Innovative Suppliers as a Source of Risk for Manufacturing Companies

Abstract

In dynamic supply networks, based on large degree of outsourcing, risk is increasing. In literature many different sources of risk for supply chain management were discussed. Even though there is a rich stream of literature investigating risk in supply chains, there has been little research applied to the precise risk that exists with inbound supply at manufacturing companies. Manufacturers often outsource portions of their operations as a result of “make-or-buy” decisions, having it based on different reasons. In that case research in risk and its management deals with the level of inter-organizational relationships. External suppliers represent diversified levels of innovations concerning their products and/or technologies; they are often classified as “innovative suppliers”. Certain degree of innovation was clearly identified as a source of risk and uncertainty in supply chains. Also the relationships between manufacturers and their suppliers may be based on partnerships or they may demonstrate more opportunistic behavior of engaged parties. The purpose of the research presented in this paper is to analyze the problem of impact of innovative suppliers on technological and behavioral risk in manufacturers’ supply chains.