Sustainability risk in supply bases: The role of complexity and coupling

Di Fan; Chris K.Y. Lo; Yi Zhou

doi:10.1016/j.tre.2020.102175

Sustainability risk in supply bases: The role of complexity and coupling

Di Fan, Chris K.Y. Lo, Yi Zhou

The Hong Kong Polytechnic University

Research output: Journal article publication › Journal article › Academic research › peer-review

27 Citations (Scopus)

Abstract

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.

Original language	English
Article number	102175
Journal	Transportation Research Part E: Logistics and Transportation Review
Volume	145
DOIs	https://doi.org/10.1016/j.tre.2020.102175
Publication status	Published - Jan 2021

Keywords

Health and safety
Operational disruption
Risk
Sustainable supply chain

ASJC Scopus subject areas

Business and International Management
Civil and Structural Engineering
Transportation

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

More information

10.1016/j.tre.2020.102175

http://hdl.handle.net/10397/102727

Cite this

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title = "Sustainability risk in supply bases: The role of complexity and coupling",

abstract = "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.",

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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.

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KW - Risk

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DO - 10.1016/j.tre.2020.102175

M3 - Journal article

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JO - Transportation Research Part E: Logistics and Transportation Review

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ER -

Sustainability risk in supply bases: The role of complexity and coupling

Abstract

Keywords

ASJC Scopus subject areas

UN SDGs

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