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Understanding econo-political risks: impact of sanctions on an automotive supply chain

Davarzani, Hoda LU ; Farahani, Reza Zanjirani and Rahmandad, Hazhir (2015) In International Journal of Operations & Production Management 35(11). p.1567-1591
Abstract
Purpose - The purpose of this paper is to introduce econo-political risks (EPRs) to supply chains (SCs). Based on case data from an automotive SC, this research identifies the mechanisms through which a subset of EPRs influences Sc operations and outcomes. Design/methodology/approach - An exploratory case study method is employed for theory development. Interviews with SC professionals of three case companies were the primary data source. Company documents, archival records, and direct observation provided further insights into how EPRs are perceived, how they impact a SC, how SC actors react to them, and what the overall performance results are. Findings - The research identifies EPRs in terms of scope (flow of material, money, and... (More)
Purpose - The purpose of this paper is to introduce econo-political risks (EPRs) to supply chains (SCs). Based on case data from an automotive SC, this research identifies the mechanisms through which a subset of EPRs influences Sc operations and outcomes. Design/methodology/approach - An exploratory case study method is employed for theory development. Interviews with SC professionals of three case companies were the primary data source. Company documents, archival records, and direct observation provided further insights into how EPRs are perceived, how they impact a SC, how SC actors react to them, and what the overall performance results are. Findings - The research identifies EPRs in terms of scope (flow of material, money, and knowledge) and time, and provides concrete examples, along with the channels through which their impact unfolds, and the responses available to SC actors. The authors find secondary impacts of EPRs through economic and regulatory channels to be significant, and bankruptcy, strategic reorientation, and single sourcing are common outcomes. By elaborating on the mechanisms through which sanctions impact upon SCs, and the feasible response trajectories, this research can assist SC actors with more effective management of EPRs. Originality/value - This paper is novel for three reasons: first, it introduces EPRs to research into supply chain risk management (SCRM); second, it addresses SC risks in a developing country, a topic largely missing from the literature; and finally, this research focuses on post-event SC risks, whereas the bulk of SCRM literature focuses on the pre-event phase. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Case study, Supply chain management
in
International Journal of Operations & Production Management
volume
35
issue
11
pages
1567 - 1591
publisher
Emerald Group Publishing Limited
external identifiers
  • wos:000366619700005
  • scopus:84944721544
ISSN
0144-3577
DOI
10.1108/IJOPM-01-2013-0021
language
English
LU publication?
yes
id
2b453295-fad7-40d3-970c-ee967078b57e (old id 8556725)
date added to LUP
2016-01-28 09:17:05
date last changed
2017-01-08 03:27:51
@article{2b453295-fad7-40d3-970c-ee967078b57e,
  abstract     = {Purpose - The purpose of this paper is to introduce econo-political risks (EPRs) to supply chains (SCs). Based on case data from an automotive SC, this research identifies the mechanisms through which a subset of EPRs influences Sc operations and outcomes. Design/methodology/approach - An exploratory case study method is employed for theory development. Interviews with SC professionals of three case companies were the primary data source. Company documents, archival records, and direct observation provided further insights into how EPRs are perceived, how they impact a SC, how SC actors react to them, and what the overall performance results are. Findings - The research identifies EPRs in terms of scope (flow of material, money, and knowledge) and time, and provides concrete examples, along with the channels through which their impact unfolds, and the responses available to SC actors. The authors find secondary impacts of EPRs through economic and regulatory channels to be significant, and bankruptcy, strategic reorientation, and single sourcing are common outcomes. By elaborating on the mechanisms through which sanctions impact upon SCs, and the feasible response trajectories, this research can assist SC actors with more effective management of EPRs. Originality/value - This paper is novel for three reasons: first, it introduces EPRs to research into supply chain risk management (SCRM); second, it addresses SC risks in a developing country, a topic largely missing from the literature; and finally, this research focuses on post-event SC risks, whereas the bulk of SCRM literature focuses on the pre-event phase.},
  author       = {Davarzani, Hoda and Farahani, Reza Zanjirani and Rahmandad, Hazhir},
  issn         = {0144-3577},
  keyword      = {Case study,Supply chain management},
  language     = {eng},
  number       = {11},
  pages        = {1567--1591},
  publisher    = {Emerald Group Publishing Limited},
  series       = {International Journal of Operations & Production Management},
  title        = {Understanding econo-political risks: impact of sanctions on an automotive supply chain},
  url          = {http://dx.doi.org/10.1108/IJOPM-01-2013-0021},
  volume       = {35},
  year         = {2015},
}