University, Hangzhou, China

    Yongyi Shou & Mingu Kang

  2. Faculty of Economics, Saitama University, Saitama, Japan

    Young Won Park

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Shou, Y., Kang, M., Park, Y.W. (2022). Risk Management of Manufacturing Multinational Corporations: The Effects of Supply Chain Integration. In: Supply Chain Integration for Sustainable Advantages. Springer, Singapore. https://doi.org/10.1007/978-981-16-9332-8_6

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