Risk exists in virtually all firms, and has been
extensively studied in various business contexts. However,
a gap exists in studying risk within purchasing and
supply management. This study has investigated,
through the use of case study data, how risk is defined
within a supply management context. Supply risk was
perceived by purchasing organizations to incorporate its
sources and outcomes. In addition, industry differences
were found in the case study data, where suppliers in the
aerospace industry focus on the threats to customer life
and safety. From the case study data, an empirically
grounded definition of supply risk was provided.
ARTICLE IN PRESS
Map supply
network
Identify risk and its
current location
Assess Risk
Manage Risk
Form collaborative supply
network risk strategy
Implement
supply network
risk strategy
Fig. 1. Supply network risk tool (Harland et al., 2003).
G.A. Zsidisin / Journal of Purchasing & Supply Management 9 (2003) 217–224 223
Theoretical and managerial implications were also
discussed. By establishing a grounded definition of
supply risk, purchasing professionals have a starting
point for creating strategies, which include assessing and
managing supply risk, to better meet customer firm and
consumer requirements