• The search for competitive advantage in the area of supply chains – associated, for example, with seeking reserves through so-called lean practices, Low-Cost Country Sourcing (LCCS), Just in Time, outsourcing, and single-sourcing – actions previously often considered too risky
• Technological changes – risks associated with new technologies include, for example, e-economy risks, dependence on new banking technologies, threats from hackers, or excessive “rigidity” of the supply chain, which hinders changing relationships between links
• Globalization of the economy – global competition leads to exposing organizations to new, additional risks associated with companies expanding beyond their own region or country, and the concentration of economic activity, consisting not only of companies merging into transnational organizations but also of cooperation in extended supply chains and global networks.
The mentioned trends have not remained without influence on business relationships, which have also changed. In the modern economy, we observe a network of overlapping horizontal and vertical relationships. Between two extreme forms – market exchange and vertical integration, a number of forms of enterprise cooperation can be distinguished. Traditionally, the role of the relationship with a supplier was viewed as a market exchange – the recipient was the buyer, the supplier was the seller. Due to the increasing importance of outsourcing and companies joining networks, relationships with suppliers have also become significant. The increasing division of responsibility and the dynamic nature of relationships require evaluating relationships in a special way, as risks associated with cooperation do not depend solely on the goals and tasks of one company. According to Jukka Hallikas and Veli-Matti Virolainen, the type of relationship influences how risk is perceived by various elements of the network (parties to the relationship). It is therefore worth examining the risks concerning different types of relationships and indicating the role of various risk categories in supply networks.
Views on sources of risk
Analysis of the supply chain in terms of sources of risk can be considered from different perspectives. Most generally, sources of risk in a network can be classified as supply chain risk – these concern cooperation between partners in the supply chain, or environmental risk – this risk results from the interaction between the supply chain and the environment. Analyses of supply chains or supply networks from a relational perspective, contained in the latest studies, focus on building and managing relationships. For example, H. Peck distinguishes four levels of analysis of risk sources in a supply network:
Level 1 – value stream, product or process,
Level 2 – assets and infrastructure dependencies,
Level 3 – organizations and inter-organizational links,
Level 4 – environment, surroundings.
Level 3, concerning the network of organizations, is noteworthy. At this level, the supply chain is viewed as a network through which physical goods and information flow. The links are organizations (commercial and public sector) that own and manage assets and infrastructure. The connections (ties) are market relationships and certain dependencies related to the power and position held by the organization. M. Bensaou, who presents a division of relationships into four basic types: market exchange, strategic partnership, “captive” supplier or “captive” buyer, which differ in the specificity of investment in a given relationship (both by the supplier and the recipient), draws attention to the risk associated with these relationships. The author points out, for example, that if both parties have a large stake in the relationship, they become mutually dependent, and although the resulting high level of trust has certain advantages, a risk may be the emergence of relationship inefficiency. Excessive investment in a relationship may not yield the desired profit – although it provides great benefits, it also requires large outlays. One should also pay attention to the hidden costs of engaging in a given relationship and the risk of losing the value of the invested contribution.
Analytical schemes used in logistics very often refer to transaction cost theory. It explains the relationships occurring in supply chains. Various authors refer to different assumptions and elements of transaction cost theory. For example, J. Witkowski in one of his recent works emphasizes the role of assumptions regarding bounded rationality and opportunism. Transaction cost theory is also useful for analyzing the risk associated with decision-making in networks.