Title: Supply chain risk management for a sustainable strategy: a study in the furniture industry

Authors: Fabrizio Baldassarre; Raffaele Silvestri; Francesca Ricciardi; Savino Santovito

Addresses: Department of Economics, Management and Business Law, University of Bari Aldo Moro, Largo Abbazia Santa Scolastica, 53 70124 Bari, Italy ' Department of Economics, University of Foggia, Plesso di Economia – Via Romolo Caggese, 71121 Foggia, Italy ' Istituto di Metodologie per l'Analisi Ambientale, CNR, C. da S. Loja – Zona Industriale, 85050 Tito Scalo (PZ), Italy ' Department of Economics and Finance, University of Bari Aldo Moro, Largo Abbazia Santa Scolastica, 53 70124 Bari, Italy

Abstract: Risk prevention and mitigation strategies, deriving from total-quality-oriented internalisation choices, cannot be observed regardless of the strategic orientation adopted by a business in managing its supply chain. The aim of the paper is to investigate how a business can manage the risk of social sustainability deriving from total-quality-oriented internalisation strategies. A case study is conducted in the furniture industry, for which data are collected through qualitative interviews with the management. The data shows that the supplier's involvement in implementing buyers' marketing strategy can support the latter in mitigating the social sustainability risk. The sharing of strategic marketing objectives becomes a driver of change for the supplier at both an organisational and a relational level: it can support the buyer in mitigating the reputational risk within the business network and the local community and the risk of social sustainability created by vertical integration choices. In the academic debate, limited attention is paid to the relationship between supply chain risk management and sustainability. The paper aims to fill this gap.

Keywords: supply chain risk; management; risk assessment; strategy development; supplier management; vertical integration; sustainability.

DOI: 10.1504/IJDSRM.2022.125014

International Journal of Decision Sciences, Risk and Management, 2022 Vol.10 No.3/4, pp.227 - 248

Received: 18 Oct 2021
Accepted: 22 Feb 2022
Published online: 22 Aug 2022 *