Supply Chain Managers and Risk Behavior: Testing the Sitkin and Pablo Model

The frequency of supply chain disruptions is increasing and the resulting costs amplify with the growth of supply chain density and complexity. Supply chain managers serve a pivotal role in ensuring continued firm competitiveness and success. Having the right person whose risk preferences, propensity to take risks, and history dealing with risks match the needs of the company is important. A foundational study performed by Sitkin and Pablo (1992) proposed a conceptual model focused on specific predictors of risk behavior from the individual, organizational, and problem-related perspectives. Questions still remain to the validity of the model given that it has not been fully tested. With the gaps in the current literature, the purpose of this study is to examine (1) does the Sitkin and Pablo (1992) model serve as a valid fit to measure supply chain manager’s propensity and perception of risk and (2) how does the managerial disruption perspective affects the risk perceptions/risk behavior relationship? The findings of the study will contribute to theoretical development through the expansion of the managerial disruption perspective on risk perceptions and through addressing the mediating relationship of risk propensity and risk perception on risk behaviors. Empirical testing is performed using a sample of supply chain managers with statistical analysis of the study results