Article

Understanding the Concept of Supply Chain Resilience

Authors:
To read the full-text of this research, you can request a copy directly from the authors.

Abstract

Purpose – In the emerging disciplines of risk management and supply chain management, resilience is a relatively undefined concept. The purpose of this paper is to present an integrated perspective on resilience through an extensive review of the literature in a number of disciplines including developmental psychology and ecosystems. In addition, the paper identifies and addresses some of the current theoretical gaps in the existing research. Design/methodology/approach – Supply chain resilience has been defined by a number of disciplines. An integrative literature review is conducted in an attempt to integrate existing perspectives. This review also serves as the basis for the development of a conceptual model. Findings – The key elements of supply chain resilience and the relationships among them, the links between risks and implications for supply chain management, and the methodologies for managing these key issues are poorly understood. Implications for future research advocate testing the proposed model empirically. Practical implications – Supply chain disruptions have adverse effect on both revenue and costs. Resilient supply chains incorporate event readiness, are capable of providing an efficient response, and often are capable of recovering to their original state or even better post the disruptive event. Originality/value – Supply chain resilience has yet to be researched from the logistics perspective. Even in well-developed disciplines the unified theory of resilience is still under development. This research leverages existing knowledge and advances an interdisciplinary understanding of the concept.

No full-text available

Request Full-text Paper PDF

To read the full-text of this research,
you can request a copy directly from the authors.

... Supply chain flexibility is the capacity of all supply chain participants to adapt or respond to environmental unpredictability and fulfil a growing diversity of customer demands without incurring excessive costs, time, organisational disturbances, or performance losses (Manders et al. 2016) Supply Chain Risks (SCR) Supply chain risks are defined as the probability of occurrence of a certain event or result, as well as the consequences of that event or outcome happening, as well as the causal route leading to that event. The events can be originated from an organization, network or the external environment (Trkman and McCormack 2009;Park et al. 2016) Supply Chain Resilience (SCRES) The ability of the SC to adapt to unforeseen events, react to disturbances, and bounce back from them while maintaining desirable levels of connectivity and control over structure and function (Ponomarov and Holcomb 2009;Scholten et al. 2014) changes occurring in the external environment (Zhang et al. 2003;Rogers et al. 2011;Sreedevi and Saranga 2017). In contrast, logistics flexibility represents the organization's ability to handle numerous receipts and delivery requirements with precision, promptness, and efficiency (Barad and Even Sapir 2003). ...
... In essence, SCs experience substantial complexity and dynamism, forcing them to acclimatize to the changes in the internal and external environments to sustain and survive in the global business environment (Jabbarzadeh et al. 2016;Adobor and McMullen 2018). Companies in today's dynamic and tumultuous times need to strengthen their resilience in the face of unexpected and unanticipated interruptions to their operations (Ponomarov and Holcomb 2009;Wieland and Durach 2021). The firms' dynamic capability serves as the vital constituent for building SCRES (Ali et al. 2017;Yu et al. 2019). ...
... Flexible systems inject an organic capacity into the organization's structure, enabli ng it to confront and react to unforeseen environmental and operational crises (Sheffi and Rice 2005;Jüttner and Maklan 2011;Srinivasan and Swink 2018). Thus, businesses must strengthen their manufacturing system resilience by integrating flexibility into their operations to deal with SC interruptions (Kleindorfer and Saad 2005;Ponomarov and Holcomb 2009;Sheffi and Rice 2005). Even if a disruptive event happens, a SC founded on flexibility enables the company to rapidly react to any disruptive event, allowing the company to reorganise and realign its resources and capabilities in the case of a disturbance (Skipper and Hanna 2009;Sreedevi and Saranga 2017). ...
Article
Full-text available
Natural disasters and unexpected disruptive events have forced practitioners and researchers to build resilience capability into their systems to survive and grow in tempestuous and turbulent times. This study empirically examined the effect of multi-dimensional supply chain flexibility (MDSCF) in improving supply chain resilience (SCRES) under a high supply chain (SC) risk environment. The study incorporated a survey technique and utilized valid responses from 191 large-scale manufacturing (LSM) firms of Pakistan. PLS-SEM is employed to analyze the hypothesized relationships. The findings indicated that MDSCF significantly contributes to improving SCRES. Moreover, the study shows strong significant moderating effects of the customer-oriented and external risks and the weak moderating effect of supplier-oriented risks towards augmenting SCRES. The study contributes to the SC (SC) risk management literature by providing empirical support for the need for multi-dimensional SC flexibility measures in bolstering SCRES under the high SC risk environment.
... Increased flexibility, robustness, redundancies, agility, adaptability, and visibility are capabilities by which supply chains can quickly reorganize and continue functionality and increase resilience to hazards and threats (Miao et al. 2013;Pettit et al. 2010: 6). Ponomarov and Holcomb (2009) provide a definition of supply chain resilience as "the adaptive capability of the supply chain to prepare for unexpected events, respond to disruptions, and recover from them by maintaining continuity of operations at the desired level of connectedness and control over structure and function." A similar definition is offered by Ponis and Koronis (2012: 921): "The ability to proactively plan and design the supply chain network for anticipating unexpected disruptive (negative) events, respond adaptively to disruptions while maintaining control over structure and function and transcending to a post-event robust state of operations, if possible, more favorable than the one before the event, thus gaining competitive advantage." ...
... While the definition of relief supply chain resilience varies, certain key elements have been recognized as making the system resilient. As the desired recovery state usually differs from the initial condition, there is general agreement regarding the importance of a resilient approach to be adaptable, flexible, and agile (Christopher and Peck 2004;Ponomarov and Holcomb 2009;Van Wassenhove 2006). Adaptability, flexibility, and agility allow the system to change quickly to disruptions (Christopher and Peck 2004;Ponomarov and Holcomb 2009). ...
... As the desired recovery state usually differs from the initial condition, there is general agreement regarding the importance of a resilient approach to be adaptable, flexible, and agile (Christopher and Peck 2004;Ponomarov and Holcomb 2009;Van Wassenhove 2006). Adaptability, flexibility, and agility allow the system to change quickly to disruptions (Christopher and Peck 2004;Ponomarov and Holcomb 2009). The ability of the system to adapt rapidly and effectively to disturbances is typically made possible through redundancy, which can take the form of back-up providers, flexible supplies, insurance, or strategic reconfiguration (Kamalahmadi et al. 2022;Mackay et al. 2020). ...
Article
Full-text available
Due to global warming and rising sea levels, Honolulu, Hawai’i—a city on a remote island in the Pacific Ocean—is becoming more vulnerable to climate disasters. This article utilizes a mixed-method approach to investigate the challenges of maintaining disaster relief supply chains in the face of the emerging risks to Honolulu. We conduct eighteen in-depth interviews with key emergency management stakeholders to understand current approaches to supply chain risk management. Based on the research, three main challenges influence disaster preparedness in Hawai’i. First, the physical location of the island and the spatial distribution of risk, assets, and capabilities supporting emergency relief present large, unusual constraints not found in other jurisdictions. Second, the challenges of supply chain management, planning, communications and coordination are exacerbated during disruptions and disaster events. Unlike other states, with neighboring, contiguous jurisdictions, there are severe limitations to mutual aid and assistance from outside sources. Third, our research has also identified cultural challenges associated with social, political, and economic development and change. Stronger institutional collaboration both within the state and beyond its boundaries are key to increased supply chain resilience and effective response and recovery from disasters. We conduct social network analysis focusing on measures of density, degree, betweenness, and centrality to better understand the status and gaps in institutional collaboration. The social network analysis reveals that the current levels of collaboration are relatively low with significant gaps between government agencies and the private sector, as well as limited vertical collaborations with respect to supply chain management between federal, state and local partners. There is a need for stronger leadership with deeper engagement across stakeholders. A pathway forward includes: (1) vulnerability analyses focused on private sector supply chain management and public sector transport hubs, networks, and facilities, (2) exercises and training on emergency supply chain management, and (3) longer-term actions to support sustainability, self-sufficiency, local production, and community resilience. Our research is relevant not just to Hawai’i and other island and isolated communities but also to communities threatened by supply chain disruptions.
... In the face of disruptions, upsets, and unexpected events, resilience is the capability that enables the supply chain to absorb such constraints, problems, etc., and bounce back into the normal state of operations and shape soon after that. As per, Ponomarov and Holcomb (2009) there is a need to develop supply chains to carry on operations by recovering after a disruption; such ability is referred to as resilience. More often retailers are having shortages of few of their SKUs and stock-outs due to the upstream uncertainty. ...
... Supply chain resilience is a kind of dynamic capability which gives an organization the ability to deal with situations that causes damages and disruptions to organizations and also the ability to bounce back soon after recovering from the situation and control over various function and structure (Ponomarov and Holcomb 2009). Whereas SC performance is the collective result of different activities and processes which are the part of firms supply chain (Srinivasan, Mukherjee and Gaur 2011). ...
... SC resilience is the ability and capability of an organization supply chain to deal with unexpected events, it also refers to how quickly an organization cope up with damages which were caused by disruptions and bounce back to original or the desired state of operations (Ponomarov and Holcomb 2009;Mandal and Sarathy 2018). ...
Article
The purpose of the study lies in explaining and measuring Supply Chain relationships and their effect on supply chain resilience and supply chain performance in retail/service organizations. The study is also empirically explaining relationships while employing commitment–trust theory. The empirical research uses 144 responses, which were collected through the use of survey methods from retail firms. The questionnaire was adapted from various published sources. Purposive sampling was used as the technique for data collection. Hypotheses were analyzed by using structural equation modeling. The findings indicate that supply chain relationships significantly influence supply chain performance. SC agility was found as the significant enabler for Resilience. Cooperation plays a vital role in enhancing agility, resilience, and SC performance. Resilience shows the insignificant impact on the performance of supply chain and integration share insignificant effect on cooperation. Retail supply chain managers need to create a transparent atmosphere where all the supply chain partners can exchange formal and informal messages and provide opportunities through such platforms that enable them to share risk management-related expertise and strengthen their productive relationships. Organizations should promote relationships for the long-lasting continuity of their operations. The research is unique for its findings and its contribution toward the supply chain resilience as well as risk management domain and also for contributing in the retail sector as it is one of the first empirical studies to evaluate the relational exchanges and risk management from the perspective of retailers in a developing nation. The study also tries to meet meaningful gaps in existent literature.
... However, one shortcoming of traditional RM is its inability to adequately identify and handle low-probability, high-consequence (LPHC) events [47,68]. Supply chain resilience (SCRES) is seen as a concept that can bridge this gap and supplement existing RM programs by enabling a SC to overcome unforeseen disruptions and create a sustainable, competitive advantage [68,69]. ...
... However, complete integration that will tackle the problem of long-term SC disruption is still at a very early stage. SC capabilities (SCC) are a decisive factor in evolving a SC in a certain direction and so can indeed play a vital role in the synthesis of the two research domains [69]. Yet, until now, research has focused on analysing SCCs in SCRES and SSCM separately. ...
... SCCs play a vital role in both research domains as they are considered to be crucial factors for developing a sustainable resilient SC. Ponomarov and Holcomb [69] stated that "capability is considered as the major role of strategic management in adapting, integrating, and reconfiguring resources, organisational skills and functional competencies to respond to the challenges of the external environment". Therefore, SCCs can be viewed as potential counterparts to SCRs and used to manage SC disruptions [68]. ...
Chapter
Over the last couple of years, there has been an increase in reciprocal discussion within the fields of supply chain resilience (SCRES) and sustainability (SSCM). Although some thematic overlap has been noted, SCRES and SSCM are generally still considered to be two separate domains. However current global SC events and legislative initiatives demonstrate why it is important to view SCRES and SSCM in combination to solve the problem of long-term supply chain risks and disruptions. The purpose of this paper is to explore whether SCRES and SSCM can be integrated, which overlapping elements need to be considered and which main congruent capabilities exist. The exploratory study applies a citation network and main path analysis based on a dataset of two previously conducted systematic literature reviews. The literature review revealed great potential for combining the two research domains based on four identified connecting elements-supply chain capabilities, practices, risks and performance. We also identified great potential for the application of two main congruent capabilities-transparency and big data analytics. The four elements identified provide us with a useful basis for creating a theoretical framework for integrating SSCM and SCRES. We also highlight the importance of the congruent capabilities that are required to overcome paradoxical tensions between resilience and sustainability.
... These recent events have demonstrated that our supply chains are not resilient but vulnerable. Supply chain resilience is defined as the capability to prepare for unexpected events, respond to disruptions, and recover from them (Brandon-Jones et al.2014;Haimes, 2009;Ponomarov & Holcomb, 2009,). However, other scholars agree that its definition has yet to reach a unified consensus (Essuman et al., 2020;Manhart et al., 2020;Pettit et al., 2019). ...
... Agility is a well-studied indicator for supply chain resilience (Al Naimi et al., 2021;Christopher & Peck, 2004;Pettit et al., 2010;Ponomarov &Holcomb 2009;Hosseini et al., 2019;Jain et al., 2017;Kamalahmadi & Parast, 2016;Liu et al., 2018;Tukamuhabwa et al., 2017;Singh et al., 2018;). Supply chain agility applies a quickly changing system in response to real-time customer demand (Christopher & Peck, 2004;Yusuf et al., 1999;). ...
... Visibility is another critical enabler of SCR. While there are numerous definitions of supply chain visibility (SCV), the most basic is the ability to see the flow of information sharing between partners (Al Naimi et al., 2021;Dubey et al., 2019;Christopher and Peck, 2004;Gunasekaran et al., 2015;Jain et al., 2017;Kamalahmadi and Parast 2016;Pettit et al., 2010;Ponomarov and Holcomb 2009). Visibility is a capability that provides significant cost reduction when supply chain disruptions happen (Nooraie & Mellat Parast, 2015) by working proactively rather than reactively (Namdar et al., 2018) and through bridging information sharing capabilities and enabling collaboration (Christopher & Lee, 2004;Stone & Rahimifard, 2018;), resulting in enhanced trust and commitment among supply chain partners and improved cooperation to achieve resilience (Dubey et al., 2019). ...
Preprint
Full-text available
This paper presents a systematic review of the literature on supply chain resilience and customer satisfaction. Six research streams in this growing literature are identified: (1) Overview and understanding of SCR, (2) Supply chain disruption and SCR, (3) SCR effect on firm performance through customer satisfaction, (4) Environment and supply chain resilience (5), Strategies for establishing SCR and their effect on customer satisfaction, (6) SCR and customer satisfaction. Based on this review, it is recommended that firms understand the impact of supply chain resilience on their organizations to minimize disruptions by examining the integration of one or several enablers, including but not limited to, flexibility, visibility, agility, information sharing, risk management and re-engineering. Second, because firms are the key players in supply chains, managers need to understand that disruptions and environmental uncertainties are factors that create a domino effect impacting the entire supply chain. Third, firms must reshape how SCR is measured by considering various performance indicators, including customer satisfaction. Finally, measuring customer satisfaction challenges some critical assumptions of existing theories of supply chain performance measurement. Scholars need to further research by considering customer satisfaction and its impact on supply chain resilience.
... SC resilience generally implies that a system can adapt in order to regain a new stable position after perturbations (Colicchia and Strozzi 2012;Hohenstein et al. 2015). Therefore, it is deemed to be highly important for companies to anticipate, adapt and respond to, and recover promptly from unpredictable events (Ponomarov and Holcomb 2009;Wallenburg 2013, 2012). ...
... The companies interviewed adopted a rich and heterogeneous set of strategies to face the disruptions caused by the COVID-19 pandemic, and redundancy and flexibility strategies were confirmed as key elements of most SC resilience approaches (Ponomarov and Holcomb 2009;Wieland and Wallenburg 2012). During the COVID-19 pandemic, companies activated back-up plans (redundancy), adopting strategies based on multiple sourcing or additional inventory (Colicchia et al. 2011;Kleindorfer and Saad 2005;Tang 2006b;Tomlin 2006). ...
... Along with pre-and during-activation strategies, some strategies were planned to be activated in the post-disruption phase. Companies had already started to design them before the pandemic or, in other cases, they were conceived during the pandemic to leverage the lesson learned from the disruptions experienced (Ali et al. 2017;Ponomarov and Holcomb 2009). ...
Article
Full-text available
To anticipate, adapt and respond to, and recover from disruptions, firms need to enhance supply chain (SC) resilience. The spread of the COVID-19 pandemic in 2020 represented a unique opportunity to investigate it empirically. This study focuses on the exploration of the resilience strategies adopted to deepen their temporal characteristics and contribute to developing the current understanding of proactivity and reactivity, something that needs to be further investigated. Multiple-case study research was conducted considering 21 Italian companies in the grocery industry. Results show that with the outbreak of the pandemic, companies adopted a set of 21 strategies that spanned five resilience categories: redundancy, flexibility, agility, collaboration, and innovation. To explain the temporal characteristics of the identified resilience strategies we propose an original taxonomy that elaborates the previous theory by introducing two new dimensions related to the strategies’ timing (“when?” and “how long?”). Each dimension can be complemented with other sub-dimensions that explain the design and activation of resilience strategies, and their utilisation and availability. The proposed taxonomy broadens the narrow view offered by existing research on the temporal dimension of resilience, as multiple layers are needed to disentangle the temporal characteristics of different strategies. It also provides an original viewpoint on interpreting the strategies’ proactivity or reactivity as their boundary is increasingly blurred. Lastly, the study opens up to future investigations of the antecedents of the design and utilisation/activation of resilience strategies, as companies could rethink their managerial decisions based on the continuous evolution of their operating environment.
... This competence enables a supply chain to adapt and quickly respond to events that are random in nature (Ambulkar et al. 2015). Similarly, Ponomarov and Holcomb (2009) defined resilience in a supply chain as a capability related to maintain attentiveness for unexpected events (Zailani et al. 2015). Moreover, supply chain resilience incorporates an ability to respond and recover from disruptions while maintaining efficient operations in an organization. ...
... Thus, the ability of an organization to adapt, response, and recover from internal and external disruptions can increase a firm's competitive advantage and overall performance (Yu et al. 2019). Due to the nature of supply chain resilience as being a capability associated with the sustainability and longevity of the supply chain (Ponomarov and Holcomb 2009), prior studies assumed a positive impact between supply chain resilience and firm performance outcomes (Wong et al. 2020). Therefore, the current research presents one final hypothesis to incorporate a performance aspect into the SOR model and conceptualization of the study framework as follows. ...
Article
Full-text available
Since 2020, supply chain disruptions have emerged as an ever-present challenge. This research provides a glimpse into the organizational structures that develop supply chain resilience and market performance amid continuous supply chain disruptions. Utilizing psychosomatic variables and empirical modeling, a model was constructed through a review of extant literature and tested with PLS-SEM analysis. Uniquely, this research model is framed with the stimulus-organism response model; thus, placing a firm within the context of a tumultuous environment where stimuli elicit responses from an organization that behaves as an organism. Results demonstrate that organizational culture plays a critical role in developing supply chain resilience amid supply chain dynamism. Market performance was also developed but only through supply chain resilience; supply chain disruption orientation alone did not improve market performance. Mediation effects highlight the importance of supply chain disruption orientation, a strategic orientation that cements an organization's ability to develop supply chain resilience.
... Ability to recover from inevitable risk and unpredictable disruptive events more effectively with continuity is the supply chain resilience (Jüttner & Maklan, 2011). All activities in supply chain have an inherent risk that unexpected disruptions can occur due to the global demand, shorter product life cycles and increasing customer requirements which taught the business world how significantly important continuation of supply chain avoiding disruptions which can cause undesirable impact (Ponomarov & Holcomb, 2009). Overall successful continuation of supply chain without failing its key performance indicators during any disruption is the ideology of Supply chain resilience but, entire global supply chain was shaken over the Covid-19 pandemic due to logistics disruptions and other SC challenges, especially when no one was aware about uncertain lockdowns/overnight changes in supply/demand patterns since last global pandemic. ...
... Further this has been developed with the support of secondary data obtained from web sites, company reports, annual reports, and other secondary sources as well other than literature. Supply chain resilience in a turmoil situation is the adaptive capability of the supply chain to prepare for unexpected events, respond to disruptions, and recover from them by maintaining continuity of operations without fail at the desired level of connectedness through control over structure and function (Ponomarov & Holcomb, 2009). In a case review of the senate committee of Commerce, science and transportation in United States of America (USA), Lewis (2021) articulates the difficulties they faced due to COVID pandemic and further stated that for more than two decades, the USA depended on a global supply chain that provided lower cost and greater efficiency through sourcing from China, especially in technology as semiconductors sourcing. ...
Article
Full-text available
Covid-19 pandemic has severely impacted national governments and countries as such the World Health Organization in deciding the best strategies to mitigate the effects of COVID19 disclaiming same as a pandemic. This global pandemic generates multiple challenges and problems where normal lifestyles of world population diversly affected. In this article we identify logistics disruptions and other challenges resulting from the COVID-19 pandemic in world supply chains and discuss how critically important global Health care and Food supply chains to be future resilient. The researcher analyzed and discussed global practices and policies follows within food and health sector articulating multiple case reviews from literature analysis and secondary data sources. This study supports supply chain practitioners to think out of the box by adopting risk mitigation and managing techniques to amalgamate those towards supply chain resilience for future ready practices.
... Nowadays, specific contextual factors such as the turbulent market conditions and the growing consciousness towards sustainable development are pressuring manufacturers and supply chains. Disruptions arising from many sources including natural disasters, pandemics, exhaustion of resources or geopolitical factors happen rapidly and without warning [1]. Supply chains need resilience, i.e., the adaptive capability to prepare for unexpected events, respond to disruptions and recover from them [1]. ...
... Disruptions arising from many sources including natural disasters, pandemics, exhaustion of resources or geopolitical factors happen rapidly and without warning [1]. Supply chains need resilience, i.e., the adaptive capability to prepare for unexpected events, respond to disruptions and recover from them [1]. For example, during the COVID-19 pandemic, the closing of most of the European borders forced supply chains to reconfigure their networks and manage the emergency by reusing locally available manufacturing resources [2]. ...
Article
Full-text available
In the current context characterized by turbulent market conditions and the increasing relevance of sustainability requirements, reconfigurable manufacturing systems (RMSs) offer great potentialities for supply chains and networks. While plenty of contributions have addressed RMSs from a technological and system-specific perspective since the mid-1990s, the research interest for the strategic potentialities of RMSs at the supply chain level is recent and mainly related to building supply chains’ resilience and sustainability. Despite the interest, methods to support supply chains to strategically exploit RMSs are still missing, while being highly needed. In this paper, a method—consisting of an index to assess machines reusability and a mixed integer programming (MIP) algorithm—is provided to support the identification of reusable and reconfigurable machine candidates at the early stage of the strategic network design. The overall method allows machines to be compared based on their reusability and geographical locations. The application of the method, as well as an example referring to the production of emergency devices during the COVID-19 pandemic are reported. The theoretical and practical implications of the study are also discussed, and, among others, strategic parameters related to machines have been identified and elaborated as enablers of supply chain reconfigurability; the proposed method supports practitioners in improving supply chain resilience and sustainability. The method also encourages practitioners towards the development and adoption of reconfigurable machines. Finally, this study also has social impacts for local communities and stimulates customer-centric collaboration among companies belonging to similar industries and sectors.
... Risk identification includes the recognition of events or activities that have the potential to cause a direct or indirect negative influence on supply chain performance (Ho et al., 2015). What needs to be noted in this vein is that the understanding of supply chain performance has widened, and expanded from a mere focus on economic parameters, like benefits and costs, to parameters capturing geopolitical, technological, social, and environmental dynamics (Chaudhuri et al., 2021;Ponomarov & Holcomb, 2009). Risk assessment refers to the analysis of risks based on stakeholder needs and the objectives of the firm. ...
... Even if they cannot be mitigated, these plans may still be valuable in helping firms recover from the risk effects, making them more resilient. Resilience in the context of SCRM can be understood as an ability of a system to quickly bounce back and reach equilibrium again after a temporary disturbance (Ponomarov & Holcomb, 2009). This is also in line with Petit et al. (2010), who developed a conceptual framework for supply chain resilience, based on vulnerabilities and capabilities, highlighting supply chain risk assessment (SCRA) as a critical aspect of SCRM. ...
Article
Full-text available
The year 2020 can be earmarked as the year of global supply chain disruption owing to the outbreak of the coronavirus (COVID-19). It is however not only because of the pandemic that supply chain risk assessment (SCRA) has become more critical today than it has ever been. With the number of supply chain risks having increased significantly over the last decade, particularly during the last 5 years, there has been a flurry of literature on supply chain risk management (SCRM), illustrating the need for further classification so as to guide researchers to the most promising avenues and opportunities. We therefore conduct a bibliometric and network analysis of SCRA publications to identify research areas and underlying themes, leading to the identification of three major research clusters for which we provide interpretation and guidance for future work. In doing so we focus in particular on the variety of parameters, analytical approaches, and characteristics of multi-criteria decision-making techniques for assessing supply chain risks. This offers an invaluable synthesis of the SCRA literature, providing recommendations for future research opportunities. As such, this paper is a formidable starting point for operations researchers delving into this domain, which is expected to increase significantly also due to the current pandemic.
... Supply chain resilience (SCRES) exposes companies' capability to rebound from supply chain disruptions, and return to their original state after disturbances (Christopher and Peck 2004;Sheffi and Rice 2005). "Resilient supply chains incorporate event readiness, are capable of providing an efficient response, and often are capable of recovering to their original state or to even better state of operational performance after the disruptive event" (Ponomarov and Holcomb 2009). Allied with the system view on a supply chain, it is postulated that inherent system capabilities are decisive for building resilience. ...
... Following the resource-based view, supply chains should build capacities to respond to an unexpected event and to possess the power to return to its original state or shift to another even better one. SCRES is described as a capacity that enables proactive and reactive behavior against unanticipated disruptions and as an adaptive capability to recover from them (Ponomarov and Holcomb 2009 Tukamuhabwa et al. (2015) identified the range of most critical capabilities for improving resilience such as increasing flexibility, creating redundancy, forming collaborative supply chain relationships and improving supply chain agility. In a later literature review, Singh et al. (2019) identified and systematized seventeen indicators which could help to make a supply chain more resilient: agility, flexibility, robustness, redundancy, visibility, information sharing, collaboration, sustainability, awareness, risk management culture, velocity, market position, risk control, revenue sharing, adaptability, network design and security. ...
Chapter
The research paper analyses the level of stress and functional state of the drivers in urban traffic congestion. Therefore, the primary objective of this research is to describe patterns to assess fatigue of the driver during urban traffic congestion. The Electrocardiography (ECG) data is used to assess fatigue of the driver. The model comprising of influence of traffic congestion on the functional state of the average driver, allows us to predict changes to the driver’s state depending on the age, the duration of the traffic congestion and initial state prior to congestion. The value of the initial functional state affects the driver’s functional state during his/her stay in a traffic congestion in different ways. The rising of tension during staying in traffic jam is 10–12% after 7–10 min. The research uses system analysis for data analysis; electrophysiological methods in determining the functional state of the driver and mathematical statistics methods were used during the development of model for analysis of the functional state of the driver.
... That said, production changeover brings complexities and uncertainties such as temporary value creation, switching suppliers, regulatory approvals and upskilling of staff. Several research endeavours (e.g., Ponomarov & Holcomb, 2009;Scholten et al., 2019;Yilmaz Borekci et al., 2015) discuss the concept of organizational resilience for organizations to overcome the disruptions related to their operations and SCs. Following this line of inquiry, this study argues that organizational resilience is crucial to enable manufacturing companies to repurpose their operations and SC. ...
... According to Ponomarov and Holcomb (2009), resilience enables companies to recover from adversity such as turmoil and disasters. This is because it allows the system to absorb changes while maintaining the established order (Duchek, 2020). ...
Article
Full-text available
During the coronavirus disease 2019 (COVID‐19) pandemic, the demand and supply for many products fluctuated. Thus, many companies around the globe have repurposed their operations and reconfigured their supply chains (SCs) to switch production and produce new products. Literature provided various models and frameworks to explain the concepts of supply chain resilience. However, it remains unclear how companies could quickly and temporarily repurpose their SCs and what are the required capabilities during the COVID‐19 crisis. Therefore, this study investigates the role of developing dynamic capabilities such as manufacturing, logistics, production capacity and procurement in facilitating production changeover. Based on 36 semistructured interviews conducted with multinational corporations, the study findings demonstrate four specific capabilities known as the 4Rs: retooling, repurposing, recalibrating and reconfiguring. Hence, the study provides a conceptual framework of operational resilience to understand how production changeover could be achieved. In addition, this 4Rs framework helps decision‐makers to improve SC resilience and capabilities when facing a crisis such as COVID‐19.
... Supply chain resilience has gained significant attention in recent years, and several literature reviews have emerged in recent years (Ali, Mahfouz, & Arisha, 2017;Emenike & Falcone, 2020;Gligor, Gligor, Holcomb, & Bozkurt, 2019;Hohenstein, Feisel, Hartmann, & Giunipero, 2015;Hosseini et al., 2019;Kamalahmadi & Mellat-Parast, 2016;Kochan & Nowicki, 2018;Ribeiro & Barbosa-Povoa, 2018;Stone & Rahimifard, 2018;and Ponomarov & Holcomb, 2009). Emenike and Falcone (2020) reviewed studies on supply chain resilience, with a special focus on the natural gas supply chain in the event of disruptions leading to emergency shutdowns. ...
... Proactive resilience measures are adopted to avoid disruption of supply chain networks in the future. Kim, Chen, and Linderman (2015), Pettit, Fiksel, and Croxton (2010), and Closs and Mcgarrell (2004) state that strengthening the capability of supply chain firms to withstand disruptions is a key proactive strategy that makes supply chains more resilient. In the proactive approach, risk factors are considered, and proactive resilience measures are implemented as a preventive measure for disaster-caused disruptions. ...
... Supply chain vulnerability, which was a relatively new and unexplored area of management research at the start of the 21 st century, became a hot topic in the years directly leading up to the COVID-19 pandemic, at which point an explosion of research began (Peck, 2005;Golan et al., 2020). While the terms "risk" and "vulnerable" are defined as "likely to be lost or damaged, " the term "resilience" is concisely defined as the "ability of a system to return to its original (or desired) state after being disturbed (Birkie, 2016;Ponomarov and Holcomb, 2009;Peck, 2005). A more recent and specific definition presented by Yao and Fabbe-Costes (2018, p.260) states that "Resilience is a complex, collective, adaptive capability of organizations in the supply network to maintain a dynamic equilibrium, react to and recover from a disruptive event, and regain performance by absorbing negative impacts, responding to unexpected changes, and capitalizing on the knowledge of success or failure." ...
... In the response phase, supply chain decision makers can employ design features from the readiness phase, such as turning to an alternate supplier in the event that a primary supplier has been disrupted. More generally, this phase consists of the deployment of previously developed logistics processes and competencies to maintain acceptable supply chain operational performance during and immediately following a disruption (Ponomarov and Holcomb, 2009;Wu et al., 2013). The notion of adaptability has also been suggested as a necessary component of response for the maintenance and control of the supply chain structure and function (Ponis and Koronis, 2012;Kamalahmadi and Parast, 2016). ...
Article
Full-text available
In recent years, the area of supply chain resilience has received heightened attention as a plethora of new risks, ranging from climate change to cybersecurity and infectious diseases, have emerged as serious threats to operational performance. The COVID-19 pandemic, in particular, has exposed the fragility of global supply chains in many sectors. Given these concerns, supply chain networks, including those designed based on the principles of lean philosophies, are increasingly being re-examined as firms grapple with the challenge of strengthening the capacity to withstand, absorb, and rebound from unexpected shocks. Addressing the urgency of this imperative, this study presents a novel framework—based on theories and concepts in the systems engineering (SE) and supply chain resilience domains to enhance the resilience implementation capabilities that are lacking in many of today’s firms. By applying a Grounded Theory methodology, this study develops and validates a conceptual model that identifies six core attributes fundamental to developing resilience capabilities in complex supply chains. The study concludes by providing examples of, and insights into, the role of these attributes in building supply chain resilience
... Despite all, there is still a lack of theoretical perspectives in SCRM research, and many researchers recommend for future research to implement other different organizational theories to explain SCRM incidents (e.g. Ponomarov and Holcomb, 2009;Li et al., 2015;Heckmann et al., 2015). Overall, it could be stated that research on SCRM is growing rapidly, yet the theoretical formation in the SCRM is still in its infancy. ...
... Since SCRM is a developing field, integration of knowledge from multiple research disciplines (Tang and Musa, 2011) is needed, and future research should use different theories for explaining SCRM incidents in-depth as recommended by Ponomarov and Holcomb (2009). The SLR demonstrated that researchers have used a few popular theories in the field of SCRM. ...
Article
Purpose The aim of this conceptual study is to analyze the effects of state-of-the-art research streams on supply chain risk management (SCRM) based on organizational theoretical background and direct future research toward the use of other related organizational theories. This paper seeks to provide a framework for understanding various organizational theories that can impact the understanding of SCRM. Design/methodology/approach A systematic literature review on articles published from 1998 to 2020 was conducted manually in the following databases: Emerald, Science Direct, Taylor & Francis Online, and Wiley online library. Among these articles, the paper by Smeltzer and Siferd (1998) is the first article published on the topic. Therefore, that serves as a starting point for the papers' analysis. A total of 109 articles have been selected and reviewed in detail. Findings The results of the study indicate that the articles which utilize theories in SCRM research have been mostly published in the last three years. The quantitative and case studies have been prevalently applied methods in the articles. In total, 34 theories are listed from the investigated articles. The four commonly studied theories among these are the information processing theory, transaction cost theory, contingency theory, and resource-based view. Originality/value This paper is the pioneer in the sense that the paper specifically and directly reviews the SCRM literature in terms of organizational theory usage. For future research, this study offers a diffusion of innovation (DOI) theory that explains the factors which can affect the adoption or diffusion of SCRM practices.
... The robustness of a supply chain network is closely related to the concept of resilience (Ponomarov and Holcomb, 2009;Pettit et al., 2010;Tukamuhabwa et al., 2015;Ivanov, 2017;Hosseini et al., 2019;Dolgui et al., 2020;Chen and Chang, 2021;Ulusan and Ergun, 2021). Resilience is the capacity of an enterprise that enables it "to survive, adapt, and grow in the face of turbulent change" (Fiksel, 2006). ...
Article
Full-text available
Advanced integration of logistics systems has been promoted for competitiveness and sustainability. Interconnection of transport operations increases complexity at a network level, which reduces the predictability of the response of the system to disruptions. However, our understanding of the behavior of such systems is still limited. In particular, the topology of the network, which changes as the systems are integrated, is an important factor that affects the performance of the entire system. Knowledge of such mechanisms would be useful in the design and evaluation of integrated logistics. Here, we developed a simple simulation framework for logistics networks that extracts the essence of the problem. We performed extensive numerical experiments for three scenarios that mimic changes in demand: (i) locally and temporally increased traffic demand, (ii) globally and temporally increased traffic demand, and (iii) permanent change in demand pattern, under various conditions on the type of route-finding algorithm, network structure, and transportation capacity. Adaptive route-finding algorithms were more effective in square lattice and random networks, which contained many bypass routes, than in hub-and-spoke networks. Furthermore, the square lattice and random networks were robust to the change in the demand. We suggest that such preferable properties are only present in networks with redundancy and that the bypass structure is an important criterion for designing network logistics. We also performed a realistic case study that mimics interregional truck transport in Japan and confirmed that our conclusions are applicable to a practical problem.
... Therefore, the three dimensions of SCRE are readiness, response and recovery. Ponomarov and Holcomb (2009) emphasize the importance of the pre-and post-disruption aspects of SCRE. Readiness refers to pre-disruption aspects, response focuses on short-term post-disruption aspects, while recovery concentrates on long-term ones. ...
Article
Purpose The Covid-19 pandemic has created an environment of high uncertainty and caused major disruptions in supply chains. The new normal that has emerged during the pandemic is leading to a need to identify new solutions to improve supply chain crisis management in the future. Practitioners require adapted recommendations for solutions to implement. These recommendations are laid out in this paper. Design/methodology/approach A combination of a systematic literature review (SLR), qualitative semi-structured interviews and a questionnaire survey of supply chain practitioners is applied. The interviews provide insights into supply chain practitioners' views of their approaches and, together with the solutions proposed in the literature, provide future recommendations for action for supply chain managers. Findings During the pandemic, companies experienced disruptions in supply, production and demand, as well as interruptions in transportation and distribution. The majority of the solutions proposed in the literature, coincide with the opinions of practitioners. These include collaborative risk management, real-time monitoring and information sharing, supply network management, scenario planning and “what-if” simulations. Research limitations/implications Although the number of interviews conducted and questionnaires completed is limited, they still serve to supplement the SLR with important practical insights and recommendations. Originality/value This paper presents a review of recent academic literature focusing on the impact of Covid-19 on supply chains and the existing solutions to mitigate that impact and manage future crises. It has been expanded to include industry perspectives and experiences. The findings of this study present recommended practices and strategies for better managing supply chains during a crisis.
... In order to reduce risks, supply chains must be designed to incorporate event readiness, provide an efficient and effective response, and be capable of recovering to their original state or even better post the disruptive event. This is the essence of supply chain resiliency [13]. Craighead, Rungtusanatham and Handfield proposed in 2007 that all supply chains have inherent risks and the risk of interruption cannot be avoided. ...
... SCR is defined as 'the ability to react proactively to disturbances and to return to its original state or a more desirable one' (Ponomarov and Holcomb, 2009). It is the balance between vulnerabilities [key disruptions which disturb the normal construction process and are unanticipated and unplanned (Zavala et al., 2018)] and the associated capabilities that enable an enterprise to anticipate and withstand vulnerabilities (Pettit et al., 2013). ...
Conference Paper
Full-text available
The adoption and implementation of Sustainable Construction has been one of the main challenges facing the construction industry for the last three decades. The issue has attracted global attention with many governments and organizations developing codes and frameworks to encourage and enforce the adoption of Sustainable Construction. However, current evidence suggests that companies and individuals are struggling to commit to Sustainable Construction and implement the suggested policies. This paper explores from the Malaysian residential building developer’s perspective, the barriers and external drivers influencing the adoption of sustainable construction in Malaysia. A comprehensive literature survey is carried out to develop a theoretical link between sustainable construction and identified factors. This was followed by a structured questionnaire survey among 365 Developer company registered with the REHDA (Real Estate and Residential Building Developers ‘Association Malaysia). 103 responses were received, 101 considered valid for analysis. Findings from the study revealed financial support (Incentives/tax rebates/subsidies, high profit margin), legislative and building regulation and availability of rating system. E.g. Green Building Index (GBI) are the key external drivers. Besides, high initial cost and investment, insufficient initiatives & support by government in term of tax rebates/subsidies/incentives and lack of improvement of legislation, building code and byelaws are the crucial barrier to the sustainable construction adoption. The study suggests government support in term of financial incentives, change in legislation and creation of awareness can promote the adoption and at the same time can provide barriers mitigation.
... attributes. Furthermore, the team should receive not only enough space and resources, but also a proper top management support (Ponomarov and Holcomb 2009;Scholten et al. 2014). The use of standard procedures to ensure business continuity is a further requirement for an effective mitigation process, as highlighted by Chen et al. (2019) and Jüttner and Maklan (2011). ...
Article
Full-text available
This paper deals with the mitigation process of the COVID-19 pandemic. Scholars propose and discuss several mitigation strategies to face the COVID-19 disruptions, mainly focusing on technology and supply chain redesign related aspects. Less attention has been paid to the organizational aspects of the mitigation process. We address this gap through an in-depth analysis of the reactive organizational practices implemented by an Italian company during the COVID-19 pandemic. We further compare these practices with those proposed in the disruption management literature to identify common traits and differences. The results show that the overall management of a pandemic’s mitigation process does not significantly differ from that of conventional disruptions, since both contexts require the same basic organizational practices. However, some peculiarities on how these practices should be implemented in a pandemic setting do emerge, such as the implementation of a cyclic rather than linear problem-solving process, the adoption of a learning-by-doing approach, the need of a risk-taker mindset and the importance of creativity and improvisation. Besides complementing the literature, these findings allow to provide indications to managers on how to organize and coordinate the activities during the mitigation process, as well as on what capabilities and competencies should be leveraged to face the pandemic’s disruptions.
... Ponomarov and Holcomb pointed out that SCM decisions can be made based on SCRE, and that investment in resilience has a positive impact on risk management [105]. Jüttner and Maklan pointed out that there is an established relationship between supply chain resilience, vulnerability, and supply chain resilience strategies; they stated that these three concepts are complementary to well-designed supply chains [106]. ...
Article
Full-text available
In the face of global competition, competitive enterprises should pursue sustainable development, and strengthen their supply chain resilience to cope with risks at any time. In addition, big data analysis has been successfully applied in a variety of fields. However, the method has not been applied to improve supply chain resilience in order to reduce sustainable supply chain risks. An approach for enhancing the capabilities of big data analytics must be developed to enhance supply chain resilience, and mitigate sustainable supply chain risks. In this study, a decision framework that integrates two-stage House of Quality and multicriteria decision-making was constructed. By applying this framework, enterprise decision-makers can identify big data analytics that improve supply chain resilience, and resilience indicators that reduce sustainable supply chain risks. A case study of one of China’s largest relay manufacturers is presented to demonstrate the practicability of the framework. The results showed that the key sustainable supply chain risks are risks regarding the IT infrastructure and information system efficiency, customer supply disruptions, transport disruptions, natural disasters, and government instability. To reduce risk in sustainable supply chains, enterprises must improve the key resilience indicators ‘financial capability’, ‘flexibility’, ‘corporate culture’, ‘information sharing’, and ‘robustness’. Moreover, to increase supply chain resilience, the following most important big data analysis enablers should be considered: ‘capital investment’, ‘building big data sharing mechanism and visualisation’, and ‘strengthening big data infrastructures to support platforms and systems’. This decision framework helps companies prioritise big data analysis enablers to mitigate sustainable supply chain risks in manufacturing organisations by strengthening supply chain resilience. The identified priorities will benefit companies that are using big data strategies and pursuing supply chain resilience initiatives. In addition, the results of this study show the direction of creating a fruitful combination of big data technologies and supply chain resilience to effectively mitigate sustainable risks. Despite the limited enterprise resources, management decision-makers can determine where big data analysis enablers can be most cost-effectively improved to promote risk resilience of sustainable supply chains; this ensures the efficient implementation of effective big data strategies.
... It also included readiness and alertness, the ability to respond and to adapt as well as to recover or to adjust. (Ponomarov & Holcomb, 2009). ...
Article
Full-text available
Pandemic has devastated business activities in all aspects, since the announcement of the Social Distancing and outbreak being implemented by government, in various countries including Indonesia. Many businesses closed theirs because they are unable to withstand the challenges of volatility, uncertainty, complexity and ambiguity known as VUCA as a pandemic effect. Only strong businesses facing the threat of VUCA could continue. There for Business Resilience is needed for business sustainability and keep going concern. The study focused on the Small Medium Enterprises (SME) business in Indonesia. We investigated how this business survived in the pandemic era in dealing with VUCA conditions and to find out how social innovation and investment could improve business resilience through digital transformation. The survey method would be carried out to explore more information on how the behavior of SME entrepreneurs could survive through this condition. The research analysis unit was SME entrepreneurs who have participated in the Digital Online Training Program through digital-based SME selection, conducted by the Ministry of Communication and Information Technology in July 2020. The expected outcome was that the social innovation and investment on SME business had a significant relationship with the business resilience and could improve through digital transformation during pandemic era. The implication for further and future research will bring over to business sustainability and business performance through different factors.
... In line with this change, the concept of supply chain resilience focuses on the capacity of a supply chain to persist or transform in the event of a disruption (Wieland, 2021;Adobor, 2020). In this sense, supply chain management research also conceptualises supply chain resilience as a dynamic capability of the firm (Ponomarov and Holcomb, 2009;Yu et al., 2019). Supply chain disruptions destroy the stability of the environment and escalate the dynamism of the firm's environment (Bode et al., 2011). ...
Article
Full-text available
Purpose-COVID-19 once again showed the importance of building resilience in supply chains. Extant research on supply chain resilience management has successfully identified a set of organizational antecedents that contribute to supply chain resilience. However, little is known about the mechanisms by which these antecedents are developed within a firm. Drawing on the dynamic managerial capabilities theory, the current study aims to investigate the critical role that supply chain managers play in developing the organizational antecedents. Specifically, this study shows that supply chain managers' social capital, human capital and cognition are instrumental to the development of three organizational supply chain resilience antecedents: visibility, responsiveness and flexibility, which subsequently enhance the firm's supply chain resilience. Design/methodology/approach-The authors employ survey data collected from 598 manufacturing firms in Australia, and Hayes and Preacher's (2014) parallel multiple mediator model to empirically test the hypotheses. Findings-The findings of the study establish that supply chain managers' social capital, human capital and cognition indeed have implications for developing supply chain resilience. Furthermore, the mediators through which managers' social capital, human capital and cognition improve supply chain resilience are identified in the current study. Originality/value-The study contributes to the extant literature on supply chain resilience, investigating the role that supply chain managers play in developing the resilience of their firm.
... In today's complex and turbulent business environment, companies are exposed to numerous risks that may cause supply chain disruptions, represented by the current COVID-19 pandemic. Therefore, enhancing resilience, a capability that enables the supply chain to prepare for unexpected events, respond to disruptions, and recover from them, has become an urgent issue [7,[31][32][33][34][35]. ...
Article
Full-text available
This study aimed to reveal the actual state of Japanese firms’ logistics outsourcing, and examine their relationship with LSPs. This study addressed the following issues by conducting a case study of six leading manufacturing firms. First, it clarified the characteristics of Japanese-style logistics outsourcing as: the outsourcing of the total activities, the consigning to a single LSP, and the development of advanced information systems. Moreover, it examined the logistics outsourcing performance from a sustainable perspective, and concluded that Japanese-style logistics management enables firms to achieve high performance in all the economic, environmental, and social dimensions. Second, this study confirms that the traditional Japanese business practice of long-term partnerships is still maintained in logistics outsourcing management. Third, this study also explored how long-term partnerships create sustainable competitive advantages. Finally, based on these findings, a theoretical framework illustrating the relationship between Japanese-style logistics outsourcing and firms’ sustainable competitive advantage is presented. Our findings may encourage companies to develop a long-term partnership with their logistics service providers, and to put environmental and social indicators into their KPI system to achieve a sustainable competitive advantage by balancing the economy, environment, and society.
... differently (Ponomarov and Holcomb, 2009). Under this circumstance, disruptions of any stages can 36 propagate to either upstream or downstream. ...
Preprint
Full-text available
In the era of globalization, critical metals industries are organized through the global supply chain. However, the global supply chains have been disrupted since 2020 by the outbreak of Covid-19 and a serious of geopolitical crises. To better address the supply chain challenges of critical metals, a review is needed about the risk sources, propagation of risks, and responses to the supply chain risks. Firstly, this review provides an overview about the research progress in identifying the risk sources and assessing the risks, and then proposes a new supply chain framework for risk analysis of critical metals. This supply chain risk framework categorizes relevant risk factors into upstream risks, middle-stream risks, downstream risks, and general risks. Secondly, this review offers a comprehensive understanding about how the risks propagate horizontally and vertically. Finally, responses such as supply diversification, stockpiling, material substitution, recycling and circular economy strategy, price volatility hedging, and supply chain traceability are reviewed. This review features in the supply chain perspective and overview on the network-based studies. The review results affirm the urgency and need for further studies on the supply chain risks and resilience, which are strongly connected to a smooth clean energy transition.
... Researchers ascertain that businesses that handle supply chain disruptions are better when resilient (Christopher, 2005;Ponomarov & Holcomb, 2009;Sheffi & Rice, 2005). Therefore, the provision of innovation strategies is one of the factors that will allow the company to recover with greater agility. ...
Article
Full-text available
This paper shows how distributors and retailers of the food and beverages supply chain (FBSC) coped with a natural catastrophe through innovative strategies and overcame underlying vulnerabilities and risks. External factors (power energy, telecommunications, road breakdown, FEMA) and the lack of collaboration between the links were obstacles for the chain to reach its optimal flow. Findings from the focus group methodology contend that the use of innovative strategies in a bidirectional form is an essential component of resilience to facilitate the smooth flow of the FBSC.
Article
Purpose To date, the literature has usually assumed that a universal approach to resilience is appropriate in which different resilience capabilities are equally important for all organizations independent of contextual characteristics. In contrast this study investigates if production process characteristics affect resilience capabilities in terms of redundancy, flexibility, agility and collaboration. Design/methodology/approach An in-depth exploratory multiple case study was carried out in eight companies across different industries. Data were gathered through multiple interviews with key informants in each company. Findings The authors find differences in, and trade-offs between, resilience capabilities and practices related to redundancy, agility and collaboration induced by the different configurations of production system characteristics: especially between discrete and process industries. Further, a major influential characteristic is the production strategy employed (make-to-stock or make-to-order) which stresses or limits collaboration and redundancy. Originality/value This is one of the first studies to explore the effects of production system characteristics as a major contingency factor on the resilience capabilities of an organization. As such it provides valuable insights into the development of a more nuanced contingency approach to how organizations can build resilience and employ specific practices that fit their situation.
The COVID-19 pandemic has caused severe consequences such as long-term disruptions and ripple effects on regional and global supply chains. In this paper, firstly, we design simulation models using AnyLogistix to investigate and predict the pandemic’s short-term and long-term disruptions on a medical mask supply chain. Then, the Green Field Analysis experiments are used to locate the backup facilities and optimize their inventory levels. Finally, risk analysis experiments are carried out to verify the resilience of the redesigned mask supply chain. Our major research findings include the following. First, when the pandemic spreads to the downstream of the supply chain, the duration of the downstream facilities disruption plays a critical role in the supply chain operation and performance. Second, adding backup facilities and optimizing their inventory levels are effective in responding to the pandemic. Overall, this paper provides insights for predicting the impacts of the pandemic on the medical mask supply chain. The results of this study can be used to redesign a medical mask supply chain to be more resilient and flexible.
Article
Purpose-This paper seeks to explore how a self-organised social group (SOSG) can facilitate supply chain resilience (SCRES) during an emergency condition. Design/methodology/approach-A netnographic research was conducted on SONJO, an online SOSG emerging in response to problems in personal protective equipment (PPE) and food small businesses' supply chains (SCs) during the state of COVID-19 emergency in Yogyakarta, Indonesia. Qualitative data of 237,010 words were extracted from the group chats among 223 SONJO WhatsApp Group (WAG) members and were analysed using template analysis. Findings-This paper reveals five communicative acts through which the SOSG facilitates SCRES, namely supply chain (SC) knowledge sharing, networking, bridging, mapping, and mindfulness. The enactment of these communicative acts could foster SC collaboration and help rebuild and sustain the SC operations during the critical period of the pandemic. The SOSG also facilitates the SC actors to be heedful of their responsive actions and risky operations. Practical implications-This paper emphasises the need for organisations to build and maintain relationships with social communities and to extend their social capital beyond their existing SC linkages as an alternative way to survive unexpected disruptions. Originality/value-This paper offers a novel perspective to understand SCRES from an external force. It proposes that, in the face of a devastating disruption, SCRES is not a self-induced process and that the SOSG could play a pivotal role in rebuilding the disrupted SCs. It also shows how a humanitarian effort could help rebuild commercial SCs.
Article
Purpose COVID-19 has affected most business activities, including technology-based business. The higher the business vulnerability rating, the greater the impacts. After identifying three dimensions of vulnerability (exposure, business sensitivity and response capacity), this study aims to determine the potential components and indicators of the vulnerability of technology-based businesses. Design/methodology/approach Using the indicator approach, a comprehensive vulnerability model was developed for assessing the vulnerability of the technology-based business against COVID-19. Findings In this study, COVID-19, as a biological threat and an exogenous shock, was considered the exposure dimension. Business characteristics, job characteristics, business owner-manager demographics, product and supplier characteristics were identified as the sensitivity dimension, while resources, human capital, technological capitals, social capitals, institutional capitals, infrastructures, management capacity and supply chain capabilities were defined as the adaptive business capability or response capacity. To determine vulnerability and response capacity against exogenous shocks and a pandemic crisis, the framework can act as a useful checklist for managers and owners of technology-based businesses. Originality/value Research on the COVID-19, especially in the technology-based business, is still at the emergent stage. This study is a pioneering effort to review the literature on business vulnerability and provide a framework to reduce business vulnerability using the indicator-based approach.
Article
Purpose This paper identifies sources of disruptions that impede resilience in the dairy supply chain in an emerging economy context. Design/methodology/approach A case study approach is used. The unit of analysis is the Indian dairy supply chain (IDSC). Data were collected from nine major dairy cooperatives and five major private firms operating across the Indian states. A total of 28 face-to-face semi-structured interviews were conducted with two individuals from each case dairy organisation during January 2016 to December 2017. Findings Disruption sources in the IDSC are both external and internal and impact the quality of products and the distribution network. Compared to developed economies, in an emerging economy context such as India, the number of disruptions is very high. These disruptions negatively impact resilience and affect efficiency, flexibility, responsiveness and product quality. Research limitations/implications The findings stress the importance of integration across upstream and downstream processes in the IDSC. However, contextual factors should also be considered when designing the supply chain configuration. Small supply sources may be conceptualised as distributed sources that can be consolidated on the move using logistics and IT-enabled solutions. Moreover, the underlying processes of the dairy supply chain need to adapt to the external environment, and internal causes of disruptions should be eliminated through process redesign. Practical implications The findings highlight that the efficient operation of the IDSC is challenged by disruptions, the fragmentation of various stages and poor support infrastructure. The findings may be useful in managing supply networks which have linkages in emerging economies. Social implications The upstream stage of the IDSC involves many small- and medium-sized unorganised producers. The overall inefficiency and poor value generation across the entire IDSC constrain the livelihood and interests of these unorganised producers. Therefore, supply chain design needs to be aligned with social context. Originality/value The central contribution of this article is to present sources of disruptions that impact dairy supply chain performance in an emerging economy context. Areas requiring process improvement are also highlighted.
Chapter
Fast-moving consumer goods (FMCG) are driven by threats and nascent challenges that range from logistical issues to disruptions in the environment. The chapter aimed to determine the efficacy of supply chain collaboration on resilience in the industry. Scholars have constantly highlighted the need for supply chain collaboration by building supply chain resilience, necessitated against sporadic, disruptive, and unforeseen events in the business environment. The argument for businesses to desist from working in silos within their supply chain provokes this study. There seems to be a mismatch between the supply chain members in terms of integrating or collaborating efforts and their capabilities to be resilient when faced with disruptions. Organisations need to identify the variables that exist inside and outside of their environment to ensure alignment, collaboration, and integration. Centralisation of stocks, foreign exchange fluctuation, joint business plans, and longstanding collaboration with vendors could help promote supply chain resilience.
Article
Full-text available
As the world has seen the impact of COVID-19, development of resilient supply chain strategies has emerged as top priority. The inconsistent demands, product consumption and the shorter lifecycle of products during the pandemic needs appropriate planning and designing to make the supply chain more resilient. In this study, an analytical model is proposed to assess the resilience of supply chain to overcome the effect of the disruption impacts. The supply chain risks will depend on the nature of the business and therefore, besides literature review on supply chain resilience the inputs from experts were required. The interdependency among the indicators was analysed by employing Interpretive Structural Modelling (ISM) and demonstrated with the help of a framework. The strength of the interdependence is assessed using Bayesian Network approach. BN transformed the qualitative expert inputs to quantitative assessment by utilising the principles of conditional probability. Three cases from Indian manufacturing industries were used to demonstrate and assess the critical supply chain resilience indicators using integrated ISM-BN approach. The cases showed that the proposed approach can assist decision makers in identifying the critical indicators to be focused towards improving the supply chain resilience to overcome the outbreak of Covid-19 pandemic. A comparative analysis of the supply chain risk indicators has also been performed, thereby extending the practical implication of supply chain resilience.
Article
This study aims to investigate the significance of organizational ambidexterity (OA) in creating supply chain resilience (SCRES) during and after the COVID-19 pandemic. The methodological triangulation is applied in this study. A literature review, semi-structured online interviews and insights from open webinars serve as the sources of data. A framework, based on three pillars: validation, positioning and evaluation of business practices, is used for data analysis. The dependencies between OA activities and SCRES strategies are presented. The authors discuss their evolution during and in the post-pandemic period and outline the SCM trends in a strategic perspective. This paper investigates a pathway for closing the gap between OA theory and industry practice to create SCRES during and post-COVID-19 outbreak. This article starts the discussion on creating SCRES through OA. Future quantitative and qualitative research should explore the applicability of OA to enhance SCRES in a dynamic environment. Understanding the critical connection between exploitation and exploration practices and how OA influences SCRES provides valuable insight into the subject to supply chain managers supporting them in pursuing their roles successfully in the times of crisis. This study is focused on two concepts, OA and SCRES, of critical importance for how practitioners manage supply chains in the times of crisis. The resilience of supply chains to crises is crucial for the well-being of societies.
Chapter
This paper introduces the results of the study of the impact of blockchain technology on supply chain resilience. The study has been conducted using empirical research methodology. The qualitative research method of expert interviews has been applied to collect the data, and the text analysis method - for the data evaluation. Following capabilities of resilient supply chains have been studied: supply chain engineering, collaboration, agility, risk management culture and knowledge management. The experts in blockchain technology from the fields of logistics, production and consumer industry have been interviewed. The main finding of this study is the positive impact of blockchain technology on agility and collaboration in the supply chain. The implication for the supply chain management theory and practice is the understanding of blockchain technology contribution to enhance the resilience of supply chain and of the related challenges.
Article
Eco-innovation practices are critical to achieve the supply chain management of the textile and clothing industry. Prior research has not identified which eco-innovations are more important in circular supply chain management. To guide the effective implementation of eco-innovation practices in CSCM, this study initially established an eco-innovation framework for CSCM articulated along five main aspects. Then, fuzzy set theory was integrated with the decision-making trials and evaluation laboratory method to identify the critical eco-innovation practices in CSCM. Empirical results indicate that life-cycle assessment, the establishment of an eco-innovation strategy, knowledge sharing of eco-innovation information, environmental monitoring, and the control of capital efficiency are critical eco-innovation practices for the CSCM of the textile and clothing industry. More in detail, life-cycle assessment is the most important to improve CSCM performance, while the establishment of an eco-innovation strategy has a greater impact on other eco-innovation practices. This study proposed an eco-innovation decision-making framework that may help enhance the effectiveness of CSCM in the textile and clothing industry. The identification of important eco-innovation drivers may help organisations prioritise CSCM techniques when resources are limited.
Article
The main aim of designing a supply chain network (SCN) is to develop chain profitability and customer satisfaction. The appropriate design of this network plays a crucial role in obtaining the goals of the supply chain, in particular, the level of responsiveness and efficiency. This paper reports on designing a resilient and sustainable biomass supply network by an optimization method based on the uncertainty in bio-energy demand and the disruption in the bio-refinery. First, the relation between resilience factors and sustainability indicators is determined by specifying the critical resilience factors and sustainability indicators of the biomass supply chain (BMSC). Then, the practical resilience factors in the BMSC are prioritized through multi-criteria decision method (MCDM). The factors of higher priority are considered in the proposed model. The objective function is of a profit maximization type. A robust approach is proposed for overcoming the uncertainty in bioenergy demand. The results of solving models by General Algebraic Modeling System (GAMS) software, are given for representing the model applicability. The sensitivity analysis is carried out to examine whether the amount of residual capacity has changed the impact of the disruption. The applicability of the proposed approach was investigated through a case study in the “SATBA” Organization of Iran.
Article
Extending the notion that reshoring can have a significant impact on a firm's supply network owing to the associated location decisions, we explore how reshoring influences the resilience and sustainability of a focal firm's supply network. While reshoring is triggered by aspects related to both the home (domestic) and the host (foreign) country, frequently more favourable aspects in the home country lead to the reshoring decision. To investigate these dynamics, we construct two large‐scale networks consisting of 2066 and 1283 firms, respectively, capturing the supply networks of Apple and Jaguar Land Rover. Both networks have been experiencing the reshoring of previously foreign suppliers to domestic locations. Our investigation captures the network dynamics created by this relocation of tier 1 suppliers for the overall supply chain network, that is, also for higher‐tier/sub‐tier suppliers. The results reveal, contrary to our expectations, that indirect (sub‐tier) foreign suppliers positively influence the network's resilience, with this impact, however, being negatively moderated by their degree centrality, that is, the number of ties a node possesses. In addition, existing indirect (sub‐tier) domestic suppliers do not have a significant influence on the resilience of the network. No evidence was found for the impact of reshoring on sustainability. Overall, our study contributes to the reshoring literature by delineating its influence on both the resilience and the sustainability of a focal firm's supply chain network.
Article
COVID-19 has revealed global supply chains’ vulnerability and sparked debate about increasing supply chain resilience (SCRES). Previous SCRES research has primarily focused on near-term responses to large-scale disruptions, neglecting long-term resilience approaches. We address this research gap by presenting empirical evidence from a Delphi study. Based on the resource dependence theory, we developed 10 projections for 2025 on promising supply chain adaptations, which were assessed by 94 international supply chain experts from academia and industry. The results reveal that companies prioritize bridging over buffering approaches as long-term responses for increasing SCRES. Promising measures include increasing risk criteria importance in supplier selection, supply chain collaboration, and supply chain mapping. In contrast, experts ascribe less priority to safety stocks and coopetition. Moreover, we present a stakeholder analysis confirming one of the resource dependence theory’s central propositions for the future of global supply chains: companies differently affected by externalities will choose different countermeasures.
Conference Paper
Full-text available
XYZ adalah tempat wisata selfie yang memadukan konsep wisata alam dan wisata edukasi. Keberlangsungan bisnis XYZ terancam karena tingginya persaingan industry pariwisata di Kota Batu dan adanya kesamaan konsep antara pesaing dengan XYZ. Guna menghadapi persaingan yang ketat, XYZ perlu membuat strategi pemasaran dan bisnis model yang baru agar meningkatkan daya saing, aspek bisnis dan inovasi. Tujuan dari penelitian ini merumuskan bisnis model canvas baru yang telah terimplementasi strategi pemasaran berdasar Sun Tzu The Art of War pada objek wisata XYZ. Hasil dari penelitian ini adalah terpilihnya stratagems Take The Opportunity To Pilfer A Goat yang mana pengembangan dari stratagems diimplementasikan dalam blok-blok Bisnis Model Canvas. Kesimpulan dari penelitian ini adalah rancangan BMC setelah terimplementasi stratagems Sun Tzu Take The Opportunity To Pilfer A Goat mengakibatkan perubahan pada tujuh blok. Ke tujuh blok tersebut terjadi dari Customer segments, Channels, Resource, Activities, Partnership, Value Proposition, dan Cost Structure.
Article
Purpose Under extensive pressure from normal market competition, frequent technological change and extreme exogenous shock, firms are facing severe challenge nowadays. How to withstand discontinuous crises and respond to normal risks through improving resilience (RE) is an important question worth researching. Thus, drawing on the strategic entrepreneurship theory, the purpose of this study is exploring the relationship between entrepreneurial orientation (EO) and RE, and combining digitization to discuss the role of digital business capability (DBC), digital business model innovation (DBMI) and environmental hostility (EH). Design/methodology/approach Based on survey data from 203 Chinese firms, using the methods of linear regression and bootstrap to test our hypothesis. Furthermore, fuzzy-set qualitative comparative analysis (FsQCA) is used to identify previously unknown combinations which lead to strong/weak RE in digital context. Findings First, EO positively influenced DBC and RE. Second, DBMI promoted RE, DBC and DBMI served as sequential mediators that linked EO and RE. Third, EH positively moderated the effects of EO on RE. Further the study revealed that different configuration of DBMI and dimensions of EO and DBC can explain RE. Originality/value The study explains mechanism of RE from perspective of digitization. The conclusion is good for further consolidating strategic entrepreneurship theory, and providing a new frame for firms to build the ability of antifragile.
Article
Purpose This paper aims to examine the impact of environmental scanning (ES) on competitive advantage (CA) through the mediation of organizational resilience dimensions within manufacturing small and medium-sized enterprises (SMEs) in Egypt. Design/methodology/approach This study adopts a cross-sectional design to collect data. This study used a self-administered questionnaire to collect data from a sample of 249 Egyptian SMEs. This study employed the Smart partial least square structural equation modeling technique to test the hypotheses. Findings ES positively affects CA both directly and indirectly through the mediation of organizational resilience dimensions, namely, robustness and agility. However, ES does not affect integrity; therefore, integrity does not mediate the ES–CA relationship. These results indicate that organizational resilience partially mediates the relationship between ES and CA. Research limitations/implications The sample size was small, covering only Egyptian manufacturing SMEs. The results may be different in the service sector and other countries. The study was cross-sectional which could not trace the long-term effects of ES and organizational resilience on CA. Therefore, a longitudinal study should be conducted, based on resource availability. Practical implications Managers in Egyptian SMEs should scan their environments to build organizational resilience and, in turn, enhance their CA. Originality/value To the best of the authors’ knowledge, this research is among the first endeavors to investigate the role of ES in building CA through organizational resilience in the context of Egyptian SMEs.
Article
This research explores supply resilience through an equifinality lens to establish how buying organizations impacted differently by the same extreme event can strategize and all successfully secure supply. We conduct case study research and use secondary data to investigate how three European governments sourced for ventilators during the first wave of COVID-19. The pandemic had an unprecedented impact on the ventilator market. It disrupted already limited supply and triggered a demand surge. We find multiple paths to supply resilience contingent on redundant capacity and local sourcing options at the pandemic's onset. Low redundancy combined with limited local sourcing options is associated with more diverse strategies and flexibility. The most notable strategy is spurring supplier innovation by fostering collaboration among actors in disparate industries. High redundancy combined with multiple local sourcing options is associated with more focused strategies and agility. One (counter-intuitive) strategy is the rationalization of the supply base.
Article
Purpose The COVID-19 pandemic has challenged supply chains (SCs) around the globe unprecedentedly. This study aims to gain insights on the impacts of the pandemic on SCs and their management under consideration of different regional contexts on a global scale. Design/methodology/approach A Delphi study collects the expertise of global SC academics on the SC vulnerabilities and the measures for responding to disruptions, improving resilience, and restoring operations. Data from three polls are systematically analyzed by content, frequency, and cluster analysis. Findings The study identifies and ranks ten major issues related to SC vulnerabilities and management strategies for specific SC processes and geographical regions. Detected differences among the considered geographical regions point towards particular challenges and call for specific measures to integrate regional contingencies into SC management. In a regional comparison, China and Iran as well as Africa clearly stand out, but also Europe/North America, India/Pakistan, and Brazil show geographical particularities. Research limitations/implications The responses are collected against the COVID-19 pandemic, while the findings show differences among the regions thereby arguing for taking regional contingencies into account in managing SCs. Practical implications SC resilience is a core aim, which was emphasized by the COVID-19 pandemic. The findings provide insights and challenges that managers would have to meet in the different regions covered. Originality/value This paper contributes to existing knowledge on SC risks and SC resilience in context to extreme situations. Given that events, such as the COVID-19 pandemic, will become more frequent in the future due to climate change and geopolitical tensions, insights into how to manage SCs under extreme conditions and into regional differences are crucial.
Chapter
System of Systems (SoS)System of Systems paradigm has been extensively applied to a wide variety of fields. In recent years, some works have shown that the supply chain can be conceptualized as a SoS, yet they do not consider market competition among supply chains. We develop a competitive supply chain SoS framework that extends existing approaches to incorporate multi-chain market competition, yielding an illustrative case of an uncommon SoS with competitive constituents. While satisfaction of customer needs in a certain market is a key objective for supply chain managementSupply Chain Management, it is only achieved by the set of competitive supply chains.
Article
Full-text available
As technological advancement is rapidly evolving modern warfare, military supply chains are becoming more dynamic and complex with high vulnerability to unexpected disruptions. To increase their overall resilience against such unexpected disruptions, traditional approaches are no longer sufficient. To date, research on supply chain resilience has mainly focused on reactive responses and recovery strategies (post-disruption). Hence, the research gap addressed in this paper is that of identifying new and proactive strategies to enable pre-emptive resilience in military supply chains (pre-disruption). In this paper, the authors first provide a critical review of the pertinent literature and research conducted over the past 12 years. Following on from there, they identify new research directions for enabling pre-emptive resilience to aid military logistic planners in monitoring supply chains and strategic decision-making to maintain their resilience.
Chapter
The onset of the COVID-19 pandemic has resulted in a crisis that has impacted international business and entrepreneurship globally. Many small-and medium-sized enterprises (SMEs) have been particularly hard hit, yet many are also finding strategies to survive and even thrive in this "new normal". This chapter highlights the survival strategies of SMEs in the small open economy context of Finland where, alike most European countries, international trade has been restricted due to the pandemic. We conduct a qualitative case analysis of five Finnish SMEs across different industry sectors, describing the internal and external changes they have undergone during the crisis, and we also shed light on the strategies and contingency planning they have been employing in order to survive. From the results, it is evident that internationalization remains an opportunity for Finnish SMEs. We conclude the chapter by summarizing our recommendations for SMEs dealing with the current and the next crisis, while also considering the generalizability of those recommendations in environments less stable and
Article
Full-text available
Constructs an analytical framework for a resource-based approach to strategy formulation. There are five stages in this framework: analyze resources, appraise capabilities, analyze competitive advantage, select strategy, and identify resource gaps. The concepts of this framework are illustrated by reference to existing U.S. firms such as IBM, Xerox, Harley-Davidson, and 3M. This framework uses resources and capabilities as the foundation for a firm's long-term strategy because they provide direction for firm strategy and serve as the primary source of firm profit. Resources are defined as the inputs into the production process and include items of capital equipment and skills of individual employees. Capabilities are defined as the capacity for a team of resources to perform some task or activity. When analyzing the competitive advantage of a firm, durability, transparency, transferability, and replicability are considered important factors. To be successful, firms must develop strategies which utilize their unique characteristics. (SRD)
Article
Full-text available
Supply chain risk management has increasingly becoming a more popular research area recently. Various papers, with different focus and approaches, have been published since a few years ago. This paper aims to survey supply chain risk management (SCRM) literature. Paper published in relevant journals from 2000 to 2007 are analysed and classified into five categories: conceptual, descriptive, empirical, exploratory cross-sectional, and exploratory longitudinal. We also looked at the papers in terms of the types of risks, the unit of analysis, the industry sectors, and the risk management process or strategies addressed. The literature review will provide the basis for outlining future research opportunities in this field.
Article
Full-text available
Foundations of a New Discipline.
Article
Full-text available
Many companies leave risk management and business continuity to security professionals, business continuity planners or insurance professionals. However, the authors argue, building a resilient enterprise should be a strategic initiative that changes the way a company operates and increases its competitiveness. Reducing vulnerability means both reducing the likelihood of a disruption and increasing resilience. Resilience, in turn, can be achieved by either creating redundancy or increasing flexibility. Redundancy is the familiar concept of keeping some resources in reserve to be used in case of a disruption. The most common forms of redundancy are safety stock, the deliberate use of multiple suppliers even when the secondary suppliers have higher costs, and deliberately low capacity utilization rates. Although necessary to some degree, redundancy represents pure cost with no return except in the eventuality of disruption. The authors contend that significantly more leverage, not to mention operational advantages, can be achieved by making supply chains flexible. Flexibility requires building in organic capabilities that can sense threats and respond to them quickly. Drawing on ongoing research at the MIT Center for Transportation and Logistics involving detailed studies of dozens of cases of corporate disruption and response, the authors describe how resilient companies build flexibility into each of five essential supply chain elements: the supplier, conversion process, distribution channels, control systems and underlying corporate culture. Case examples of Land Rover, Aisin Seiki Co. (a supplier to Toyota), United Parcel Service, Dell, Baxter International, DHL and Nokia, among others, are offered to illustrate how building flexibility in these supply chain elements not only bolsters the resilience of an organization but also creates a competitive advantage in the marketplace.
Article
Full-text available
Shows how the lean and agile paradigms may be selected according to marketplace requirements. These are distinctly different, since in the first case the market winner is cost, whereas in the second case the market winner is availability. Agile supply chains are required to be market sensitive and hence nimble. This means that the definition of waste is different from that appropriate to lean supply. The proper location of decoupling points for material flow and information flow enable a hybrid supply chain to be engineered. This encourages lean (efficient) supply upstream and agile (effective) supply downstream, thus bringing together the best of both paradigms. The paper concludes by proposing a cyclic migratory model which describes the PC supply chain attributes during its evolution from traditional to its present customised “leagile” operation.
Article
Full-text available
While the literature related to supply-chain disruptions is informative, it has primarily focused on supply-chain disruptions from a general or high-level view of the phenomenon (e.g. supply-chain uncertainty, risk perceptions). Additionally, although most would agree that disruptions are present in all supply chains, there is a limited amount of information on how to deal with them from a practical perspective in both the short term and long term. Because of the importance of and research needs within this area, we launched a major multi-industry, multi-methodology empirical study on supply-chain disruptions. The study is multi-faceted in that it seeks insights into many issues within the broad area of global sourcing and supply-chain disruptions. Throughout our various interactions with industry, we found that several common themes and issues surfaced as being critical to successful disruption analysis and mitigation as well as resilient supply-chain design. Within this paper, we report on these key issues and discuss the needs within the supply-chain research to contribute to them.
Article
Full-text available
This paper presents a model of team learning and tests it in a multimethod field study. It introduces the construct of team psychological safety—a shared belief held by members of a team that the team is safe for interpersonal risk taking—and models the effects of team psychological safety and team efficacy together on learning and performance in organizational work teams. Results of a study of 51 work teams in a manufacturing company, measuring antecedent, process, and outcome variables, show that team psychological safety is associated with learning behavior, but team efficacy is not, when controlling for team psychological safety. As predicted, learning behavior mediates between team psychological safety and team performance. The results support an integrative perspective in which both team structures, such as context support and team leader coaching, and shared beliefs shape team outcomes.
Article
Full-text available
Dynamic demands and constraints imposed by a rapidly changing business environment make it increasingly necessary for companies in the food supply chain to cooperate with each other. The main questions individual (food) companies face are whether, why, how and with whom they should start supply chain management activities. Presents a qualitative research method for analyzing a supply chain network and for identifying effective chain redesign strategies. Presents a generic list of supply chain redesign strategies based on a multi-disciplinary literature review. Proposes that in order to identify the most effective strategies in a specific chain scenario one should focus on the identification and management of the sources of uncertainties in the supply chain’s decision-making processes. The application of the research method in three food supply chains resulted in a valuable tool that can be used in supply chain redesign projects, as it indicates potentially effective redesign strategies when a specific source of uncertainty is encountered in a supply chain.
Article
Full-text available
Natural disasters, labor disputes, terrorism and more mundane risks can seriously disrupt or delay the flow of material, information and cash through an organization's supply chain. The authors assert that how well a company fares against such threats will depend on its level of preparedness, and the type of disruption. Each supply-chain risk - to forecasts, information systems, intellectual property, procurement, inventory and capacity - has its own drivers and effective mitigation strategies. To avoid lost sales, increased costs or both, managers need to tailor proven risk-reduction strategies to their organizations. Managing supply-chain risk is difficult, however. Dell, Toyota, Motorola and other leading manufacturers excel at identifying and neutralizing supply-chain risks through a delicate balancing act: keeping inventory, capacity and related elements at appropriate levels across the entire supply chain in a rapidly changing environment. Organizations can prepare for or avoid delays by "smart sizing" their capacity and inventory. The manager serves as a kind of financial portfolio manager, seeking to achieve the highest achievable profits (reward) for varying levels of supply-chain risk. The authors recommend a powerful what if? team exercise called stress testing to identify potentially weak links in the supply chain. Armed with this shared understanding, companies can then select the best mitigation strategy: holding "reserves," pooling inventory, using redundant suppliers, balancing capacity and inventory, implementing robust backup and recovery systems, adjusting pricing and incentives, bringing or keeping production in-house, and using Continuous Replenishment Programs (CRP), Collaborative Planning, Forecasting and Replenishment (CPFR) and other supply-chain initiatives.
Article
Full-text available
Today's marketplace is characterised by turbulence and uncertainty. Market turbulence has tended to increase for a number of reasons. Demand in almost every industrial sector seems to be more volatile than was the case in the past. Product and technology life-cycles have shortened significantly and competitive product introductions make life-cycle demand difficult to predict. At the same time the vulnerability of supply chains to disturbance or disruption has increased. It is not only the effect of external events such as wars, strikes or terrorist attacks, but also the impact of changes in business strategy. Many companies have experienced a change in their supply chain risk profile as a result of changes in their business models, for example the adoption of “lean” practices, the move to outsourcing and a general tendency to reduce the size of the supplier base. This paper suggests that one key element in any strategy designed to mitigate supply chain risk is improved “end-to-end” visibility. It is argued that supply chain “confidence” will increase in proportion to the quality of supply chain information.
Article
Full-text available
On the morning of September 11th, 2001, the United States and the Western world entered into a new era - one in which large scale terrorist acts are to be expected. The impacts of the new era will challenge supply chain managers to adjust relations with suppliers and customers, contend with transportation difficulties and amend inventory management strategies. This paper looks at the twin corporate challenges of (i) preparing to deal with the aftermath of terrorist attacks and (ii) operating under heightened security. The first challenge involves setting certain operational redundancies. The second means less reliable lead times and less certain demand scenarios. In addition, the paper looks at how companies should organize to meet those challenges efficiently and suggests a new public-private partnership. While the paper is focused on the US, it has worldwide implications.
Article
Full-text available
Suggests that while integration is a term that logistics discusses in an interorganizational context, integration within an interdepartmental integration is not as prevalent. Consequently, a common definition for “integration” is lacking. Literature has provided three characterizations: integration represents interaction or communication activities; integration consists of collaborative activities between departments; and integration is a composite of interdepartmental intraction and interdepartmental collaboration. Adopting the composite view, prescribes that managers and researchers consider integration to be a multidimensional process. Proposes a model is based on this perspective to suggest that different logistics situations will require varying degrees of integration via interaction and collaboration. Managerial implications are discussed for each situation.
Article
Full-text available
Purpose – The purpose of this conceptual paper is to present a discussion of some of the core components of human resilience occurring in the face of natural or human-made disasters. Resilience is often observed, but optimum responding is more than biological survival. Resilience implies the ability to bounce back and even to grow in the face of threats to survival. It is important to incorporate these key psychological principles into disaster planning. Design/methodology/approach – Research from the social sciences suggests three core principles of resilience, the “3 Cs:” control, coherence, and connectedness. Research evidence supporting the importance of the three Cs to resilient responding is presented, followed by some elementary prescriptions for how they might be implemented. Findings – An approach to disaster planning and management can meld these principles into already-existing intervention techniques, creating a more comprehensive and a more integrated response, potentially resulting in improved intervention effectiveness. Originality/value – Provides a psychological perspective on natural and human-created disasters. Governmental and private sector responses to these tragedies have received a great deal of media attention, but there has been little systematic attention paid to the basic nature of human responding in such situations. Although it has been noted that humans are often resilient in such conditions, there has been virtually nothing written about what “resilience” is. This paper communicates the basic principles of resilience and how they would play out in future disaster planning and responding.
Article
Three complete supply networks have been mapped in this study. These supply networks pertain to the center console assembly and come from three different product lines—Honda Accord, Acura CL/TL, and DaimlerChrysler (DCX) Grand Cherokee. Based on these three cases of supply networks, propositions are built concerning how the structure of supply networks operates. Based on the extant literature, we frame structure in three dimensions—formalization, centralization, and complexity. As an underlying methodology, we first conduct the within‐case analysis and then expand the analysis to cross‐case context. The three structural dimensions affect one another progressively, and the cost consideration appears to be the overarching force that shapes the supply‐network structure.
Conference Paper
This paper focuses on dynamic capabilities and, more generally, the resource-based view of the firm. We argue that dynamic capabilities are a set of specific and identifiable processes such as product development, strategic decision making, and alliancing. They are neither vague nor tautological. Although dynamic capabilities are idiosyncratic in their details and path dependent in their emergence, they have significant commonalities across firms (popularly termed 'best practice'). This suggests that they are more homogeneous, fungible, equifinal and substitutable than is usually assumed. In moderately dynamic markets, dynamic capabilities resemble the traditional conception of routines. They are detailed, analytic stable processes with predictable outcomes. In contrast, in high-velocity markets, they are simple, highly experiential and fragile processes with unpredictable outcomes. Finally, well-known learning mechanisms guide the evolution of dynamic capabilities. In moderately dynamic markets, the evolutionary emphasis is on variation. In high-velocity markets, it is on selection. At the level of REV, we conclude that traditional REV misidentifies the locus of long-term competitive advantage in dynamic markers, overemphasizes the strategic logic of leverage, and reaches a boundary condition in high-velocity markets. Copyright (C) 2000 John Wiley & Sons, Ltd.
Article
High Reliability Organizations (HROs) have been treated as exotic outliers in mainstream organizational theory because of their unique potentials for catastrophic consequences and interactively complex technology. We argue that HROs are more central to the mainstream because they provide a unique window into organizational effectiveness under trying conditions. HROs enact a distinctive though not unique set of cognitive processes directed at proxies for failure, tendencies to simplify, sensitivity to operations, capabilities for resilience, and temptations to overstructure the system. Taken together these processes induce a state of collective mindfulness that creates a rich awareness of discriminatory detail and facilitates the discovery and correction of errors capable of escalation into catastrophe. Though distinctive, these processes are not unique since they are a dormant infrastructure for process improvement in all organizations. Analysis of HROs suggests that inertia is not indigenous to organizing, that routines are effective because of their variation, that learning may be a byproduct of mindfulness, and that garbage cans may be safer than hierarchies.
Article
The belief that natural ecosystems become more diverse and, hence, more stable with time after a disturbance is widely accepted and regularly repeated in ecology textbooks (Clements & Shelford, 1939; Colinvaux, 1973; Collier et al., 1973; Odum, 1953). There are suggestions on empirical and theoretical grounds of quantitative relationships between diversity and some measure of stability (Hairston et al., 1968; Hurd et al., 1971; Goel et al., 1971; Leigh, 1965; May, 1972, 1973b; Murdoch et al., 1972; Paine, 1969; Patten, 1963; Pimentel, 1961; Volterra, 1937; Watt, 1964) but the correlations, not to mention causations, are still obscure. In any case, the popularity of the notions that succession generates diversity and that diversity enhances stability predates empirical or theoretical justification. Also, the concepts are normally discussed with poorly defined terms, reflecting an uncertainty about what concept(s) of stability are useful in ecology and, even more important, what we wish to understand about natural ecosystems.
Article
Functional diversity in teams has been conceptualized in a variety of ways without careful attention to how different conceptualizations might lead to different results. We examined the process and performance effects of dominant function diversity (the diversity of functional experts on a team) and intrapersonal functional diversity (the aggregate functional breadth of team members). In a sample of business unit management teams, dominant function diversity had a negative, and intrapersonal functional diversity, a positive effect on information sharing and unit performance. These findings suggest that different forms of functional diversity can have very different implications for team process and performance and that intrapersonal functional diversity matters for team effectiveness.
Article
Management is on the verge of a major breakthrough in understanding how industrial company success depends on the interactions between the flows of information, materi-als, money, manpower, and capital equipment. The way these five flow systems interlock to amplify one another and to cause change and fluctuation will form the basis for antici-pating the effects of decisions, policies, organizational forms, and investment choices." (For-rester 1958, p. 37) Forrester introduced a theory of distribution management that recognized the integrated nature of organizational relationships. Because organizations are so intertwined, he argued that system dynam-ics can influence the performance of functions such as research, engineering, sales, and promotion.
Article
This article offers an exploration of connections between sustainability, risk and uncertainty. Global environmental change and human sustainability are characterized as the challenge of managing change in dynamic systems riddled with uncertainty. A number of disciplines and intellectual traditions, including systems thinking, risk and ecology, are surveyed briefly as sources to inform an approach to this challenge. Approaches to managing risk and uncertainty are discussed, a typology of resilience constructed, and an approach to sustainability defined. The discussion is based on the three imperatives of constant change, everpresent uncertainty and ignorance, and an increasingly stressed interdependency between humans and the biosphere.
Article
The resilience of a natural ecosystem here refers to the ecosystem's ability to repair itself following disturbance and inertia to its ability to resist change when stressed. This paper defines four components of resilience, each of which is amenable to quantification using existing ecological methods. Some standardization in the way in which we conceptualize and measure ecosystem inertia and resilience could aid in the development of improved methods of environmental impact assessment.
Article
Partnerships and alliances are both tools to increase integration in supply chains and effects of increased integration. As a result of alliance, integration in supply chain networks effectiveness and efficiency increase. To develop highly integrated supply chain networks involves investing time, resources and much effort. Therefore, firms often continue and grow within the existing supply chain network rather than choose other alternatives. On the other hand, this also means that the establishment of new alliances is hindered. The gradual changes normally also apply to the dissolution of alliances. Even though the firm seems to leave a specific individual alliance, it might stay on in the same supply chain or still be a part of the firm network in another supply chain. Few radical changes take place. If they do, acquisitions, technological change or strategic alliances between networks are mostly the triggers causing effects on several individual alliances. Over time, as integration increases, supply chain networks become leaner and more tightly connected, and complexity, risk and conflicts rise in the formation and dissolution of alliances. This spiral effect is enhanced by the tendency to imitate the successful supply chains' increasing homogeneity of chains and stronger competition. Thereby the total industry network will be increasingly integrated, which means fewer opportunities to switch and lower flexibility. Most firms are already tied up and the effects more difficult to foresee. To change alliances will be increasingly problematic and costly when both the supply chain and the total industry network are highly integrated. Acquisitions would rise since this might be the only way to break into these integrated supply chains. As a result the number of alternatives decreases and the dynamics of alliances reduced, which in the end forces new waves of radical changes due to "domino" effects.
Article
The dynamic capabilities framework analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change. The competitive advantage of firms is seen as resting on distinctive processes (ways of coordinating and combining), shaped by the firm's (specific) asset positions (such as the firm's portfolio of difftcult-to- trade knowledge assets and complementary assets), and the evolution path(s) it has aflopted or inherited. The importance of path dependencies is amplified where conditions of increasing retums exist. Whether and how a firm's competitive advantage is eroded depends on the stability of market demand, and the ease of replicability (expanding intemally) and imitatability (replication by competitors). If correct, the framework suggests that private wealth creation in regimes of rapid technological change depends in large measure on honing intemal technological, organizational, and managerial processes inside the firm. In short, identifying new opportunities and organizing effectively and efficiently to embrace them are generally more fundamental to private wealth creation than is strategizing, if by strategizing one means engaging in business conduct that keeps competitors off balance, raises rival's costs, and excludes new entrants. © 1997 by John Wiley & Sons, Ltd.
Supply chain risk management (SCRM) is of growing importance, as the vulnerability of supply chains increases. The main thrust of this article is to describe how Ericsson, after a fire at a sub-supplier, with a huge impact on Ericsson, has implemented a new organization, and new processes and tools for SCRM. The approach described tries to analyze, assess and manage risk sources along the supply chain, partly by working close with suppliers but also by placing formal requirements on them. This explorative study also indicates that insurance companies might be a driving force for improved SCRM, as they now start to understand the vulnerability of modern supply chains. The article concludes with a discussion of risk related to traditional logistics concepts (time, cost, quality, agility and leanness) by arguing that supply chain risks should also be put into the trade-off analysis when evaluating new logistics solutions – not with the purpose to minimize risks, however, but to find the efficient level of risk and prevention.
Despite the growing importance of logistics in corporate strategy and the global economy, the logistics literature reveals little effort to build a unified theory of logistics (i.e. a theory of the role of logistics in the firm). Thus, the purpose of this paper is to move toward a unified theory of logistics within the contexts of the strategic role and capabilities of logistics. Considering the importance of logistics in today's corporate strategy, various theories of the firm are adapted to explain the reasons for logistics activities within the firm. The proposed theory should serve as a conceptual reference point for future theory development and empirical research in logistics.
Article
Purpose – Supply chain risk management assumes importance in the wake of organizations understanding that their risk susceptibility is dependent on other constituents of their supply chain. The purpose of this paper is to present an approach to effective supply chain risk mitigation by understanding the dynamics between various enablers that help to mitigate risk in a supply chain. Design/methodology/approach – Using interpretive structural modeling the research presents a hierarchy-based model and the mutual relationships among the enablers of risk mitigation. Findings – The research shows that there exists a group of enablers having a high driving power and low dependence requiring maximum attention and of strategic importance while another group consists of those variables which have high dependence and are the resultant actions. Practical implications – This classification provides a useful tool to supply chain managers to differentiate between independent and dependent variables and their mutual relationships which would help them to focus on those key variables that are most important for effective risk minimization in a supply chain. Originality/value – Presentation of enablers in a hierarchy and the classification into driver and dependent categories is unique effort in the area of supply chain risk management.
Article
Accurate estimates of disaster losses at both the level of the individual firm and the macro economy are critical to the evaluation of risk management strategies. Underestimation of losses will result in too few resources applied to the problem, while overestimation of losses will lead to excess resources being applied. Another motivation is the practical need to distinguish two key strategies in dealing with disasters: pre-event measures (primarily mitigation) and post-event measures (primarily matters of recovery). Resilience, as it is typically known, focuses on the post-event response. This time phase of the disaster management problem and appropriate strategies to deal with it are the focus of this paper.
Article
THIS REVIEW EXPLORES BOTH ECOLOGICAL THEORY AND THE BEHAVIOR OF NATURAL SYSTEMS TO SEE IF DIFFERENT PERSPECTIVES OF THEIR BEHAVIOR CAN YIELD DIFFERENT INSIGHTS THAT ARE USEFUL FOR BOTH THEORY AND PRACTICE. THE RESILIENCE AND STABILITY VIEWPOINTS OF THE BEHAVIOR OF ECOLOGICAL SYSTEMS CAN YIELD VERY DIFFERENT APPROACHES TO THE MANAGEMENT OF RESOURCES. THE STABILITY VIEW EMPHASIZES THE EQUILIBRIUM, THE MAINTENANCE OF A PREDICTABLE WORLD, AND THE HARVESTING OF NATURE'S EXCESS PRODUCTION WITH AS LITTLE FLUCTUATION AS POSSIBLE. THE RESILIENCE VIEW EMPHASIZES DOMAINS OF ATTRACTION AND THE NEED FOR PERSISTENCE. BUT EXTINCTION IS NOT PURELY A RANDOM EVENT: IT RESULTS FROM THE INTERACTION OF RANDOM EVENTS WITH THOSE DETERMINISTIC FORCES THAT DEFINE THE SHAPE, SIZE AND CHARACTERISTICS OF THE DOMAIN OF ATTRACTION. THE VERY APPROACH, THEREFORE, THAT ASSURES A STABLE MAXIMUM SUSTAINED YIELD OF A RENEWABLE RESOURCE, MIGHT SO CHANGE THESE CONDITIONS THAT THE RESILIENCE IS LOST OR IS REDUCED SO THAT A CHANCE AND RARE EVENT THAT PREVIOUSLY COULD BE ABSORBED CAN TRIGGER A SUDDEN DRAMATIC CHANGE AND LOSS OF STRUCTURAL INTEGRITY OF THE SYSTEM. A MANAGEMENT APPROACH BASED ON RESILIENCE, ON THE OTHER HAND, WOULD EMPHASIZE THE NEED TO KEEP OPTIONS OPEN, THE NEED TO VIEW EVENTS IN A REGIONAL RATHER THAN A LOCAL CONTEXT, AND THE NEED TO EMPHASIZE HETEROGENEITY. THE RESILIENCE FRAMEWORK DOES NOT REQUIRE A PRECISE CAPACITY TO PREDICT THE FUTURE BUT ONLY A QUALITATIVE CAPACITY TO DEVISE SYSTEMS THAT CAN ABSORB AND ACCOMMODATE FUTURE EVENTS IN WHATEVER UNEXPECTED FORM THEY MAY TAKE.
Article
Purpose – The purpose of this article is to empirically test the impact of supply-chain management (SCM) capabilities on business performance so as to determine to what degree customer-oriented SCM issues influence competitive position and organizational performance. Design/methodology/approach – A rigorous methodology is employed to generate a reliable and valid measurement instrument. Responses from 474 manufacturing managers are then utilized to test a causal model using LISREL®. Findings – The results indicate significant positive relationships exist among three types of SCM capabilities (outside-in, inside-out, and spanning) and business performance (perceived customer value, customer loyalty, market performance, and financial performance). Practical implications – The article demonstrates that strategically developing SCM capabilities such as efficient inbound and outbound transportation, warehousing, and inventory control, production support, packaging, purchasing, order processing, and information dissemination enable a manufacturing firm to identify and take advantage of opportunities in the global marketplace. Research limitations/implications – The sample was drawn from manufacturing firms in the USA across four SIC codes. Future studies could collect more extensive data to confirm, refine, and expand upon the model presented and the associated construct measures utilizing confirmatory factor analysis. Extending the research to include additional industries and firms from outside of the USA would enhance the generalizability and usefulness of the findings. Originality/value – The paper statistically validates that managers should regard the cultivation of SCM capabilities as a proprietary resource that facilitates competitive advantage. It also contributes a concise instrument that may be used by academics interested in the areas of supply-chain management processes and firm performance.
Article
Purpose – This paper seeks to understand business requirements for supply chain risk management (SCRM) from a practitioner perspective. Design/methodology/approach – Based on the findings from an exploratory quantitative survey and qualitative focus group discussions with supply chain managers, some issues of SCRM are derived and structured along the three conceptual levels of “philosophy”, “principles” and “processes”. Findings – The survey showed that 44 per cent of all eight responding companies expect the vulnerability of their supply chains to increase in the next five years. However, the concept of SCRM is still in its infancy. Originality/value – The paper contributes to our knowledge on SCRM by presenting the business requirements from a practitioner perspective and by deriving a structure for an integrated approach to SCRM which can guide further research.
Purpose – Global supply chains are more risky than domestic supply chains due to numerous links interconnecting a wide network of firms. These links are prone to disruptions, bankruptcies, breakdowns, macroeconomic and political changes, and disasters leading to higher risks and making risk management difficult. The purpose of this paper is to explore the phenomenon of risk management and risk management strategies in global supply chains. Design/methodology/approach – This paper is based on an extensive literature review and a qualitative study comprising 14 in-depth interviews and a focus group meeting with senior supply chain executives. Findings – The study provides insights into the applicability of six risk management strategies with respect to environmental conditions and the role of three moderators. Research limitations/implications – The model is developed in a global manufacturing supply chain context. It should be tested in other contexts and with other methods to provide generalizability. The study takes a much needed step toward building a theory of risk management in global supply chains, which opens important future research directions. Practical implications – This research provides direction to managers for choosing risk management strategies based on the global supply chain environment. Moderators have practical implications for global supply chain managers. Originality/value – The paper addresses an identified gap in the literature for selecting risk management strategies in global supply chains. It employs grounded theory, a methodology appropriate for theory-building, to explore a phenomenon with an inadequate theoretical base.
Article
Resilience is defined as "the human capacity to face, overcome, and be strengthened by experiences of adversity." This study used an Eriksonian developmental model to examine parents', caregivers', and children's resilience-promotion in children up to 12 years of age. Age and gender differences and cultural/ethnic similarities and differences in resilience promotion were examined. Subjects responded to 3 age-specific (birth to 3 years, 4 to 6 years, and 9 to 11 years) structured situations of adversity. Data were received from 27 sites in 22 countries for a total of 1,225 target children and families/caregivers. Findings indicated that about one-third of parents promoted resilience. Resilience was promoted more in situations where helplessness and need were perceived and where support seemed feasible and less in situations in which there were perceived threats to authority, in which blame and punishment seemed more important than understanding or communication, and in which the person who could promote resilience was more concerned with frustration. Younger children (4-6) relied more than older children on help and guidance from parents to deal with adversity; older children (9-11) promoted resilience as often as their parents. When younger children promoted resilience, girls drew on empathy and helpfulness more than boys. For older children, girls drew on trusting relationships, role modeling, and promoting autonomy more than boys; all internal resilience factors except a sense of control; and all interpersonal skills except managing impulsivity and seeking help which were used with the same frequency as boys. Examples from Sudan, Namibia, and Armenia suggested differences and similarities in successful resilience promotion. Socioeconomic status had an insignificant impact on resilience-promoting behavior; the difference was primarily in the number of resilience factors used. (Contains 43 references.) (KB)