An Analysis of the Dynamics of Information Risk in Supply Chains of Select SME Clusters

Virtual integration of supply chains is on the agenda of most organizations as there is a growing need to reduce inventories at each echelon to maximize the value for the ultimate customer. In this context, information has emerged as the most important asset to create competitive advantage. Thus availability of correct and timely information to all the partners of supply chain is an imperative achieved through the adoption of the latest IT tools. But along with the advantages of IT enablement, there are also risks which, if not tackled properly, can bring the whole supply chain to a halt. The purpose of this paper is to understand various information risks from a supply chain perspective. Case study method is applied to three small and medium enterprises (SMEs) clusters in India to understand how these information risks could impact the supply chain. Further using Interpretive Structural Modelling (ISM,) a hierarchy of enablers for information risks mitigation is developed. This helps focus on those areas that are most effective for minimizing information risks in a supply chain.