Comprehensive Analysis of Supply Chain Risk Management Strategies

This report analyzes the article "Joint supply chain risk management: An agency and collaboration perspective" by Li et al. (2015), focusing on quality, procurement, and risk (QRP) management in the supply chain. The article emphasizes the importance of risk management capabilities for companies and highlights collaborative actions between supply chain members, particularly information sharing. The authors utilize agency theory to examine the relationship between organizations and suppliers, providing empirical evidence to support quantitative data on risk management. The research, based on data from 350 manufacturing firms in China, concludes that risk sharing and collaborative relationships enhance financial performance. The report underscores the significance of supplier trust, information sharing, and the implementation of risk management frameworks for improved QRP management and organizational effectiveness. The authors' findings suggest that fostering collaborative relationships and ensuring information sharing are crucial for better decision-making and overall success in supply chain management.

Running head: MANAGEMENT
Management
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Author Note

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Li, G., Fan, H., Lee, P.K. and Cheng, T.C.E., 2015. Joint supply chain risk management: An
agency and collaboration perspective. International Journal of Production Economics, 164,
pp.83-94.
The above mentioned article focuses on the quality or procure or risk management
(QRP). This article has specifically discussed on the various attributes of the quality and risk
management in the supply chain industry (Li et al. 2015). The concept of the risk management
has inevitably gained much importance in the recent times. All the companies in the supply chain
industry should look to focus on their risk management capabilities for better services in the
future. The article was published in the year 2015.
The authors of the article are Gang Li, Huan Fan, Peter K.C. Lee and T.C.E Cheng. The
risks in the supply chain will depend on the various attributes of collaborative actions between
members of the supply chain. The risks of the information sharing have been given the particular
focus in this context. The theoretical attributes in this scenario are indeed very crucial here (Li et
al. 2015). Various theoretical factors are included in this article by the authors within the article.
The authors have discussed about the issue that mechanism sharing has to be improved for better
outcomes in the QRP management. The supply chain risk management has been one of the most
crucial aspects for the betterment of the QRP management since the supplier trust must be
increased within the organizations.
The suppliers are the most effective and impactful stakeholders within the business
environment. They have to go through many risks that should be managed properly (Li et al.
2015). The literature review of the article has been constructed on the agency theory that
highlights the relationship between the organizations and their suppliers. The authors have

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provided many empirical evidences that have supported to construct the quantitative data on the
risk management. The risk managers must look to build their strategies on the collaborative
relationships (Li et al. 2015). These relationships based on collaboration would be able to gain a
better insight into the manner. The length of the relationship between the suppliers would be very
interesting for the organizational success and find out the remedies for the risks that are
associated with the situations.
The data collection has been done from the manufacturing firms in China rising up to
350. This article has evidently presented various aspects on the organizational relationships that
would help to deal with the problems (Li et al. 2015). The responses from the participants of
surveys done by collaborators have been presented by the authors of the article. The authors have
come to the conclusion after gathering and analyzing the data that mechanism of risk sharing will
definitely lead to increase the overall financial performance of the companies. The effectiveness
of the collaborative relationship between the suppliers would lead to better activities and
decision making of the organizations. The context of information sharing has also been very
crucial in this scenario.
Therefore, it is pretty clear that the engagements with the supplier trust and collaborative
relationship would result in better QRP management. The practices of the QRP management
must be continued within the organizations on the basis of the supplier trust (Li et al. 2015). The
risk management frameworks would clearly contribute to the better functioning of the
organizations in the positive manner. Risk information sharing is deemed as one of the most
crucial factor for the success of the QRP management. The safety of the workers is primarily
important and this will ensure the positive vibes within the organizational culture.

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The context of the organizational effectiveness still comes under enough importance in
this regard and it can only be achieved through the implementation of the risk management
frameworks (Li et al. 2015). The data collection of the 350 respondents has been quite helpful in
this situation. The authors have undertaken thorough research work on this issue with their best
efforts and assistance from the respondents.

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References
Li, G., Fan, H., Lee, P.K. and Cheng, T.C.E., 2015. Joint supply chain risk management: An
agency and collaboration perspective. International Journal of Production Economics, 164,
pp.83-94.