Science Research Management ›› 2013, Vol. ›› Issue (6): 129-137.

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The impact of supply chain operational risks on firm competitive capability and performance

Xu Dehui, Li Gang, Sun Linyan   

  1. The State Key Laboratory of Mechanic Manufacturing System Engineering, The Key Laboratoryof the Ministry of Education on Process Control and Efficiency Engineering, School of Management, Xi’an Jiaotong University, Xi’an 710049, China
  • Received:2011-09-13 Revised:2012-05-04 Online:2013-06-27 Published:2013-06-18

Abstract: Supply chain risks are increasingly emerging,however the related research has just started. The impact of supply chain operational risk on the uncertainty involving competitive capability and performance of firms is studied by using the method of multiple regression analysis with 176 valid surveys in Chinese manufacturing industry. Results indicate the impact of supply chain operational risk on the uncertainty involving firm competitive capability and performance significantly is not total negative, supply risk impacts the three competitive capabilities, that is, product quality, delivery reliability, and process flexibility negatively; demand risk stimulates enterprise raising product quality and delivery reliability; technology risk boosts firm raising process flexibility. Meanwhile, process flexibility promotes operational performance and financial performance directly, while product quality and delivery dependability indirectly enhance the financial performance through operational performance.

Key words: supply chain risk, operational risk, uncertainty, competitive capability, firm performance

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