Exploring Systemic Risks Preparedness: The SCRM Framework combined with a Cost-Benefit Approach for SMEs in a Europe-Asia Dyad : An exploratory study within five European SMEs in a Europe-Asia Dyad

Background: Nowadays, organizations face an increased occurrence and magnitude ofsystemic risks in their supply chain. For SMEs, these risks are even more prominent due toresources and capacity constraints, especially if they are positioned within global trade dyadssuch as the Europe-Asia dyad. As is it reasonable to assume that the near future will see otherexamples of disrupting events within this dyad, this study focuses on SMEs in the Europe-Asiadyad facing systemic risks. Purpose: The purpose of this study is to uncover how European SMEs within Europe-Asiadyads can strategically navigate and optimize their SCRM approach to counter systemic risks,harmonizing the adoption of the SCRM process and a cost-benefit approach to enhance theirrisk preparedness. Methods: This study has a qualitative and deduction approach with an exploratory purpose.Data is gathered though semi structured interviews within five case companies. Findings/Contribution: SMEs who are more dependent on the Europe-Asia dyad usually havemore SCRM practices in place. As a result, SMEs with solid SCRM processes have an increasedlevel of risk preparedness. However, SMEs also aim to stay agile to leverage for their smallsize and limited resources. The empirical findings also show that SMEs with less preparednessoften rely on a fast and agile reactive measure to tackle risks in their Europe-Asia supply chain.This level of preparedness directly influences the level of which SMEs use CBA within SCRM,which the leads to even more preparedness to systemic risks. Furthermore, SMEs with a highlevel of preparedness utilize CBA on a more advanced level than SMEs who showcase lowerpreparedness. It also offers valuable insights for both academics and practitioners on optimizingSMEs' risk management strategies. Keywords: Small and Medium Enterprises (SMEs) – Supply Chain Risk Management (SCRM)– Europe-Asia Dyad – Systemic Risks – Risk Preparedness – Cost-Benefit Analysis (CBA)