Procurement risk perceptions and hedging: a cross‐industry study in Turkey
Haksöz, Çağrı (2009) Procurement risk perceptions and hedging: a cross‐industry study in Turkey. [Working Paper / Technical Report] Sabanci University ID:SU_FMAN_2009/0001
In this paper, we study primary cross-industry survey data collected in an emerging market, namely Turkey, in order to examine and interpret the perceptions of professionals on procurement risk hedging and management. In this process, we employ ordered logit models in order to decipher the likelihood of an operational hedging strategy, i.e., multiple sourcing, and a financial hedging strategy, i.e., using financial derivatives, and their main drivers. We show that the likelihood of hedging via multiple sourcing and financial derivatives are associated with drivers such as supplier and commodity market characteristics, managerial perceptions regarding the historical operational risk events and supply contract parameters. We also show that the impact of these drivers is intimately different on multiple sourcing and financial derivatives.
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