Control Supply Chain Risks in Digital Transformation: A New Way to Improve Supply Chain Resilience

Control Supply Chain Risks in Digital Transformation: A New Way to Improve Supply Chain Resilience

Yang Gao, Yubing Leng, Biaoan Shan
Copyright: © 2022 |Pages: 18
DOI: 10.4018/JOEUC.298680
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Abstract

Digital transformation contributes to enterprise supply chain resilience, but how to control the risks involved and whether this control contributes to supply chain resilience remains to be explored. This paper aims to clarify the relationship between risk control and resilience in the process of digital transformation and to construct a digital transformation supply chain risk (DTSCR) control process system. In this paper, we first use the SLRs method to retrieve 469 papers to construct a dimensional system of DTSCR from the theoretical perspective; we then test whether DTSCR control helps supply chain resilience through a structural equation model; finally, based on the case study of the institute of building materials of China Academy of Building Research, we use a Bayesian believe network to construct a risk control system. Our research contributes to existing literature by improving supply chain resilience from a risk perspective, and the risk control system innovatively constructed in this paper is also of significance for enterprises to carry out DTSCR control in practice.
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1. Introduction

The outbreak of COVID-19 epidemic posed an unprecedentedly severe challenge to enterprises, leading to supply chain disruptions of numerous companies, thus supply chain disruption has become an important topic of global concern. It has been pointed out that unexpected catastrophic events can bring awareness to the essentiality of recovering from supply chain disruptions and supply chain resilience (Ciccullo et al. 2018; Ivanov et al. 2017). How to mitigate the supply chain disruptions and assist in supply chain recovery has become an important research issue (Luo and Zhu 2020; Ivanov and Dolgui 2020). Meanwhile, to address supply chain disruptions, many flexible companies have started to adopt digital transformation as an effective way to cope with the epidemic crisis. They believe that the digital transformation approach can help them break the shackles of supply chain disruptions under the epidemic (White and Censlive 2020; Tan, Cai, and Zhang 2019). Some scholars have also confirmed the impact of digital transformation on supply chain resilience (Aggarwal, Srivastava, and Bharadwaj 2020; Ju, Hou, and Yang 2021; Faruquee, Paulraj, and Irawan 2021), however, they ignore the digital transformation poses a risk to the supply chain, which is detrimental to recovery. Therefore, it is really meaningful to explore the supply chain risks in the process of digital transformation, clarify the relationship between supply chain risk control and supply chain resilience in digital transformation, and finally construct the process system of supply chain risk under digital transformation (Yang et al. 2021; Raghunath and Devi 2018; Sajjad 2021).

Currently, supply chain resilience research based on a digital transformation supply chain risk (DTSCR) control perspective suffers from three deficiencies: first, previous academic research focused on explaining how digital transformation could improve supply chain resilience, such as improving capabilities in digital transformation could alleviate uncertainty of supply chain disruptions (Srinivasan and Swink 2018), mitigate digital disruptions and avoid future supply chain disruptions as much as possible (Sharma et al. 2017; Dolgui, Ivanov, and Sokolov 2018), and improving supply chain resilience by establishing automated supply chain processes (Golpîra 2017). However, they ignore the risks that digital transformation itself can bring to the supply chain. Second, the relationship between DTSCR control and supply chain resilience needs to be further clarified, which is necessary to the development of enterprise digital transformation. Third, existing research is short of a DTSCR control process system. Although a small number of studies have dealt with the construction of a supply chain risk control system, it lacks the connection with digital transformation. The whole process of digital transformation risk control lacks integrity, and the functions of prediction and diagnosis emphasized by risk control are not reflected.

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