The Study of Influence of National Culture and Political Institution to Supply Chain Risk

Y. H. Cheng and T. T. T. Nguyen 

Department of Supply Chain Management, National Kaohsiung University of Science and Technology


ABSTRACT

After experiencing many events that have a great impact on the supply chain that related to national culture and political institution, the linking of these two concepts with supply chain risk have received much attention from businesses and academia. Understanding their mutual influences can help businesses avoid potential risks when entering a new market, thus brings forth competitive advantages to the business. This research use content analysis, thematic analysis and inductive reasoning to investigate the relationship between national culture, political institution to supply chain risk. The results reveal that from political institution aspect, in some cases both democracy country and autocracy country are facing the same risk in the supply chain while some risk only happen in one side. National culture aspect also gives similar results. This paper result suggests that companies when entering new markets should considers country political institutions and national culture for an efficient supply chain.

Keywords: National Culture; Political Institution, Supply Chain Risk