Strategizing risk information sharing framework among supply chain partners for financial performance

Abstract

ABSTRACT Organisations are often reluctant and sometimes postpone sharing risk-related information with their partners. This paper aims to develop and analyse the risk-sharing model to explain the factors contributing to the timely and accurate sharing of risk-related information within the supply chain network. The data are collected from 199 supply chain experts working in different manufacturing companies through a structured questionnaire and then analysed using structural equation modelling. The result of this study reflects that strategic supply chain relationship (SCR) has a significant impact on risk information sharing (RIS) and external information integration (EII) while having an insignificant impact on internal information integration (III). On the other hand, supply chain technology internalisation (SCT) significantly impacts EII, III and risk-sharing mechanism (RSM). This study is one of the few empirical studies conducted to understand the antecedents of risk-sharing mechanisms in any supply chain network to enhance visibility and increase financial performance using the relational and integrational approaches.