The effect of supply chain collaboration on firms’ risk management under technology turbulence

This study addresses the question of how supply chain collaboration affects a firm's competitive advantage. Building on the social exchange theory, this study investigates the impact of supply chain collaboration on risk management capabilities (i.e. routine risk management capability and extraordinary risk management capability) that further influence competitive advantages. Moreover, building on a contingency perspective, this study investigates the condition (i.e. technological turbulence) under which supply chain collaboration is more effective in enhancing risk management capabilities. As a result of an analysis of survey data from 264 U.S. manufacturing firms, this study shows that supply chain collaboration positively impacts routine and extraordinary risk management capabilities that further promote competitive advantage. The results also reveal that the positive indirect effects of supply chain collaboration on firms' competitive advantage via routine and extraordinary risk management capabilities are stronger under a higher level of technological turbulence. With the emphasis on the importance of supply chain collaboration under high technological turbulence, the results advise managers to design an implementable risk management framework and adopt specific mitigation strategies for supply chain risks.