A Novel Taxonomy for Risks in Agribusiness Supply Chains: A Systematic Literature Review
Abstract
:1. Introduction
- What constructs can be used to define risks in ASCs?
- What kind of risks can be categorised within ASCs?
- How do they affect supply chain performance?
- The constructs used to define ASC risks are explored.
- A novel taxonomy is developed to enrich future research directions for ASC risks.
2. Materials and Methods
2.1. Phase 1: Identification
2.2. Phase 2: Eligibility
2.3. Phase 3: Screening
2.4. Phase 4: Included
3. Results
3.1. Descriptive Analysis
3.2. Thematic Analysis
3.2.1. Defining Agribusiness Supply Chain Risk
Supply Chain
Supply Chain Risk
Agribusiness Supply Chain Risk
Agribusiness Risk
Author (s) | Agribusiness Risks | |
---|---|---|
Eremenko et al. (2020) [76] | Types of risks affecting agricultural enterprises | (1) Natural risks, (2) Environmental risks, (3) Field loss risks, (4) Inflationary and deflationary risks, (5) Transportation loss risks, (6) Risks of losses during storage of agricultural products, (7) Bankruptcy risks, (8) Selective risks, and (8) Risks of political instability. |
Chandrasekaran and Raghuram (2014) [47]; OECD (2009) [75] | Risks in agriculture | (1) Market/price, (2) Production, (3) Financial, and (4) Legal/Institution. |
Harwood et al. (1999) [77] | Sources of risk in farming | (1) Production or yield, (2) Price or Market, (3) Institutional, (4) Human or personal, and (5) Financial risks. |
Just and Pope (2002) [78] | Major sources of farm risk | (1) Production, (2) Marketing, (3) Financial, (4) Legal and environmental, and (5) Human resources risks. |
Hardaker et al. (2015) [79] | Types and sources of agriculture risk | (1) Production, (2) Price or market, (3) Institutional, (4) Political, (5) Sovereign, (6) Contractual, (7) Human or personal, and (8) Business risks. |
3.2.2. Categorising Risks in the Agribusiness Supply Chain (ASC)
Sustainability in the Agribusiness Supply Chain
3.2.3. Understanding How Risks Affect Agribusiness Supply Chain Performance
4. Discussion
4.1. Risk Categories and Risk Factors Exposure in the Agribusiness Supply Chain
4.1.1. Internal Risks
4.1.2. External Risks
- Man-made risks include policy/regulation and events-related disasters. Policy/regulation risks include changes in local policy/regulation; changes in regional/national policy/regulation; periodic changes in interest/exchange rate policies; uncertain land policies/tenure; political issues [47,84,110]; customary land ownership; program schemes of companies that affect local communities; high investment climate, particularly for plantation crops; conversion of forest into plantation crops; stealing of plantation land; and claims for land compensation by customary rights owners. Meanwhile, events-related disasters consist of work accidents and theft [36,47,110,115], for instance, work accidents that pose a risk to company performance and theft of products on the farms that have a significant impact on the profits obtained.
4.1.3. Network Risks
4.2. Future Research Directions
4.2.1. Risks and Sustainability in the Agribusiness Supply Chain
4.2.2. Resilience in the Agribusiness Supply Chain
5. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
References
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No | Keywords | |
---|---|---|
I | Agribusiness supply chain risk | AND “definition” AND “classification” OR “categorization” |
II | Agribusiness supply chain | AND “definition” |
III | Agribusiness | AND “definition” AND “supply chain” AND supply chain risk” AND “risk” OR “disruption” OR “vulnerability” |
IV | Supply chain | AND “definition” |
V | Supply chain risk | AND “definition” AND “categorisation” OR “classification” |
Inclusion Criteria | Rationale | Exclusion Criteria |
---|---|---|
Published in peer-reviewed journals, books and conference papers. | Peer-reviewed journals are of higher quality and reliability than non-peer-reviewed articles. Besides, books and conference papers are also relevant and reliable for addressing the research questions. | Any papers in non-peer-reviewed journals, books and conference papers will be eliminated. |
Selection of papers published 2000–2021 | The year 2000 was selected as a starting point because supply chain risk management (SCRM) has been an essential research topic in the past two decades [32]; it has transitioned from an emerging topic to a growing and broad research area [7,32,33,34], and risk in agribusiness supply chain is one of the research areas that is related to SCRM. | Up to the end of January 2021. |
Published in the English language. | English is the dominant language in the field of agribusiness supply chain risk research. | Any publication before 2000 will be excluded. |
Author (s) | Types and Categories of Supply Chain Risks | |
---|---|---|
Shahbaz, Rm Rasi and Bin Ahmad (2019) [49] | Seven categories of SCR | (1) Supply-side risks, (2) Process-side risks, (3) Demand-side risks, (4) Logistic-side risks, (5) Collaboration-side risks, (6) Financial-side risks, and (7) Environment-side risks. |
Waqas et al. (2019) [57] | Five SCR sources | (1) Supply risk, (2) Process risk, (3) Demand risk, (4) Environmental risk, and (5) Financial risks. |
Christopher (2011) [48]; Prakash, Soni and Rathore (2017) [34]; Bogataj and Bogataj (2007) [58]; Jüttner (2005) [59] | Five categories of SCR sources | (1) Supply risk, (2) Demand risk, (3) Process risk, (4) Control risk, and (5) Environmental risk. |
Basole et al. (2016) [60]; Ellis, Shockley and Henry (2011) [61]; Lockamy and McCormack (2010) [62] | Three major categories of SCR | (1) Internal to organisation also called organisational factors, (2) External to organisation but internal to network also known as industry factors, and (3) External risk sources also called environmental factors. |
Ho et al. (2015) [19] | Two categories of SCR | (1) Macro risks (consist of natural risks, e.g., earthquakes and weather-related disasters and man-made risks, e.g., war and terrorism and political instability); (2) Micro risks (demand risk, manufacturing risk, supply risk and infrastructural risk). |
Sodhi, Son and Tang (2012) [52] | Two categories of SCR | (1) Operational risks (frequent risk events stemming from inherent supply-demand uncertainty), (2) Catastrophic risks (caused by natural or man-made disasters). |
Tang, O and Nurmaya Musa (2011) [51] | Three classification of SCR | (1) Material flow risk (single sourcing risk, sourcing flexibility risk, supplier selection/outsourcing, supply product monitoring/quality and supply capacity), (2) Information flow risk (information accuracy, information system security and disruption), and (3) Financial flow risk (exchange rate risk, price and cost risk, financial strength of supply chain partners and financial handling/practice). |
Tang and Tomlin (2008) [63] | Six major types of SCR | (1) Supply risks (supply cost risks, supply commitment risk), (2) Process risks, (3) Demand risks, (4) Intellectual property risks, (5) Behavioral risks, and (6) Political/social risks. |
Wagner and Bode (2008) [64]; Wagner and Bode (2006) [65] | Five sources of SCR | (1) Demand-side; (2) Supply-side; (3) Regulatory, legal and bureaucratic; (4) Infrastructure; and (5) Catastrophic. |
Kleindorfer and Saad (2005) [66] | Two broad categories of risk affecting SC design and management | (1) Risks arising from the problems of coordinating supply and demand; (2) Risks arising from disruptions to normal activities such as natural disasters, from strikes and economic disruptions, and from acts of purposeful agents, including terrorists. |
Chopra and Sodhi (2004) [67] | Nine potential SCR | (1) Disruptions, (2) Delays, (3) System, (4) Forecast, (5) Intellectual property, (6) Procurement, (7) Receivables, (8) Inventory, and (9) Capacity. |
Jüttner, Peck and Christopher (2003) [56]; Lin and Zhou (2011) [68]; Enyinda and Mbah (2017) [69]; Ghadge, Dani and Kalawsky (2012) [33] | Three categories of risk sources in supply chains | (1) Environmental risk sources (man-made and natural disruptions), (2) Network-related risk sources, and (3) Organisational risk sources (inventory risk, process/operational risk, quality risk and management risk). |
Author (s) | Risks in Agribusiness Supply Chain | |
---|---|---|
Behzadi, Golnar et al. (2018a) [7]; Nyamah et al. (2017) [14] | Risk sources in agrifood SC | (1) Weather, (2) Biological/environment (e.g., excess rainfall; pests; and diseases), (3) Logistical/infrastructure, (4) Market including demand and supply (e.g., labour shortage and volatile customer demand), (5) Policy/regulation (e.g., periodic change in interest/exchange rate policies, uncertain land policies/tenure, and political-related issues), (6) Financial, and (7) Operational/managerial factors. |
Behzadi, Golnar et al. (2018a) [7]; Behzadi, G. et al. (2018b) [16] | Risk management for agriculture SC | (1) Seasonality, (2) Supply spikes, (3) Long supply lead times, and (4) Perishability. |
Chandrasekaran and Raghuram (2014) [47] | Risk management for ASC | Product characteristics such as seasonality, long lead time and bulkiness, and inherent unpredictability such as due to climatic, economic or social-environmental changes. |
Behzadi, G. et al. (2018b) [16] | Risks in ASC | (1) Supply-side risks, such as weather variability, disease and pests, affect the quantity and timing of supply, (2). Demand-side risks mainly affect market capacity and sales price. |
Behzadi, Golnar et al. (2017) [15] | Sources of uncertainty in ASC | Agribusiness SC involves more sources of uncertainty than typical manufacturing SC because of attributes such as long supply lead times, seasonality and perishability. |
Jaffee, Siegel and Andrews (2008) [82] | Major risks facing food and agribusiness firms | (1) Weather/natural disaster-related risks, (2) Biology and environmental risks, (3) Market (demand and supply) risks, (4) Logistical/infrastructural risks, (5) Managerial and operational risks, (6) Policy and institutional risks, and (7) Political risks. |
Peck, cited in Enyinda and Mbah (2017) [69] | Risks in the food supply chain | (1) Product contamination and recall; (2) loss of access—terrorism; (3) Loss of access (protesters), site, people and supplier; (4) Reduced capacity; (5) Contractual cover; (6) Dual sourcing; and (7) Market force. |
Risk Categories | Risk Factors/Risk Sources Exposure to Agribusiness Supply Chain |
---|---|
1. Internal risks (Organisational risk factors) |
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2. External risks (Environmental risk factors) |
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3. Network risks (Network-related risk factors) |
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Imbiri, S.; Rameezdeen, R.; Chileshe, N.; Statsenko, L. A Novel Taxonomy for Risks in Agribusiness Supply Chains: A Systematic Literature Review. Sustainability 2021, 13, 9217. https://doi.org/10.3390/su13169217
Imbiri S, Rameezdeen R, Chileshe N, Statsenko L. A Novel Taxonomy for Risks in Agribusiness Supply Chains: A Systematic Literature Review. Sustainability. 2021; 13(16):9217. https://doi.org/10.3390/su13169217
Chicago/Turabian StyleImbiri, Soleman, Raufdeen Rameezdeen, Nicholas Chileshe, and Larissa Statsenko. 2021. "A Novel Taxonomy for Risks in Agribusiness Supply Chains: A Systematic Literature Review" Sustainability 13, no. 16: 9217. https://doi.org/10.3390/su13169217
APA StyleImbiri, S., Rameezdeen, R., Chileshe, N., & Statsenko, L. (2021). A Novel Taxonomy for Risks in Agribusiness Supply Chains: A Systematic Literature Review. Sustainability, 13(16), 9217. https://doi.org/10.3390/su13169217