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Article
Publication date: 22 January 2021

Mahour Mellat Parast and Nachiappan Subramanian

This paper aims to examine the relationship of supply chain disruption risk drivers to supply chain performance and firm performance outcomes.

Abstract

Purpose

This paper aims to examine the relationship of supply chain disruption risk drivers to supply chain performance and firm performance outcomes.

Design/methodology/approach

Four disruption risk drivers for a supply chain are identified, namely, demand disruption risk, supply disruption risk, process disruption risk and environment disruption risk. A cross-sectional survey was developed and data was collected from 315 Chinese firms to determine the relationship of supply chain disruption risks to supply chain performance and firm performance.

Findings

The empirical findings show that supply disruption risks and process disruption risks have a significant impact on supply chain performance. In addition, this paper shows that supply disruptions, demand disruptions and process disruptions are significantly related to firm performance. This paper shows that supply chain disruption risks have different effects on supply chain performance and firm performance. Managers should be aware that disruption risk drivers can have an impact on firm performance that is different from their impact on supply chain performance. An important finding of the study is that the magnitude of the impact of disruption risks on supply chain performance is greater on the upstream side of the supply chain than on the downstream side of the supply chain.

Originality/value

This is one of the early studies to examine the effect of supply chain disruption risk drivers on both firm performance and supply chain performance. An important finding of the study is that the magnitude of the impact of disruption risks on supply chain performance is greater on the upstream side of the supply chain than on the downstream side of the supply chain.

Details

Supply Chain Management: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1359-8546

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Article
Publication date: 22 December 2020

Ernest Kissi, Kofi Agyekum, Labaran Musah, De-Graft Owusu-Manu and Caleb Debrah

Supply chain (SC) disruption, whether demand sided or supply sided, is conversely perceived to affect organisational performance of construction firms. This paper…

Abstract

Purpose

Supply chain (SC) disruption, whether demand sided or supply sided, is conversely perceived to affect organisational performance of construction firms. This paper, therefore, aims to examine the linkage of supply chain disruptions with organisational performance of construction firms through the moderating role of innovation.

Design/methodology/approach

Using a quantitative research, approach the views of 84 construction professionals were elicited using a structured questionnaire. Ordinary least squares were utilised to validate the hypotheses set.

Findings

The study proved that there is a negative relationship between demand-related disruption and business performance as well as project performance. Also, it was clear from the study that supply-related disruptions had a significant impact on both project performance and business performance. Although SC innovation was seen to impact business performance, it had no relationship with project performance. Generally, innovation was seen to have a moderating effect of demand and supply disruption of project performance, but it played no moderating role in business performance.

Practical implications

The findings suggest that business firms must be innovative with the supply chain, as it moderated project success. The supply chain of a construction firm plays a very critical role on projects; hence, this study recommends that a supply chain manager ought to be innovative in their operations due to the moderating role SC innovation has on project performance and largely business performance.

Originality/value

Various studies on supply chain has been done on different sectors in the economy; however, little can be said about the construction industry on how supply chain disruptions affects business and project performance and how innovation moderates such effects.

Details

Journal of Financial Management of Property and Construction , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1366-4387

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Article
Publication date: 4 May 2020

Seyoum Eshetu Birkie and Paolo Trucco

Recent studies have argued that companies may actively implement practices to mitigate disruptions in their supply chain and reduce the extent of damage on performance…

Abstract

Purpose

Recent studies have argued that companies may actively implement practices to mitigate disruptions in their supply chain and reduce the extent of damage on performance. Other studies have shown that disruptions may propagate in supply chains, leading to consequences that are more negative and raising doubts on the effectiveness of mitigation strategies implemented downstream. This study investigates the influence of supply chain complexity on the two phenomena and their interplay, taking a focal company's perspective.

Design/methodology/approach

A systematic procedure for data collection, encoding and aggregation based on incident data mainly from secondary sources was used. Multiple regression models were run to analyse direct and moderation effects involving resilience, distance of impact location from trigger point, and supply chain complexity on weighted performance change.

Findings

Supply chain complexity is found to have positive moderation on the ripple effect of disruption. Resilience capability remains to have dominating direct positive effect in mitigating disruptions when supply chain complexity is taken into account.

Research limitations/implications

This study extends the research discourse on supply chain resilience and disruption management with focus on the supply side. It demonstrates that, along with the severity of the disruption scenario, the ripple effect must also be considered when analyzing the benefits of resilience practices implemented by the focal company.

Practical implications

Complexity in the supply chain can only help to smooth-out the rippling effects of a disruption, which go largely beyond supply-demand unbalances and lead time fluctuations. To mitigate it better, the focal company has to act proactively with adequate resilience practices, which also connects to the importance of better visibility across multiple supply chain tiers.

Originality/value

To the best of the authors' knowledge, this is the first study that empirically tests the benefits of resilience practices and the ripple effect of disruptions under the moderation role of supply chain complexity.

Details

International Journal of Logistics Management, vol. 31 no. 1
Type: Research Article
ISSN: 0957-4093

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Article
Publication date: 1 July 2014

Sameer Kumar, Katie J. Himes and Collin P. Kritzer

The purpose of this paper is to provide the organization with a process for assessing risk associated with their supply chain and a framework from which they can build…

Abstract

Purpose

The purpose of this paper is to provide the organization with a process for assessing risk associated with their supply chain and a framework from which they can build their strategy to manage risk.

Design/methodology/approach

The proposed process is based on a compilation of research and interactions with supply chain managers in various industries, and these sources provide a specific process to identify how critical the risk is, when to act upon it, and how to manage it. An adapted risk mitigation framework organizes strategies according to the likelihood of disruption and consequences. Included is an industry example used to demonstrate the framework.

Findings

The variability and uncertainty associated with supply chain risks make disruption difficult to predict. Furthermore, getting information from suppliers about the amount of risk associated with their operation in an attempt to scope one's own risk can be a challenge. Management must consider the amount of risk the organization is going to accept and how much to invest to mitigate it.

Originality/value

To manage the risk associated with supply chain disruption, an organization must deploy a strategy for assessing it. Once risk areas have been identified, the organization must design strategies which will mitigate the risk. The depth and degree to which risk is mitigated depends upon how risk-averse a company is and what they are willing to invest in this activity.

Details

Journal of Manufacturing Technology Management, vol. 25 no. 6
Type: Research Article
ISSN: 1741-038X

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Article
Publication date: 4 March 2014

Kathryn A. Marley, Peter T. Ward and James A. Hill

Existing supply chain literature provides examples of countermeasures that firms can adopt to mitigate abnormal or catastrophic supply chain disruptions. However, none…

Abstract

Purpose

Existing supply chain literature provides examples of countermeasures that firms can adopt to mitigate abnormal or catastrophic supply chain disruptions. However, none address reducing interactive complexity prior to adopting countermeasures to mitigate everyday or normal supply chain disruptions. Most mitigation strategies focus on adding capabilities or resources to protect an organization. Here, the authors aim to consider an alternative strategy of examining current processes to determine whether processes can be simplified by using the normal accident theory and its constructs of interactive complexity and coupling as a theoretical basis.

Design/methodology/approach

The authors develop a model based on the normal accident theory and use logistic regression to test their propositions in the context of a steel processing plant and its customers.

Findings

The findings show the importance of reducing interactive complexity to mitigate supply chain disruptions. However, high inventory is not considered a significant countermeasure, and high inventory levels may increase the likelihood of causing a disruption downstream. These findings support the lean management approach of operating under low inventory levels while eliminating complexity to make problems more visible, causing fewer disruptions.

Originality/value

While others have examined the impact of mitigation strategies conceptually, no study has captured information from actual supply chain disruptions to assess how interactive complexity and inventory levels affect disruption potential at downstream customers' facilities. Capturing information from supply chain disruptions enables managers to assess the situation as the disruption is occurring. The authors suggest a strategy in which countermeasures that increase slack in the system should be considered only after the system is sufficiently simplified to mitigate disruptions.

Details

Supply Chain Management: An International Journal, vol. 19 no. 2
Type: Research Article
ISSN: 1359-8546

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Article
Publication date: 26 October 2012

Harri Lorentz and Olli‐Pekka Hilmola

This conceptual paper aims to shed light on the nature and determinants of managerial behaviour when affected by supply chain disruptions. It aims to argue that the…

Abstract

Purpose

This conceptual paper aims to shed light on the nature and determinants of managerial behaviour when affected by supply chain disruptions. It aims to argue that the managerial decision‐making process is an important component in determining the eventual long‐term impact of a supply chain disruption.

Design/methodology/approach

The paper introduces a continuous simulation model that is based on a Bayesian robot decision‐maker. Using the system dynamics approach, it illustrates the process of evaluating competing hypotheses of functional vs dysfunctional supply chain design in a disruption scenario. Model validity is assessed by means of a case study based on secondary data.

Findings

The model provides insight into the drivers of decision‐maker confidence dynamics that are used when evaluating the competing hypotheses. Furthermore, it identifies the psychological distortions that make actual managerial inference processes different from the Bayesian robot and incorporate these adjustments into the system dynamics model. Several propositions about the nature and determinants of decision‐maker confidence are stated.

Practical implications

For policy makers, the paper clarifies the important moderating role of confidence in the realisation of wider implications of supply chain disruptions, especially from the perspective of industrial development, and trade and transport facilitation.

Originality/value

The research enhances understanding of the wider implications of supply chain disruptions, contributing to behavioural research in logistics and supply chain management.

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Article
Publication date: 30 August 2013

Joong Y. Son and Ryan K. Orchard

The purpose of this paper is to examine supply‐side disruptions in a supply chain, and to analyse the effectiveness of two inventory‐based policies for mitigating the…

Abstract

Purpose

The purpose of this paper is to examine supply‐side disruptions in a supply chain, and to analyse the effectiveness of two inventory‐based policies for mitigating the impact of supply disruptions: maintaining strategic inventory reserves (the R‐policy), and using larger orders (the Q‐policy).

Design/methodology/approach

The paper assess the effectiveness of two inventory‐based mitigating policies implemented at a reseller when end customer demand is stable but supply can be disrupted. An analytical model is provided, and numerical experiments are conducted to evaluate the effectiveness of the policies for mitigating the impact of disruption under different disruption scenarios.

Findings

Results indicate that the R‐policy performs consistently better than the Q‐policy in terms of product availability measures, as tested under a wide range of frequency and duration of supply disruptions.

Practical implications

Supply chain trends of lean operations and global sourcing have exposed business organizations to a greater risk and have further raised the need to protect businesses against random supply disruptions.

Originality/value

The paper intends to contribute to the narrowing of the gap in the research of supply‐side disruptions. Further, the topic of inventory reserves has been discussed to date in only a very general sense; the paper proposes conditions for practical implementation and provides unique insights into the effectiveness of the use of strategic inventory reserves as a supply disruption mitigation policy.

Details

International Journal of Physical Distribution & Logistics Management, vol. 43 no. 8
Type: Research Article
ISSN: 0960-0035

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Article
Publication date: 23 September 2013

Ismail Golgeci and Serhiy Y. Ponomarov

The purpose of this paper is to investigate the nexus of relationships linking firm innovativeness, innovation magnitude, disruption severity, and supply chain resilience…

Abstract

Purpose

The purpose of this paper is to investigate the nexus of relationships linking firm innovativeness, innovation magnitude, disruption severity, and supply chain resilience. These relationships are examined within a supply chain disruptions context.

Design/methodology/approach

This study employed between subjects scenario-based experimental methodology combined with a survey method. Participants in the study were senior level logistics/supply chain and operations managers in US and European manufacturing companies. The hypotheses were tested via linear regression models.

Findings

Findings suggest that both firm innovativeness and innovation magnitude are positively associated with supply chain resilience. In addition, it was found that disruption severity is positively associated with innovation magnitude.

Research limitations/implications

Based on the findings, the authors expect that firm innovativeness as a dynamic capability should have a positive impact on achieving supply chain resilience. The more severe the disruption faced, the higher the magnitude of innovation adopted by firms. Therefore, firm innovativeness and innovation magnitude work in tandem to positively influence supply chain resilience.

Originality/value

This paper contributes to the supply chain risk management literature by enhancing the understanding of both positive outcomes of firm innovativeness and drivers of supply chain resilience. It responds to the question, “What enables firms to respond effectively to supply chain disruptions?” from an innovation perspective that has been ignored in the previous literature.

Details

Supply Chain Management: An International Journal, vol. 18 no. 6
Type: Research Article
ISSN: 1359-8546

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Article
Publication date: 28 December 2020

Aswin Alora and Mukesh Kumar Barua

Supply chain disruptions can have severe negative consequences on companies. However, studies measuring the financial impacts of supply chain disruptions are largely…

Abstract

Purpose

Supply chain disruptions can have severe negative consequences on companies. However, studies measuring the financial impacts of supply chain disruptions are largely confined to developed nations and large companies. Therefore, this study aims to analyze the impact of supply chain disruption on small companies in the context of an emerging nation. Further, an attempt has been made to classify supply chain disruptions and measure its impact by its type.

Design/methodology/approach

In this research, the event study on 335 supply chain disruption events for a 10 year period starting from 2009 to 2019 has been used.

Findings

The results state that the Indian small and medium companies lost −4.49% of shareholder wealth in disruption. The findings also indicate that the financial and environmental disruptions can have severe effect on shareholder wealth as compared to other category.

Research limitations/implications

The study is confined to a developing country. Considering multiple countries can provide comparative results and therefore a global consensus could be achieved.

Practical implications

The outcomes of the results help managers to plan and prioritize supply chain disruptions, regulatory authorities can plug any possible insider trading practices for small companies in the event of supply chain disruptions. Investors can plan and take prudent investing decisions based on the nature of the disruptions.

Originality/value

To the best of the knowledge, this is the first study measuring the supply chain disruption effects on smaller companies in an emerging nation. The study is also novel in incorporating financial disruptions and measuring source wise impact on shareholder wealth.

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Book part
Publication date: 11 September 2020

Bartosz Sawik

Supply chain is an important aspect for all the companies and can affect many aspects of companies. Especially the disruption in supply chain is causing huge impacts and…

Abstract

Supply chain is an important aspect for all the companies and can affect many aspects of companies. Especially the disruption in supply chain is causing huge impacts and consequences that are difficult to deal with. This chapter presents a review of selected multiple criteria problems used in supply chain optimization. Research analyzed the multiple criteria decision-making methods to tackle the problem of supplier evaluation and selection. It also focuses on the problem of supply chain when a disruption happens and presents strategies to deal with the issue of disruptions in supply chain and how to mitigate the impact of disruptions. Prevention, response, protection, and recovery strategies are explained. Practical part is focused in the risk-averse models to minimize expected worst-case scenario by single sourcing. Computational experiments for practical examples have been solved using CPLEX solver.

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