A global supply chain risk management framework: An application of text-mining to identify region-specific supply chain risks

Nowadays global supply chains enable companies to enhance competitive advantages, increase manufacturing flexibility and reduce costs through a broader selection of suppliers. Despite these benefits, however, insufficient understanding of uncertain regional differences and changes often increases risks in supply chain operations and even leads to a complete disruption of a supply chain. This paper addresses this issue by proposing a text-mining based global supply chain risk management framework involving two phases. First, the extant literature about global supply chain risks was collected and analyzed using a text-based approaches, including term frequency, correlation, and bi-gram analysis. The results of these analyses revealed whether the term-related content is important in the studied literature, and correlated topic model clustering further assisted in defining potential supply chain risk factors. A risk categorization (hierarchy) containing a total of seven global supply chain risk types and underlying risk factors was developed based on the results. In the second phase, utilizing these risk factors, sentiment analysis was conducted on online news articles, selected according to the specific type of risk, to recognize the pattern of risk variation. The risk hierarchy and sentiment analysis results can improve the understanding of regional global supply chain risks and provide guidance in supplier selection.