Article
An Agency Theory Investigation of Supply Risk Management
Journal of Supply Chain Management
(2003)
Abstract
Managing supply risk is an essential element of the overall supply management task. As the complexity of risk management has increased, responsiveness seems dominated by varying the level of inventory and using multiple supply sources as means of creating buffers. This research uses the framework of agency theory in managing supplier behaviors as a means to reduce supply risk and the impact of detrimental events. Empirical results indicate that purchasing organizations address various sources of supply risk by implementing management techniques that reduce the likelihood that detrimental events will occur. Firm size, purchases as a percentage of sales, and industry characteristics were also found to influence the manner in which supplier behaviors are managed.
Disciplines
Publication Date
June 1, 2003
DOI
10.1111/j.1745-493X.2003.tb00156.x
Citation Information
George A. Zsidisin and Lisa M. Ellram. "An Agency Theory Investigation of Supply Risk Management" Journal of Supply Chain Management Vol. 39 Iss. 3 (2003) p. 15 - 27 Available at: http://works.bepress.com/george-zsidisin/21/