Supply Chain Risk Factors in the LED Lighting Industry Based on the EM–DEMATEL–ISM Model

With the continuous growth of China’s macroeconomy, support from national industry policies, and ongoing advancements in lighting industry technology, the domestic lighting industry has seen rapid development and has formed a complete industrial chain. With the increasing penetration of China’s lighting industry, the scale of the lighting market continues to grow steadily and significantly. The rise in export demand for downstream terminal lighting and the recovery of the domestic consumer market have further fueled this growth, presenting a challenge in improving risk management due to the numerous participants in the lighting industry supply chain. On this basis, this study employs a literature review to identify influencing factors, refining 5 secondary indicators and 30 tertiary indicators, and constructing a risk influence index system for the lighting industry supply chain. Given the importance and correlation of different influencing factors, an entropy method (EM), decision making trial and evaluation laboratorian (DEMATEL) composite model is developed to overcome the limitations of deriving weight results from a single model. Moreover, by using the interpretive structural modelling (ISM) method, which displays the structural relationship of influencing factors hierarchically, the combined EM – DEMATEL – ISM model provides a more accurate and clearer exploration of the root causes of supply chain risk. Results demonstrate that economic environmental risks, procurement product quality, supplier selection management, boundary security protection, procurement personnel quality, and production safety systems are six key factors affecting risk in the lighting industry. These insights offer new perspectives for practical decision making and application within the supply chain.