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A conceptual approach for analysing risk in supply networks


Cheng, SK, A conceptual approach for analysing risk in supply networks, Fourth Annual International Symposium on Supply Chain Management Conference Proceedings CD, 4-6 October 2006, Toronto (2006) [Refereed Conference Paper]


Besides lowering costs and improving customer service, sharing of risk has also been identified as an advantage of supply chain collaborations. As network members complement each other to operate interdependently, risk is distributed differentially among the network partners depending on their functional contribution to the collaboration. Consequently, different forms of interdependence are possible with differing risk implications. Due to the complexity in inter-firm dependencies, supply risk within network systems has received limited attention in the supply chain literature to date. Using the Principal-Agent paradigm, this paper provides a framework for understanding the different characteristics and hierarchical distributions of supply risks associated with alternative network relationships between Principal/s and Agent/s. The framework allows researchers and practitioners to more accurately interpret not only the actual problems encountered in the assessment of supply risk within network systems, but also the relevant risk management techniques that are required.

Item Details

Item Type:Refereed Conference Paper
Research Division:Economics
Research Group:Applied economics
Research Field:Industry economics and industrial organisation
Objective Division:Economic Framework
Objective Group:Microeconomics
Objective Field:Industrial organisations
UTAS Author:Cheng, SK (Dr Seu Keow Cheng)
ID Code:89919
Year Published:2006
Deposited By:Management
Deposited On:2014-03-19
Last Modified:2014-03-24

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