How and why do risk mitigation strategies evolve? And which resources are needed for engaging in such changes? This paper contributes to the understanding of risk management in supply chains by developing theory about the interplay between supply risk mitigation strategies and the purchasing team's relationship dominant logic (RDL), which we define as the purchasing team's orientation toward and shared cognitive map of the management of its supply chain relationships. Specifically, we propose that RDL and supply risk mitigation strategies are fundamentally intertwined. Following a Straussian approach to grounded theory, this study analyzes data generated from the purchasing teams of Western green-tech firms trying to mitigate supply risk for technically indispensable rare earth metals from China. Our findings from this context that is heavily shaped by state-influenced supply chain members show that the firms chose their mitigation strategies in line with their RDL. Human capital, social capital, and financial capital seem to moderate the link between RDL and mitigation strategies. We link our findings with the strategic management literature in deriving theoretical propositions concerning these relationships.
- grounded theory
- rare earth metals
- relationship dominant logic
- risk management
ASJC Scopus subject areas
- Business, Management and Accounting (miscellaneous)
- Management Science and Operations Research