Supply chain risk and its impact on performance: A structured literature review

Abstract

Purpose: In the supply chain risk management literature, many reviews have been conducted to provide a full understanding of various aspects such as role of simulation and optimization methods in risk management, classification of risks, classification of risk mitigation strategies, and supply chain risk definitions. However, a structured review of risk impact on performance in supply chains is still lacking. Such a review is useful since the literature implies that maintaining and improving performance in risk environments are critically important to the business survival of firms in supply chains.Design/methodology/approach: This review synthesizes and analyses 48 papers published in journals from 2006 to 2020 based on the following criteria: risk type, impact mechanisms of risk (i.e., direct and indirect), performance, research method, research setting, and risk mitigation strategy.Findings: The findings conclude that the impact of risk on performance is complicated and influenced by many factors namely antecedents, mediators, and moderators.Originality/value: This review contributes to the theoretical development of SCRM research through the analysis of SCR impact mechanisms, and indicate gaps of knowledge and future research opportunities. Moreover, it helps managers to devise appropriate risk mitigation strategies thanks to a full understanding of risk impact mechanisms.