Do analytically-oriented supply chains better manage risks?

Abstract

Risk management has emerged as a field of operations management research due to the greater exposure of organizations to internal and external risks, as a result of globalization, outsourcing, reduction in the number of suppliers, and the need to improve cost and inventory management. Although this subject has received attention in recent years, the relationship between analytical orientation and supply chain risk management is little explored. Thus, this research verifies the impact of analytical orientation over supply chain risk management. A questionnaire was applied with micro, small and medium-sized firms of Brazilian Southeast region, obtaining 111 responses. The structural equation modeling was used for analysis and the main conclusions indicate that analytical orientation has a strong and significant impact over supply chain risk management. In this sense, those supply chains that are more analytical manage their risks better, resulting in lower perception of uncertainty.