Supplier–supplier coopetition and supply chain disruption: first-tier supplier resilience in the tetradic context

Abstract

Purpose

The present study considers disruption in the buyer–supplier–supplier triad. This triad has a common second-tier supplier as the disruption source, which gives us the tetradic context. The goal is to advance the knowledge on how a first-tier supplier's resilience against lower-tier disruptive events can be developed through horizontally connecting with the other first-tier supplier and how the buyer can benefit from its first-tier suppliers' resilience capability.

Design/methodology/approach

Data from 33 triads was collected and analyzed.

Findings

As predicted, coopetition between two first-tier suppliers increases the first-tier supplier's capability to be resilient to disruptive events emanating from a lower tier source. However, contrary to initial theorization, the first-tier supplier's resilience capability affects the buyer's performance during disruptive events negatively. With increasing buyer–supplier social bonds, this negative relationship can partly be alleviated.

Research limitations/implications

Analyzing resilience within a triad to a disruption in the tetradic context reveals unexpected dynamics. Individual supplier's resilience may have a negative impact on the buyer's resilience in certain disruption events.

Practical implications

The buyer can increase collective suppliers' resilience through establishing horizontal links. To prevent becoming a victim of the supplier's resilience in the event of a second-tier disruption, a buyer needs to become a member of the supplier's relational network.

Originality/value

We propose that resilience can rest with the suppliers. This observation has implications for the buyer when selecting and coordinating suppliers. Further, it considers a context beyond a triad by venturing into the tetradic context. We anticipate more studies in tetrads in future and this study can serve as a bridge.

Citation

Durach, C.F., Wiengarten, F. and Choi, T.Y. (2020), "Supplier–supplier coopetition and supply chain disruption: first-tier supplier resilience in the tetradic context", International Journal of Operations & Production Management, Vol. 40 No. 7/8, pp. 1041-1065. https://doi.org/10.1108/IJOPM-03-2019-0224