Supply Chain Risk Management Strategies and Business Performance: A Conceptual Framework.

Abstract

Supply chain risk imposes a negative impact on organizations performance and often leads to declining sales, cost increases, and service failures for the company. In this circumstance, it is highly important for organizations to effectively manage the supply chain risk. Firms with a higher ability to return to the original condition after disruption exhibit better performance. Therefore, the extant literature is reviewed to identify factors that enhance firm's resilience to disruption which consequently improve business performance. Supported by structural contingency theory, this study proposes that strategic leadership, business continuity planning, and resilience to disruption impact business performance. This paper contributes to literature by developing a comprehensive model that strengthen firm's resilience to disruption and lead to superior business performance.