Counterfeiting Activities in Manufacturing Versus Service Organizations - A Supply Chain Perspective

Abstract

This research explores the relationship between supply chain (SC) counterfeit risk management efforts and organizational performance in both manufacturing- and service-oriented organizations. Counterfeit risk management is characterized by factors of Counterfeit Risk Mitigation (CRM) and Integration of Risk Management (IRM), while performance is represented by Cost Benefits (CB), Supply Chain Benefits (SCB) and overall Organizational Performance (OP). A structural equation model is tested based on the participation of 139 logistics and SC managers. For service-oriented organizations, the relationship between CRM and both CB and SCB is fully mediated by IRM. Moreover, both CB and SCB have a significant direct positive effect on OP. In the case of manufacturing-oriented organizations, while IRM fully mediates the relationship between CRM and CB, no mediation effect is found in the link between CRM and SCB. Furthermore, no relationship materializes between SCB and OP. The empirical findings of this research offer a firm-level counterfeiting framework for managerial decision-making.