An analysis of the impact of supply chain risks on market value of supply chain firms under partnerships

Abstract

To sustain competitive advantages, supply chain companies are more inclined to engage in forming partnerships and establishing alliance. While the benefits of partnerships are widely recognized, the risks associated stemming from such intimate relationships is often overlooked in the literature. This study proposes a framework to reflect the impacts of supply chain risks upon companies’ market value, aiming to raise awareness that severe risks exist not only within the company but also in its cooperative partners. Through event study, the effect of partnerships is investigated in three dimensions. It generates significant implications that can benefit industrial practitioners in decision making.