Is supply chain risk mitigation affected by organisational design? The roles of organic structures and cultures

Abstract

The objective of this paper is to investigate the potential of organisational design as a potent approach to supply chain risk management (SCRM). Using contingency theory, the current research distinguishes between two design options: organic and mechanistic organisations, both at the structural and cultural levels. The authors predict a positive relationship between the organic nature of structural and cultural elements and the level of supply chain risk mitigation. They also predict a positive interaction effect between structural and cultural elements. To test hypotheses, multiple and moderated regression analysis was conducted on a sample of 213 small and medium-sized enterprises in the Spanish agri-food supply chain. The results confirmed the proposed hypotheses. This research contributes to the literature on SCRM by opening a discussion on the impact of organisational design as means of managing supply chain risk. In particular, it draws attention to the positive combined effects of the different design characteristics (structural and cultural). Furthermore, this study provides managers with insights into the use of organisational design as an additional tool for managing supply chain risk.