Dutch Journal of Finance and Management

Dutch Journal of Finance and Management, 2022 - Volume 5 Issue 2, Article No: 22405
https://doi.org/10.55267/djfm/13676

Published Online: 28 Feb 2023

Views: 730 | Downloads: 291

In the ever-evolving landscape of global trade and manufacturing, supply chain resilience has emerged as a vital concern for organizations operating in the manufacturing sector. This research study delves into the critical domain of managing supply chain risk through the integration of Internet of Things (IoT) technologies within the manufacturing sector of Pakistan. With the advent of Internet of Things, the manufacturing industry in Pakistan has witnessed transformative opportunities to enhance operational efficiency and mitigate supply chain vulnerabilities. This qualitative study engaged ten seasoned supply chain professionals through in-depth interviews to discern the multifaceted impact of IoT integration on risk management within the manufacturing sector. The results of this study, analyzed using thematic analysis within Nvivo software, illuminate the implications of using the Internet of Things in supply chain risk management, the aim is to understand how the Internet of things influences and impacts the supply chain risk management process, both internally and externally, and the resulting outcomes. The study is guided by the information processing theory and employs a methodology based on theory to investigate the information requirements and processing capabilities of supply chain risk management supported by the internet of things. The findings of the study reveal that the organizations involved experienced increased data availability, which led to improved process transparency and management. Supply chain risk management also showed enhancements across its various stages, including risk transparency, risk awareness, and risk strategies. These improvements provided a competitive advantage by aligning the information needs with the information processing capabilities. The study provides detailed insights into the structure of internet of things systems, main use cases, and the impact on the supply chain risk management process, offering valuable information for managers. It highlights the benefits of increased data availability, improved process transparency, and management, as well as the implications for personnel and potential barriers. The findings provide valuable insights for Supply chain managers and pave the way for further research in this area.

Supply chain Internet of things Risk Management Technology Supply chain risk management Information processing theory

• Al-Ayed, S. I. and Al-Tit, A. A. (2023) ‘The effect of supply chain risk management on supply chain resilience: The intervening part of Internet-of-Things’, Uncertain Supply Chain Management, 11(1), pp. 179–186. doi: 10.5267/j.uscm.2022.10.009.
• Aven, T. (2016) ‘Risk assessment and risk management: Review of recent advances on their foundation’, European Journal of Operational Research, 253(1), pp. 1–13. doi: 10.1016/j.ejor.2015.12.023.
• Aven, T. et al. (2020) ‘Risk assessment and risk management: Review of recent advances on their foundation’, Industrial Management and Data Systems, 118(3), pp. 1–13. doi: 10.5267/j.uscm.2022.10.009.
• Bedard, J. C. et al. (2008) ‘Risk monitoring and control in audit firms: A research synthesis’, Auditing, 27(1), pp. 187–218. doi: 10.2308/aud.2008.27.1.187.
• Birkel, H. S. and Hartmann, E. (2020) ‘Internet of Things – the future of managing supply chain risks’, Supply Chain Management, 25(5), pp. 535–548. doi: 10.1108/SCM-09-2019-0356.
• Eisenhardt, K. M. et al. (2020) ‘Risk assessment and risk management: Review of recent advances on their foundation’, Industrial Management and Data Systems, 8(3), pp. 1–13. doi: 10.5267/j.uscm.2022.10.009.
• Fan, H. et al. (2017) ‘An information processing perspective on supply chain risk management: Antecedents, mechanism, and consequences’, International Journal of Production Economics, 185, pp. 63–75. doi: 10.1016/j.ijpe.2016.11.015.
• Gold, S. and Schleper, M. C. (2017) ‘A pathway towards true sustainability: A recognition foundation of sustainable supply chain management’, European Management Journal, 35(4), pp. 425–429. doi: 10.1016/j.emj.2017.06.008.
• Harsasi, M. and Minrohayati (2017) ‘The impact of supply chain management practices on competitive advantage’, International Journal of Economic Policy in Emerging Economies, 10(3), pp. 240–247. doi: 10.1504/IJEPEE.2017.086623.
• Hiromoto, R. E., Haney, M. and Vakanski, A. (2017) ‘A secure architecture for IoT with supply chain risk management’, Proceedings of the 2017 IEEE 9th International Conference on Intelligent Data Acquisition and Advanced Computing Systems: Technology and Applications, IDAACS 2017, 1(January 2020), pp. 431–435. doi: 10.1109/IDAACS.2017.8095118.
• Kayis, E., Erhun, F. and Plambeck, E. L. (2013) ‘Delegation vs. control of component procurement under asymmetric cost information and simple contracts’, Manufacturing and Service Operations Management, 15(1), pp. 45–56. doi: 10.1287/msom.1120.0395.
• Kieras, T., Farooq, J. and Zhu, Q. (2021) ‘I-SCRAM: A Framework for IoT Supply Chain Risk Analysis and Mitigation Decisions’, IEEE Access, 9, pp. 29827–29840. doi: 10.1109/ACCESS.2021.3058338.
• Kothari, S. S., Jain, S. V and Venkteshwar, P. A. (2018) ‘The Impact of IOT in Supply Chain Management’, International Research Journal of Engineering and Technology (IRJET), pp. 257–259.
• Kotzab, H. et al. (2015) ‘Supply chain management resources, capabilities and execution’, Production Planning and Control, 26(7), pp. 525–542. doi: 10.1080/09537287.2014.927932.
• Manuj, I. and Mentzer, J. T. (2008) ‘Global supply chain risk management strategies’, International Journal of Physical Distribution and Logistics Management, 38(3), pp. 192–223. doi: 10.1108/09600030810866986.
• Noor, M. A., Khalfan, M. M. A. and Maqsood, T. (2013) ‘The role of procurement practices in effective implementation of infrastructure projects in Pakistan’, International Journal of Managing Projects in Business, 6(4), pp. 802–826. doi: 10.1108/IJMPB-03-2012-0005.
• Purdy, G. (2010) ‘ISO 31000:2009 - Setting a new standard for risk management: Perspective’, Risk Analysis, 30(6), pp. 881–886. doi: 10.1111/j.1539-6924.2010.01442.x.
• Tchankova, L. (2002) ‘Risk identification – basic stage in risk management’, Environmental Management and Health, 13(3), pp. 290–297. doi: 10.1108/09566160210431088.
• Tsang, Y. P. et al. (2018) ‘An Internet of Things (IoT)-based risk monitoring system for managing cold supply chain risks’, Industrial Management and Data Systems, 118(7), pp. 1432–1462. doi: 10.1108/IMDS-09-2017-0384.

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.