Assessment of supply chain risk: scale development and validation

Purpose – The purpose of this paper is to provide a reliable and accurate instrument to assess the supply chain risk of similar comparable industries. This enables the firms which fall in this category of industry to identify and incorporate suitable risk sources under various risk constructs. This paper also provides a framework to the top management to prioritize the various risk constructs.Design/methodology/approach – A systematic approach is used to develop and validate an instrument for assessing overall risk of supply chain. This includes specifying the domain and dimensionality of a construct, generation of initial pool of items, refinement of the initial items by the expert group, assessment of content validity, evaluation of reliability and construct validity of the scale items. Also a higher order measurement model of structural equation modeling is used to prioritize the various risk constructs.Findings – The process yielded a robust instrument to assess overall risk of the supply chain. Throu...

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