Leveraging Supply Chain Visibility to Strengthen Risk Management: Insights from Information Processing Theory

Abstract

Purpose: This research examines the role of supply chain visibility in enhancing supply chain risk management amidst increasing global uncertainties. Drawing on Information Processing Theory, it investigates how visibility across suppliers, customers, and internal operations enables firms to effectively identify, assess, and mitigate risks within their supply chain networks. Design/Methodology/Approach: The study integrates a comprehensive literature review on supply chain visibility, risk management, and information processing, complemented by empirical evidence derived from a survey of 268 manufacturing firms. Findings: The results reveal that supplier visibility and internal operational visibility significantly influence both reactive and proactive dimensions of supply chain risk management. Conversely, customer visibility did not demonstrate a significant relationship with these risk management dimensions. Implications/Originality/Value: This research contributes to the academic discourse on supply chain risk management by empirically demonstrating the differential impact of various visibility dimensions. It also offers actionable guidance for managers, highlighting the strategic importance of fostering supplier and internal visibility as key assets for improved information processing and effective risk mitigation in complex global supply chains.

Keywords

• Supply chain visibility
• Risk management
• Information processing
• Manufacturing firms