IDEAS home Printed from https://ideas.repec.org/a/eme/jamrpp/jamr-06-2021-0193.html
   My bibliography  Save this article

Supply chain sustainability risk decision support model using integrated Preference Selection Index (PSI) method and prospect theory

Author

Listed:
  • Agung Sutrisno
  • Vikas Kumar

Abstract

Purpose - The purpose of this paper is to introduce the integrated model of the Preference Selection Index (PSI) and the prospect theory as new means to appraise the impact of supply chain sustainability risks based on five pillars of sustainability. Research has shown that sustainability risk assessment has a strong positive impact on improving the performance of enterprises. Design/methodology/approach - This study adopts a new decision support model for assessing supply chain sustainability risk based on additional failure mode and effect analysis parameters and its integration with PSI methodology and prospect theory. A case example of the supply chain small and medium enterprise (SME) producing fashion have been used in this study. Findings - The result of this study reveals some critical supply chain sustainability risks affecting the sustainability of enterprises under study. Research limitations/implications - The use of a limited sample is often associated as a limitation in the research studies and this study is based on findings from SMEs in the fashion retail supply chain. This preliminary study provides academics and practitioners an exemplar of supply chain sustainability risk assessment using integration of the PSI method and prospect theory. Practical implications - The result of this study is beneficial for practitioners, particularly owner–managers of SMEs who can use this study as guidance on how to consider risk behavior to identify and select the critical sustainability risks and plan mitigating strategies accordingly. Originality/value - Scientific studies on using the PSI and its integration with prospect theory as means to assess the criticality of supply chain sustainability risks is very rare. To the best of the authors’ knowledge, this is the first paper that presents the integrated model of the PSI and prospect theory to rank supply chain sustainability risks based on five pillars of sustainability.

Suggested Citation

  • Agung Sutrisno & Vikas Kumar, 2022. "Supply chain sustainability risk decision support model using integrated Preference Selection Index (PSI) method and prospect theory," Journal of Advances in Management Research, Emerald Group Publishing Limited, vol. 19(2), pages 316-346, February.
    • Handle: RePEc:eme:jamrpp:jamr-06-2021-0193
    DOI: 10.1108/JAMR-06-2021-0193
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/JAMR-06-2021-0193/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/JAMR-06-2021-0193/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/JAMR-06-2021-0193?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:jamrpp:jamr-06-2021-0193. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.