Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments February 7, 2023 erstellt
Description:
Supply chain risk mitigation is an essential business activity as firms engage in more complex supply chains. This complexity is being exacerbated by the higher levels of competition, due to changing customer needs and increased volatility in supply markets, prevalent in supply chains. We propose, and test, three strategies for risk mitigation: relationships, monitoring and sourcing, in a transitional economy. Chinese business practices are characterized by the importance of relationships, both formal and informal, to mitigate risks, whereas the transactions cost analysis approach considers monitoring and alternative sources of supply as part of a risk mitigation framework. China is characterized by high levels of political connections at all levels of society but especially in business. These close ties significant effects on supply chain relationships both domestically and internationally. This research tests the effects of political connections and competitive intensity on three supply chain risk mitigation strategies and the consequent impacts on trust and supply chain performance using a sample of 217 Chinese manufacturers. The results show that political connections augment feelings of benevolence in relationships but reduce the possibility for firms to engage in relationship and monitoring risk management strategies. Furthermore competitive intensity has a significant positive effect on supply chain risk management strategies and performance showing that competition is an driver of increased performance across the supply chain