Information and risk in supply chain relationships: Perspectives from accounting and finance

Supply-chain relationships have become an increasingly important research topic in accounting and finance, driven by recent disruptions including pandemics and geopolitical instability. We document this growing prominence through the marked rise in academic publications. Despite increased attention, significant gaps remain in understanding the mechanisms through which informational frictions can be mitigated and how firms strategically respond to supply-chain risks. To address these gaps, we propose an organising framework centred on two interconnected problems. The first concerns information asymmetry between trading partners and the mechanisms that can reduce it. The second addresses risk transmission along supply-chains and the strategic responses firms adopt to manage such exposures. We show that these problems also underpin emerging research on sustainability in supply-chain contexts and identify promising directions for future research.