Sources of Supply Chain Volatility: A Literature Review

Abstract

Purpose: The purpose of this study was to identify the main source of supply chain volatility based on empirical literature, addressing the gap in existing research where consensus on this matter has been lacking. Methodology: Employing an interpretivist approach, this study utilized a bibliographic and qualitative research method. The researchers systematically reviewed literature from top publishing sites and journals, focusing on titles and abstracts containing the keyword 'supply chain volatility' spanning from 2013 to 2023. Through this process, a taxonomy of 15 articles was developed to synthesize existing knowledge on the subject. Findings: The results of the study indicate that demand variability emerges as the primary source of supply chain volatility, with 60% of the analyzed articles highlighting its significance. This finding underscores the critical role of demand fluctuations in driving supply chain disruptions and challenges. Unique Contribution to Theory, Practice and Policy: This study makes a unique contribution to existing literature by providing empirical evidence and consensus on the main source of supply chain volatility. By synthesizing and categorizing findings from diverse sources, it advances theoretical understanding of the factors underlying supply chain disruptions. The identification of demand variability as the primary source of supply chain volatility offers valuable insights for practitioners seeking to enhance supply chain resilience and mitigate disruptions. Understanding the central role of demand dynamics can inform strategic decision-making and risk management practices within organizations. The findings of this study have implications for policy-makers involved in shaping regulatory frameworks and industry standards related to supply chain management. By recognizing demand variability as a key driver of volatility, policymakers can tailor interventions and incentives to promote stability and efficiency in supply chains.