TY - JOUR
T1 - Sustainability risk in supply bases
T2 - the role of complexity and coupling
AU - Fan, Di
AU - Lo, Chris K.Y.
AU - Zhou, Yi
PY - 2021/1
Y1 - 2021/1
N2 - Health, safety, and environmental (HSE) issues are an emerging concern in sustainable supply chain management. Global brands sourcing from high-risk suppliers in emerging markets affect not only brand reputation but also production schedules and product quality. Based on 198 safety and 458 environmental incidents among 318 manufacturing firms in China, we found that incident firms have higher abnormal unsystematic and systematic risk than matched sustainable suppliers without HSE incidents. Reducing operational complexity and coupling can mitigate both likelihood and abnormal risks. The findings have implications for global supply chain managers assessing supplier risk from an HSE perspective.
AB - Health, safety, and environmental (HSE) issues are an emerging concern in sustainable supply chain management. Global brands sourcing from high-risk suppliers in emerging markets affect not only brand reputation but also production schedules and product quality. Based on 198 safety and 458 environmental incidents among 318 manufacturing firms in China, we found that incident firms have higher abnormal unsystematic and systematic risk than matched sustainable suppliers without HSE incidents. Reducing operational complexity and coupling can mitigate both likelihood and abnormal risks. The findings have implications for global supply chain managers assessing supplier risk from an HSE perspective.
KW - Health and safety
KW - Operational disruption
KW - Risk
KW - Sustainable supply chain
UR - http://www.scopus.com/inward/record.url?scp=85097640387&partnerID=8YFLogxK
U2 - 10.1016/j.tre.2020.102175
DO - 10.1016/j.tre.2020.102175
M3 - Article
AN - SCOPUS:85097640387
SN - 1366-5545
VL - 145
JO - Transportation Research Part E: Logistics and Transportation Review
JF - Transportation Research Part E: Logistics and Transportation Review
M1 - 102175
ER -
