Biofuel supply chain risk mitigation strategy framework: expert interview based approach

Abstract

Purpose: The purpose of this case study is to develop and framework the biodiesel downstream supply chain characteristics and risk mitigation strategies. Design/methodology/approach: This study employs an expert interview-based approach as a qualitative approach with a multi-perspectives view. Findings: There are varying strategies among perspectives, such as perspectives of organization and business types, stakeholder types, times and methods. These also show that business strategies of collaborative, coordinative, and cooperative arise as alternative strategies for each perspective and each level of stakeholder. Those business strategies may apply in a variety of operational strategies linking them through an energy security framework element, as a company’s competitive priorities. Research limitations/implications: The research scope includes only a certain area of the country’s territory and the target company’s supply chain areas of activity. The research method includes only internal stakeholders and experts as respondents and data sources. The level of analysis was only at a corporate level in the corporate case study context. The research also targets only downstream activities of biodiesel supply chain context. The interview-based approach as a qualitative approach faces some subjectivity challenges among respondents. Practical implications: The research result provides some positive implications for business practice, including how to minimize the impact of supply chain risk on a company’s business activities and performance, how supply chain experts and practitioners used risk mitigation practices, how to formulate strategic plans to minimize the impact of supply chain risk and enhance the effectivity and sustainability of the supply chain activities. Social implications: The implication for business practice was that a company’s leaders implemented supply chain risk mitigation strategies that provide positive impacts on the more valuable relationship among supply chain actors and stakeholders. Originality/value: The first, is an activities area and operational schemes-based of biodiesel supply chain point of view. The second, is a multi-perspectives-based biodiesel supply chain characteristics framework. The third, is an energy security framework-based biodiesel risk mitigation strategies framework.