Aligning risk and value creation: a process model of supply chain risk management in geopolitical disruptions

Article

Zheng, L., Islam, N., Zhang, J., Behl, A., Wang, X. and Papadopoulos, T. 2025. Aligning risk and value creation: a process model of supply chain risk management in geopolitical disruptions. International Journal of Operations and Production Management. 45 (5), pp. 1178-1210. https://doi.org/10.1108/IJOPM-03-2024-0271
AuthorsZheng, L., Islam, N., Zhang, J., Behl, A., Wang, X. and Papadopoulos, T.
Abstract

Purpose: This study aims to develop a process model that captures the co-evolution of supply chain risk management (SCRM) and value creation. The model is designed to support multinational small and medium-sized enterprises (SMEs) in addressing the challenges of geopolitical disruptions, such as the US–China trade war, by providing a framework for simultaneously strengthening SCRM and enhancing value delivery in the global supply chain.

Design/methodology/approach: This study employed an inductive case study methodology to construct a theoretical process model of SCRM, drawing on data from semi-structured interviews with eight multinational SMEs impacted by the US-China trade war since January 2018. Using grounded theory techniques—including open coding, axial coding, and selective coding—the interview data were systematically analyzed to develop a process model that captures the complexities of managing supply chain risks in a volatile geopolitical context.

Findings: This study presents a process model illustrating the co-evolution of SCRM and value creation within firms in response to geopolitical disruptions. The evolutionary process of SCRM progresses through four stages: decoding disruption dynamics, synergizing the information ecosystem, catalyzing adaptive transformation, and architecting resilient adaptation. Correspondingly, the value creation process evolves alongside SCRM, aligning with each stage. It includes value-contextualized recalibration, value-driven communication, value-centric customization, and value-sustained resilience.

Originality: This study offers a novel contribution by developing a process model that captures the co-evolution of SCRM and value creation. It identifies four critical stages in the SCRM life cycle, each intricately aligned with corresponding phases of value creation. This integrated framework provides a strategic pathway for firms to navigate supply chain risks while simultaneously enhancing value delivery, particularly in the context of geopolitical disruptions such as the US-China trade war. By linking SCRM and value creation, the study equips multinational SMEs with a practical and comprehensive roadmap for building resilience and competitiveness in an increasingly volatile global environment.

JournalInternational Journal of Operations and Production Management
Journal citation45 (5), pp. 1178-1210
ISSN0144-3577
1758-6593
Year2025
PublisherEmerald
Accepted author manuscript
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Anyone
Digital Object Identifier (DOI)https://doi.org/10.1108/IJOPM-03-2024-0271
Publication dates
Online08 May 2025
Publication process dates
Accepted13 Mar 2025
Deposited17 Mar 2025
Copyright holder© 2025 The Authors
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