Supply chain information sharing: challenges and risk mitigation strategies

The purpose of this paper is to investigate how managers perceive risks associated with sharing information with trading partners, and how they attempt to mitigate them.

In this exploratory New Zealand study, qualitative research was conducted involving semi-structured interviews with boundary spanning managers who are responsible for inter-organizational interfaces. Multiple case studies in different industries are used to highlight managers’ perceptions of risks in data exchange process throughout the supply network, and their underlying reasoning.

Managers perceive several types of risks when exchanging information across external supply chain interfaces, and adopt different approaches to handling them. The research also reinforces the vital role played by interpersonal relationships and trust as key enablers of inter-organizational cooperation.

The findings are based on a small sample of 11 case companies based in a single New Zealand province, thereby potentially restricting generalizability. Future work could usefully extend the sample size in order to investigate the correlations between firm sizes, levels of trust, and degrees of data integration within particular industry sectors.

The findings will help managers understand and evaluate different types of risks in the data exchange process, and enable them to make better decisions that enhance information sharing and supply chain performance.

Perceived information sharing risks are peculiar to the individual actors, and as such need to be mitigated through changes to their socially constructed perceptions. This work extends the literature on understanding the various dimensions of inter-organizational information sharing.