The Effects of Integration with Suppliers on Mitigating Supply Risk

As the structure of supply chains become complex, dealing with risks in supply chains received a lot of attentions. This research investigates the effects of integration with suppliers on mitigating supply risk. In addition, this research also examines how supply risk affects on supply chain performance. By collecting surveys from purchasing and supply managers, this study helps supply managers to recognize the importance of establishing risk mitigating strategies in the supply chain. More importantly, this study empirically supports that integration with suppliers mitigates supply risk and the supply risk influences supply chain performance negatively. Our research results confirm that implementing integrations with suppliers helps to not only prevent the disruptions in the supply chain but also react quickly when disruptions in the supply chain occur. This study contributes to providing empirical evidences for impacts of integration with suppliers on mitigating the supply risk. it also suggests that integration with suppliers is considered as one of the best solutions in risk mitigating strategies in the supply chain. Finally, decreasing supply risks leads to improve supply chain performances.