Bob Ritchie

Supply chain risk management and performance: A guiding framework for future development

Purpose – The purpose of this paper is to examine the constructs underpinning risk management and explores its application in the supply chain context through the development of a framework. The constructs of performance and risk are matched together to provide new perspectives for researchers and practitioners.Design/methodology/approach – The conceptual and empirical work in the supply chain management field and other related fields is employed to develop a conceptual framework of supply chain risk management (SCRM). Risk in the supply chain is explored in terms of risk/performance sources, drivers, consequences and management responses, including initial approaches to categorization within these. Two empirical cases are used to illustrate the application of the framework.Findings – A new framework is presented that helps to integrate the dimensions of risk and performance in supply chains and provide a categorisation of risk drivers.Research limitations/implications – SCRM is at an early stage of evolu...

An emergent framework for supply chain risk management and performance measurement.

Changes in the ‘shape’ of risk (ie sources, nature, triggers, scale, rapidity and severity of consequences) relating to supply chains pose challenges for risk management and the underpinning discipline domains such as Operations Research that have traditionally provided guidance and support. The aim is to evaluate these challenges, specifically in the context of supply chain risk management and to consider new approaches to support management. An overall Supply Chain Risk Management Framework is constructed, comprising five components—risk drivers, risk management influencers, decision maker characteristics, risk management responses and performance outcomes. The focus is towards the risk management influencers, recognizing that other components have been investigated elsewhere in the operations literature. Four elements are identified within this risk management component, two conventional elements, rewards and risks, and two new elements, timescale and portfolio effects. An empirical case example is employed to illustrate these issues of risk management in the manufacturing sector and to evaluate the approaches employed to manage risk and performance. The conclusion drawn is that the proposed Supply Chain Risk Management Framework with the inclusion of the risk management influencers component provides a more robust description of the factors that affect the nature of the risk management responses in particular situations. This also demonstrates the need for the Operations Research discipline to evolve a more diverse set of risk management tools and approaches (ie both quantitative and qualitative) to effectively address the diversity of issues and contexts.

Taking stock of small business and entrepreneurship research

Purpose – To map and evaluate current research and policy evidence from a major conference against the seven strategic themes published in the UKs Small Business Service policy document; draw conclusions concerning the research underpinning; and provide guidance for the future direction of research.Design/methodology/approach – Evidence is presented from an analysis of 180 papers and research presentations combined with expert opinions and perspectives from participants at the 28th Annual Institute of Small Business and Entrepreneurship Conference in November 2005. The evaluation framework is formulated on the seven themes and includes an analysis of the research methods employed.Findings – Rapid growth evidenced in volume and diversity in small business and entrepreneurship research activity. The international community of researchers is growing with a greater preparedness to share findings and experiences. The engagement of more policy makers, advisors and practitioners together with researchers may im...

Risk assessment and relationship management: practical approach to supply chain risk management

The literature suggests the need for incorporating the risk construct into the measurement of organisational performance, although few examples are available as to how this might be undertaken in relation to supply chains. A conceptual framework for the development of performance and risk management within the supply chain is evolved from the literature and empirical evidence. The twin levels of dyadic performance/risk management and the management of a portfolio of performance/risks is addressed, employing Agency Theory to guide the analysis. The empirical evidence relates to the downstream management of dealerships by a large multinational organisation. Propositions are derived from the analysis relating to the issues and mechanisms that may be employed to effectively manage a portfolio of supply chain performance and risks.

Access to finance for high-tech SMEs: regional differences in China

Differences exist in the pace of regional development in China between the richer Eastern coastal and poorer Western regions. These differences may result from the relative success of national and regional policy initiatives or more simply the ability of businesses to access finance. High-tech businesses are being encouraged by Chinas government as a means of rebalancing regional development from the existing physical resource-intensive industries. In this paper we examine the experiences of high-tech small and medium-sized enterprises (SMEs) in relation to securing finance, evaluating the experiences at the three stages in their development. The empirical evidence, based on seventy-four face-to-face interviews with owners and senior managers of high-tech SMEs and on nine with bank and government officials, facilitates a comparison of the two study regions, Guangdong and Guangxi provinces. The findings indicate significant differences in the availability and nature of financial sources between the two regions. Firms in the more-developed Eastern region experience access to a wider range of funds from both formal and informal sources than their counterparts in the less-developed Western region. Although this was evident at all three stages of the business development cycle, it was more significant during the earlier stages of development. The consequences of such a disparity in financial sources may lead to further exacerbation of the regional differences and hence prove counterproductive in seeking to develop a more balanced strategy of economic development. We conclude by discussing the prospects for improving this present situation through policy initiatives.

Informal Investor Investing and Networks in China:An Exploratory Study

The dominant type of finance supplied to SMEs in China continues to be informal sources deriving from private individuals. However, little is known or understood about the informal investment motives and processes nor the consequent investment performance in emerging economies such as China. This study investigates the functioning of informal investments over the period from 1999 to 2010 when more formal private sector institutions improve but remain relatively weak. The distinctive role that networking and personal trust play in the process of investment activities is highlighted, leading to the conclusion that informal investors preferred to minimize their risk exposure through funding short-term loan finance rather than long-term equity investments. The processes, risk behavior, and return expectations associated with the informal investors differed significantly between short-term and long-term investments. The importance of networking in investment activities seems not to diminish as institutions improve in China.