The Impact of Supplier Involvement in Product Development on Supply Chain Risks and Supply Chain Resilience

Author(s):

  • Grazyna Wieteska1 (University of Lodz, Poland)

Abstract:
Nowadays, the aspects of managing risks and building resilience are crucial for maintaining the continuity of business processes. Therefore, it is highly valuable to recognize those aspects that support such activities. The main purpose of this article is to investigate whether supplier involvement in product development (SIPD) affects the degree of supply chain risk and thus, indirectly impacts supply chain resilience. The study is based on a survey conducted among 500 manufacturing companies, from which several hypotheses have been defined and tested. This allowed the verification of a theoretical model covering the following three research areas: supplier involvement in product development, supply chain risks and supply chain resilience. In particular, the study confirmed that implementation of partnership practices during SIPD positively influences supply risk reduction, while extensive communication during SIPD minimizes operational risk for a company, i.e. risk of human failures and inadequate or failed internal processes. Subsequently, the positive impact of reduced operational risk on SCRES has also been confirmed.

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