ENTERPRISE RISK MANAGEMENT AS A STRATEGIC

GOVERNANCE MECHANISM IN B2B-ENABLED

TRANSNATIONAL SUPPLY CHAINS

ABSTRACT
Governance of complex relationships of highly integrated global supply chains has become a
major strategic challenge for big organizations. Global supply chains has become a high-risk
venture because of high rates of failures of collaborative alliances between supply chain
partners. This study examines the impact of strategic business risk management (ERM)
processes on improving supply chain capacity and reducing risk. Enterprise risk management
has become an important focus of strategic management. Researchers believe that this impulse
stems from the need for governance mechanisms that offset the ineffectiveness of government
intervention and cross-border cooperation. We surveyed 207 organizations to understand their
perceptions of their ERM processes and the absorptive capacity of their partners in the supply
chain. Partner absorptive capacity reduces B2B risk and associated global business risks. The
results show that by managing and controlling the partner's absorptive capacity and B2B risk,
the associated global business risks are reduced. Suitable for the strong performance of the
supply chain.

CORE IDEA
The benefits of highly integrated relationships in the supply chain are primarily derived through
the exchange of information and knowledge. However, this exchange of information and
knowledge is only valuable if the supply chain partners have the ability to absorb and use
knowledge to achieve inter-organizational learning. The supply of investment partners that
integrate strategic information and create knowledge from shared information is called
absorptive capacity and defines absorptive capacity in the organizational environment as the
ability to identify the value of new external information that absorbs it. Organizations for
business use cannot leverage joint knowledge across the supply chain, sharing information with
partners provides limited benefits while transmitting all the risks and vulnerabilities involved
in strategic information exchange. It provides evidence of the relative absorptive capacity and
risk of being willing to pay for partners in the supply chain when the organization determines
the level of commitment and information exchange. Their findings indicate that supply chain
partners need to increase their absorptive capacity and reduce B2B e-commerce risk to
strengthen relationships with potential strategic partners. Previous research has consistently
shown that high risk reduces the willingness of organizations to interact with partners in the
supply chain. Commit to these powerful risks and prevent strong inter-organizational
connections.

RESEARCH METHODOLOGY
To test the theoretical model and the related hypothetical relationships, we collect survey data
from people familiar with the B2B e-commerce operations of the multinational alliances of
your organization. Analyse data using structural equation models. The following sections
discuss the development of the demographic survey tool and the validation of the respondents'
model.

CHANGING BUSINESS PRACTICES WITH REFERENCE TO THE DOMAIN

KNOWLEDGE

The purpose of this study was to explore the effectiveness of strategic business risk
management to create opportunities and minimize threats in the relationships of the
organizational supply chain. It is considered that ERM provides a global governance structure
that promotes controlled multinational supply chain relationships. This study focuses on one
aspect of opportunity capacity (absorption capacity) and threat minimization (B2B e-commerce
business risk). The absorption capacity represents the capacity of the supply chain partners to
take advantage of the information to increase the opportunities offered through collaborative
relationships. The high absorption capacity offers the potential to benefit from the exchange of
information and knowledge. The business risk of B2B e-commerce is more focused on the
threat aspect of risk and involves the integration of technology and technology with the
business processes of the supply chain partners to boost performance. Another important aspect
is to prepare for a future change, a key capacity for a successful response in a dynamic and
competitive supply chain environment.
The results of current research provide strong support for the theorized model, which indicates
that business risk management can improve the absorption capacity and reduce the risk of the
B2B e-commerce business and the global risks related to global business. The results also
support the theory that the absorptive capacity and business risk of B2B e-commerce are key
components of the overall global business risk associated with supply chain partnerships. This
is consistent with the view that business risk management is an effective governance structure
that addresses the complexity of cross-border supply chain relationships.
IMPLICATIONS OF B2B MARKETPLACE TO SUPPLY
CHAIN DEVELOPMENT

CORE IDEA
The paper focuses on the impact of the fast growing B2B marketplace and how does it affect
the entire businesses and its supply chain. This includes the suppliers the buyers the customers
and every other element of the supply chain. This paper also talks about the challenges and the
various success factors related to it.

ABSTRACT
This document describes the latest developments in the rapid growth of the B2B market and its
impact on the overall changing business environment. Recognizing the need to adapt to new
forms of inter-organizational relationships, especially the issue of supply chain development
has been specifically mentioned in the discussion. It then continues to identify and assess the
benefits and challenges of the supply chain development process, with a primary focus on the
responsiveness of emerging B2B markets to supplier relationships and corporate
competitiveness. Exchange of information between levels. Comments on the development of
new supply chain strategies and operational strategies are also considered to be an attempt to
explore alternatives.

METHODOLOGY
The purpose of this document is to try to carefully study the impact of the B2B market on the
development of the current supply chain. In the second part, we analyze the current state of the
B2B market, including neutral and biased digital markets, and then the third part of the business
benefits and challenges survey. In the fourth part, some key success factors were identified for
further debate. In the fifth part, the impact on changes in business strategy and legal problems
is explored. The sixth part draws conclusions and raises some additional questions.

EFFECT ON BUSINESS PRACTICES

The advances in information technology in the last five years have been enormous, and many
transaction and information systems have emerged from organizations to organizations from
the web, so the B2B market has stood out and attracted significant attention from the industry.
Department In the development of the supply chain, organizations can no longer stagnate and
ignore these technologies. However, the success and substantial benefits of the B2B market
remain to be seen. Companies should not let the hype and excitement of new phenomena blur
the real needs of their business. The promise of the market is quite attractive, but the real
benefits of supply chain efficiency and effectiveness can only be obtained from the expansion
of the market, which has rich information and openness throughout the supply chain.
Effective strategy towards the adoption B2B marketplace in supply chain formation needs to
be based on a good understanding of the costs and benefits. However, identifying and
measuring these benefits will not be straightforward. The cost of mistiming the introduction of
relevant e‐commerce-based solutions to support the B2B marketplace supply chain
development or any over/under using of these technologies can be very high. Consequently,
developing and implementing appropriate strategy will be important for maintaining
competitiveness.

CHANGING BUSINESS PRACTICES WITH REFERENCE TO THE DOMAIN

KNOWLEDGE
There are at least three main ways of creating value through B2B marketplaces:
(1) B2B marketplaces expand everyone’s market reach. Without B2B marketplaces buyers can
have great difficulty finding suppliers with the right parts and prices and suppliers can equally
encounter difficulties in finding motivated buyers.
(2) B2B marketplaces generate lower prices for buyers. The price improvements for the buyers
result from the ability of buyers to reach more suppliers or the most efficient supplier as well
as from increased price competition and in some cases access to excess inventory stocks. In
effect it improves the market efficiency.
(3) B2B marketplaces cut the cost of buyers’ operations. Most B2B companies now provide
services that cut the cost of B2B procurement processes which traditionally consume much
staff time and effort.