A dynamic risk sensing capability: a qualitative study in the context of sustainable supply chain management

Supply chain risk management has considerably evolved over the years, however, it cannot yet effectively cope with the so called dynamic supply chain risks, that would be described from the literature as ambiguous and complex, and can significantly harm the firm in terms of reputation and economically. Similarly, dynamic capabilities theory cannot yet address this research gap because knowledge of threat sensing is scarce. Thus, this PhD dissertation aims to resolve this research gap, using sustainability as a research context, wherein ambiguity and complexity is eminent. It uses 10 case studies of sustainability exemplars operating in multiple industries, namely, chemical, apparel, electronics, and paper. By building on earlier research and abductive reasoning, the analysis suggests the conceptualization of a new construct, namely dynamic risk sensing capability which can lead to positive outcomes. It comprises of three routines, namely scanning, interpreting, and incorporating. In the context of this study, it is shaped mostly as best practices, ascribing to the school of thought having a similar conception (Eisenhardt and Martin 2000). Furthermore, dynamic risk sensing capability can enable change on ordinary capabilities (sourcing, supplier management), enhance sustainability performance, and contribute to the prevention of reputational risks emanating from environmental supply chain issues. In this way, this PhD dissertation offers a granular and testable framework that suggests a way to cope with dynamic supply chain risks, and explains transformation change on the supply chain. This research has theoretical and practical implications to the streams of SCRM and dynamic capabilities theory.