The financial defaults of suppliers in a supplier network are significant risks and causes of uncertainty for buying firms. Hitherto, it has been largely neglected that default probabilities of suppliers in supplier networks are not independent of each other. We aim to overcome this shortcoming...

Common ways to mitigate the detrimental consequences of supplier bankruptcies are to install redundancy and to pursue a multiple-sourcing strategy. This is based on the assumption that the adverse event of one supplier going out of business is largely independent from the default of other...

type="main" xml:id="jscm12036-abs-0001" <p>The early anticipation and proactive management of financially distressed suppliers have become crucial for buying firms to protect themselves against supplier default risk. To this end, firms need to be able to read the early warning signals from...</p>