Supply Chain Vulnerability

Supply Chain Vulnerability in Developing Markets: A Research Note

Michael A. Mayo, Ph.D., Department of Marketing, Kent State University, USA Lawrence J. Marks, Ph.D., Department of Marketing, Kent State University, USA

ABSTRACT Few research studies have systematically examined supply chain management and practices in developing markets. Consequently, firms sourcing from vendors in these markets have limited information to assess related risks and opportunities. The present study examines how the concept of supply chain vulnerability, which is gaining the attention of researchers in industrialized and develop markets, might be used to highlight the kind of disruptions and sourcing challenges found in the developing world. Supply chain vulnerability is defined as unexpected variations in the quantity and/or quality of supply flows resulting from the failure of a single, direct vendor (atomistic source) or multiple, collaborative channel partners (holistic source). A chi-square analysis was conducted to compare the types (quantitative or qualitative) and sources (atomistic or holistic) of inbound flow disruptions between developed and developing markets. Results indicated that these markets differ in terms of quantitative rather than qualitative disruptions. Drawing upon previous research, several explanations are offered to account for the results. Recommendations include the need to expand the concept of supply chain vulnerability to include a number of macro level variables to better anticipate disruptions. Keywords: Supply chain vulnerability, supply chain management, developing markets, supply chain disturbances INTRODUCTION As firms seek the major performance gains promised by integrated global sourcing strategies (Sparks and Wagner 2003), it is increasing important both to anticipate the risks and assess the opportunities posed by suppliers from developing markets (Coates 2003). Developing market channels have been reported to be long, financially...