Using fit perspectives to explain supply chain risk management efficacy

Supply chain risk management (SCRM) literature acknowledges that the choice of SCRM strategies should fit with contextual factors. Yet empirical support for this premise is scarce, mainly relies on just a single type of fit analysis, and lacks any consideration of organisational structures. Accordingly, this article combines two perspectives of fit analysis: 'fit as profile deviation' and 'fit as moderation'. The former supports the introduction of two concepts: risk management incoherence (RMI) and risk management efficacy (RME). Whereas RMI refers to the lack of fit between the perceived usefulness of different mitigation strategies and their degree of implementation; RME pertains to the fit between the perceived relevance of different SCRM objectives and the degree to which they are achieved. The latter allows us to posit a negative effect of RMI on RME and a negative moderation of the time assigned to a Risk Manager on that effect. A sample of 106 companies confirms the proposed model. Therefore, this study expands existing literature on contingent SCRM and on organisational structures for SCRM.

Automated summary

The choice of SCRM strategies should fit with contextual factors, and the perceived usefulness of different mitigation strategies and their degree of implementation can influence the effectiveness of risk management. The study also suggests a negative effect of the lack of fit between perceived usefulness and implementation on risk management efficacy, with the time assigned to a Risk Manager moderating this effect.