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Resilience of medium-sized firms to supply chain disruptions: the role of internal social capital
Abstract
Purpose
The purpose of this paper is to explore resources or capabilities that enable medium-sized firms to be resilient, namely, to avoid and recover from supply chain disruptions.
Design/methodology/approach
A case-study method is employed with four medium-sized manufacturing firms headquartered in the USA that have global supply chains. Data are collected from semi-structured interviews with key informants from diverse functions and managerial levels, archival documents, observation and a resilience assessment.
Findings
Internal social capital emerged as a resilience-enhancing resource, comprising: structural capital grounded in small network size, geographical proximity among decision makers and low hierarchy; relational capital grounded in close relationships, commitment and respect; and cognitive capital grounded in long employee tenure.
Originality/value
This is the first paper in the supply chain management literature to examine the resilience of medium-sized firms, an under-researched context. It is also the first paper to introduce internal social capital as a resilience-enhancing resource. Hence, this is among the few papers to propose a resilience-enhancing resource rooted not in a firm’s supply chain operations but its human resources. This paper, moreover, identifies several facets of internal social capital within medium-sized firms. Finally, the paper makes several managerial contributions.
... The aforementioned examples also highlight how the cultivation of SCRes in uncertain business landscapes requires multifaceted strategic approaches, at the heart of which lies the development of network capabilities (NCs) and innovation ambidexterity (IA) (O'Reilly & Tushman, 2013;Polyviou et al., 2019). NCs refer to a firm's ability to effectively manage and utilise its relationships and interactions within its supply network, enhancing flexibility, information flow, and collaborative innovation (Partanen et al., 2020;Villena et al., 2011). ...
... By examining the role played by SCUn as a driver of the adoption of NCs and IA for SCRes enhancement, we can gain deeper insights into firms' strategic responses to uncertainty and their efforts to build adaptive capacity. Also, studies have linked NCs with IA (Al-Tabbaa De Silva et al., 2022), and relational and collaborative capabilities with SCRes (Polyviou et al., 2019;Saglam et al., 2022); however, it remains poorly understood how the combined effect of NCs and IA translates into SCRes (Nikookar et al., 2024;Oyedijo et al., 2022). As NCs involve complex sets of collaborative practices and strategic partnerships (Walter et al., 2006), their interaction with IA represents a rich area for exploration, particularly in resource-constrained settings. ...
... NCs enable firms to establish and adapt their external network connections, reallocate key resources among partnerships, and effectively manage a diverse array of relationships with different network partners (Faroque et al., 2022). Firms recognise that the ability to build, exploit, and nurture networks is a dynamic force that fosters innovation, facilitates resource reconfiguration, and ultimately enables the sustainment of competitive advantage (Polyviou et al., 2019;Sarwar et al., 2021). NCs mobilise firms by enabling them to change their circumstances and strike a balance between the benefits and risks inherent in the SC network (Yang et al., 2018). ...
With our study, we aimed to enrich the discourse on supply chain disruptions by exploring the strategic responses of firms to supply chain uncertainty (SCUn) that enhance supply chain resilience (SCRes). Drawing on the dynamic capabilities view (DCV), we investigated whether and how firms utilise uncertainty amid geopolitical turmoil as a catalyst to enhance SCRes. This contrasts with the predominant focus found in the existing literature on the detrimental impacts of uncertainty amid rising geopolitical tensions. Using survey data drawn from 242 firms across multiple industries in Pakistan, we employed structural equation modelling (SEM) to test our proposed model, introducing network capabilities (NCs) and innovation ambidexterity (IA) as mediators to elucidate their differential roles in the SCUn-SCRes relationship. Our findings reveal that SCUn triggers strategic responses aimed at building SCRes, with NCs emerging as a significant mediator that enhances SCRes. However, IA has an insignificant mediating effect. Notably, our study uncovers a sequential mediation pathway from NCs to IA, highlighting the dynamic interplay between these capabilities in translating SCUn into enhanced SCRes amid global crises. Our study provides actionable insights for logistics and supply chain managers who navigate uncertain environments amid geopolitical tensions, emphasizing the importance of NCs in driving IA towards achieving SCRes. Our research, which makes a novel contribution by going beyond the conventional perspectives on SCUn and SCRes, advances a new stream of literature on how SCUn influences SCRes through the mediating roles of NCs and IA.
... 1 This micro dimension reflects broader transformations in Western societies, driven by long-term immigration processes, resulting in increased ethnic heterogeneity (Prenzel et al., 2024). Ethnic diversity is one of the important dimensions of cultural diversity (Audretsch et al., 2021), and culture is an important factor affecting the patterns of growth and performance of small and medium-sized enterprises (SMEs) (Parrilli, 2012;Polyviou et al., 2020). Within this broader context, our research focuses on how the micro-level ethnic composition of a business team impacts SMEs' employment growth. ...
... Within this broader context, our research focuses on how the micro-level ethnic composition of a business team impacts SMEs' employment growth. To address this question, we propose a theoretical framework that first emphasizes the importance of sharing knowledge assets (Polyviou et al., 2020) and particularly their role in achieving high growth performance (Foss et al., 2008). Knowledge sharing is a vital aspect of social capital alongside trust and shared norms. ...
... In other words, we could say that social capital enhances the impact of knowledge and human capital. Accordingly, our proposed framework underscores the importance of social capital within business teams (Polyviou et al., 2020), which may imply relatively higher gains from diversity compared with those arising between the directors of large corporations. We posit that in addition to the knowledge contributed by individual team members (i.e. ...
Plain English Summary
Culturally diverse business teams of small and medium-sized enterprises (SMEs) boost employment growth through a richer internal pool of knowledge, amplifying this effect via strategic choices. Exploring the impact of ethnic diversity within business teams on the employment growth of SMEs, we find that ethnically diverse teams tend to outperform more homogenous ones in terms of employment growth. We posit that this advantage arises from a richer pool of knowledge shared within diverse teams, which is facilitated by close cooperation within SME teams that builds internal social capital. Furthermore, diversity within business teams enhances attitudes of openness and tolerance that in turn may facilitate motivation and ability of team members to access knowledge outside the firm. This drives employment growth and also amplifies the effects of digitalisation, exporting, and innovation strategies. Our study suggests that fostering ethnic diversity within SME business teams can enhance both knowledge resources and social capital, affecting business growth. Entrepreneurs should consider embracing cultural diversity within their SME business teams as beneficial, while policymakers may appreciate that within-firms micro-effects of diversity may accumulate to help local community-building and economic development.
... SCRES is not only for large corporations but also for small and medium-sized enterprises (SMEs). SMEs face greater challenges in pursuing SCRES due to limited financial, human, and technological resources (Bak et al. 2023;Brustbauer 2016;Polyviou et al. 2020;Sullivan-Taylor and Branicki 2011). SMEs are intriguing subjects for study for several reasons. ...
... The existing literature on SCRES calls for further research with a focus on SMEs (Ali and Gölgeci 2019;Bak et al. 2023;Drozdibob et al. 2023;Kamalahmadi and Parast 2016;Manuj et al. 2024;Scholten et al. 2017). According to Polyviou et al. (2020), there is a lack of research on resilience within SMEs, and little is known about what constitutes resilience in this context. A study by Bak et al. (2023) concludes that there is a necessity for research to enhance SMEs' SCRES capabilities, and Pettit et al. (2019) advocate for research that tailors SCRES frameworks to the context of SMEs. ...
... Globally, SMEs contribute significantly to the economy, accounting for at least 70% of worldwide production (Moore and Manring 2009). However, research on SCRES from an SME perspective remains limited (Bak et al. 2023;Kamalahmadi and Parst 2016;Pal et al. 2014;Polyviou et al. 2020). ...
This paper aims to enhance the understanding of how small and medium-sized enterprises (SMEs) can bolster their resilience to supply chain disruptions by engaging and aligning cross-functional staff in the process of developing supply chain resilience (SCRES). Employing process theory, the study adopts a multiple case-study methodology involving 18 Danish production SMEs across two iterative phases: an exploratory phase encompassing eight case companies, and a subsequent refinement phase involving an additional ten case companies. Utilizing a mixed-method approach comprising semi-structured interviews, card sorting exercises, observational studies, and a questionnaire survey, the research proposes a four-stage process for enhancing SCRES. This process includes: 1) mapping the supply chain, 2) identifying vulnerabilities and capabilities within each function, 3) prioritizing and creating cross-organizational alignment, and 4) developing action plans. The refined approach, validated through the ten Danish SMEs in the refinement phase, offers a practical and relevant framework for companies seeking to mitigate vulnerabilities and enhance capabilities in their supply chains. By strengthening SMEs' resilience against supply chain disruptions, this approach serves as a potential model for other companies striving to achieve SCRES.
... P r e p r i n t n o t p e e r r e v i e w e d 9 conceptualized as "the sum of the actual and potential resources embedded within, available through, and derived from the network of relationship possessed by an individual or social unit" (Nahapiet & Goshal, 1998, p. 243). Social capital benefits an organization both via external social networks (bridging social capital) and through the closeness of employees within the organization (bonding social capital) (Adler & Kwon, 2002;Polyviou et al., 2020). The features of trust, togetherness, common understanding, and openness for discussion within the organization's employees can strengthen the cohesion and shared understanding of the organization's goals (Nahapiet & Goshal, 1998). ...
... Several prior studies have demonstrated that social capital has a positive effect on organizational resilience (Gölgeci & Kuivalainen, 2020;Polyviou et al., 2020). ...
... The social relationships that are established through interactions can offer organizations valuable resources and information (Du et al. 2014). Relational capital is defined as the strength of these relationships, that is, the level of reciprocity, trust, and respect between firms and partners (Aslam et al. 2022;Johnson et al. 2013;Polyviou et al. 2020). As these relationships strengthen, opportunistic behaviors that might occur in the cooperation can be reduced (Jia et al. 2020). ...
... Cognitive capital is defined as resources that promote the shared representations, understandings, and systems of meaning shared among various participants (Nahapiet and Ghoshal, 1998). Cognitive capital will increase when organizations hold similar aspirations, interests, objectives, and visions with their partners (Aslam et al. 2022;Jia et al. 2020;Polyviou et al. 2020). A shared vision can promote mutual understanding among members and support their work to achieve similar goals (Robert Jr et al. 2008). ...
Organizational resilience is becoming a priority for enterprises’ survival in volatile, uncertain, complex, and ambiguous (VUCA) contexts. However, few studies have investigated how information technology (IT) capabilities promote organizational resilience. To fill this gap, we draw on the IT capabilities literature and social capital theory to build a theoretical model to investigate the impact of IT capabilities on organizational resilience. The concept of social capital is introduced as a mediating mechanism in the relationship between IT capabilities (i.e., infrastructure capability, human capability, and business spanning capability) and organizational resilience (i.e., reactive and proactive resilience). The model is tested based on 369 Chinese manufacturing enterprises that survived the COVID-19 pandemic. This study confirms the key role of IT capabilities in building organizational resilience and the critical mediating role that social capital exhibits between IT capabilities and organizational resilience. This study has both theoretical and managerial implications for enterprise digital resilience.
... While SME exporters may suffer from a lack of resources compared to multinational enterprises (MNEs), their size may benefit when facing a disruption. As SMEs enjoy a smaller and more informal organisational structure, decision-making and information diffusion can happen rapidly (Polyviou et al., 2019). Given that reaction speed has been found to mitigate a disruption (Christopher and Peck, 2004), this may be a critical factor in the SME export context. ...
... More specifically, RDT proposes that firms with multiple supplier choices are less dependent on a single supplier (Casciaro and Piskorski, 2005). Furthermore, our findings supported the arguments by Polyviou et al. (2019) that the size of an SME can be a strength during a disruption as they can respond quickly. SME exporters who can swiftly switch to alternative suppliers amid disruptions are employing a buffering strategy. ...
Purpose
Motivated by the severe impact of global supply chain disruptions and the lack of understanding of supply chain resilience from an SME exporter perspective in the international marketing literature, this paper sets out to explore how SME exporters achieve resilience through strategic choices related to sourcing and manufacturing during global disruptions.
Design/methodology/approach
The study adopts a qualitative, multiple-case-studies approach to identify the key strategic drivers and contextual factors influencing SME exporters’ supply chain resilience. Our study adopted an SME exporter perspective and featured an unprecedented global supply chain disruption context. New Zealand (NZ) was chosen as the key home country context for the participants of this study. Five NZ SME exporters were selected for our case studies.
Findings
This study redefines buffering, bridging and a mixed strategy for an SME exporter facing global supply chain disruptions. SME exporters with high situational control are likely to pursue a buffering strategy that reduces their resource dependence on foreign suppliers and their reliance on information support from these suppliers. In contrast, when the firm perceives little control over the supply chain, it will decide upon a bridging strategy that aims to build solid relationships with supply chain partners. Exporters opt for a mixed strategy when they do not see themselves clearly in high or low situational control.
Research limitations/implications
As global disruptions arise and evolve, supply chain uncertainty and exporters’ sense of situational control manifest differently across industries, product lines, markets and sourcing countries. It is essential to understand that firms can choose a mixed strategy based on these supply chain conditions. While our study was fortuitously timed, conducting multi-country studies could provide more comparative insights that transcend national borders. Additionally, our study did not examine organizational and capability-based factors. Future research may benefit from exploring how an SME exporter develops strategic capabilities to achieve resilience over its lifetime.
Practical implications
Businesses see survival as the most pivotal concern during a global supply chain disruption. Many companies have had to make on-the-spot decisions about whether they should shift or redesign their supply chains in the middle of a global disruption. There is no “best strategy” for an SME exporter to take. Rather, managers should make strategic decisions based on how much control or influence they have over a particular part of their supply chain. The level of control is determined by the SME exporter’s overall resource dependencies and information needs in particular parts of their supply chain.
Originality/value
We adopt resource dependence theory and information processing theory to guide our study and place exporters' situational control in the centre of drivers to firms' strategic choices during global disruptions. We make a novel attempt to incorporate the contextual conditions of the COVID-19 pandemic into the theorization of supply chain resilience. We make managerial recommendations to help SME exporters navigate global supply chain disruption challenges.
... The just-in-time (JIT) inventory systems commonly employed by SMEs, designed to reduce costs and improve efficiency, became a significant liability when supply chains were disrupted (Sodhi et al., 2012). The sudden and unpredictable nature of the pandemic caused widespread inventory shortages, as factories shut down and transportation networks were severely limited (Polyviou et al., 2019). For example, a study of SMEs in the European Union found that over 60% of businesses experienced critical inventory shortages during the early stages of the pandemic, leading to significant production delays and lost sales opportunities (Chen et al., 2022;Shamim, 2022). ...
... Logistical bottlenecks were another major challenge for SMEs during the COVID-19 pandemic. The closure of borders, reduction in transportation capacity, and imposition of quarantine measures led to significant delays in the movement of goods, both domestically and internationally (Polyviou et al., 2019). SMEs, which often rely on fewer logistical partners and have less bargaining power, were disproportionately affected by these disruptions (Papadopoulos et al., 2017). ...
The COVID 19 pandemic has drastically disrupted global supply chain management, significantly affecting Small and Medium
Sized Enterprises (SMEs). This study investigates the profound impacts of the pandemic on SMEs’ supply chain operations, highlighting key challenges such as inventory shortages, logistical bottlenecks, and increased costs. The research draws on a combination of qualitative and quantitative methods to provide a comprehensive analysis of how SMEs have adapted their supply chain strategies in response to the pandemic. Findings suggest that while SMEs were disproportionately affected by supply chain disruptions, those that swiftly adopted digital tools and diversified their supply chains were better positioned to mitigate risks. The study contributes to the growing body of literature on supply chain resilience, offering practical recommendations for SMEs to enhance their supply chain management in the face of future global disruptions.
... The just-in-time (JIT) inventory systems commonly employed by SMEs, designed to reduce costs and improve efficiency, became a significant liability when supply chains were disrupted (Sodhi et al., 2012). The sudden and unpredictable nature of the pandemic caused widespread inventory shortages, as factories shut down and transportation networks were severely limited (Polyviou et al., 2019). For example, a study of SMEs in the European Union found that over 60% of businesses experienced critical inventory shortages during the early stages of the pandemic, leading to significant production delays and lost sales opportunities (Chen et al., 2022;Shamim, 2022). ...
... Logistical bottlenecks were another major challenge for SMEs during the COVID-19 pandemic. The closure of borders, reduction in transportation capacity, and imposition of quarantine measures led to significant delays in the movement of goods, both domestically and internationally (Polyviou et al., 2019). SMEs, which often rely on fewer logistical partners and have less bargaining power, were disproportionately affected by these disruptions (Papadopoulos et al., 2017). ...
The COVID-19 pandemic has drastically disrupted global supply chain management, significantly affecting Small and Medium-Sized Enterprises (SMEs). This study investigates the profound impacts of the pandemic on SMEs’ supply chain operations, highlighting key challenges such as inventory shortages, logistical bottlenecks, and increased costs. The research draws on a combination of qualitative and quantitative methods to provide a comprehensive analysis of how SMEs have adapted their supply chain strategies in response to the pandemic. Findings suggest that while SMEs were disproportionately affected by supply chain disruptions, those that swiftly adopted digital tools and diversified their supply chains were better positioned to mitigate risks. The study contributes to the growing body of literature on supply chain resilience, offering practical recommendations for SMEs to enhance their supply chain management in the face of future global disruptions.
... A complex and changing global environment may pose a larger threat to SMEs than to larger companies (Bak et al. 2020). SMEs are generally more unprepared for larger environmental changes (Gunasekaran et al. 2011) and more absent of insurance, risk assessments, or businesscontinuity plans, which makes them especially vulnerable for example to natural disasters (Bak et al. 2020;Polyviou et al. 2020). SMEs are typically constrained by shortterm decision horizons and lack of strategic planning, and SMEs have less specialized resources to quickly detect and develop responses to emerging novel and tricky operational contingencies (Burnard and Bhamra 2011). ...
... Conversely, when confronted with substantial disruptions, SMEs demonstrate an increased intention to reshore, surpassing that of larger companies. This finding strengthens interpretations from previous research that smaller firms are less prepared for (Gunasekaran et al. 2011) and have less specialized resources to detect and respond to larger environmental changes (Burnard and Bhamra 2011), and hence are more highly affected (Bak et al. 2020;Polyviou et al. 2020). Under such circumstances it is highly likely that smaller firms to a higher extent consider reshoring in contrast to other solutions as the most viable, and perhaps the only possible solution to reduce risk and retain operational efficiency. ...
Empirical investigations of how the reshoring of manufacturing is affected by Industry 4.0 technologies, supply chain disruptions, and made-in effects are rare in the extant academic literature. This paper contains an empirical analysis of how these variables affect reshoring and reshoring intentions. Results from a 2022 questionnaire survey including 152 offshoring manufacturing firms show that reshoring and reshoring intentions are associated positively with investments in automation in manufacturing, and with employee made-in. Results also showed that while Covid-19 associated disruptions increased firms’ reshoring intentions equally across firm sizes, smaller and larger firms reacted quite differently towards more well-known disruption types: larger firms decreasing reshoring intentions with higher levels of uncertainty and smaller firms increasing reshoring intentions with higher levels of uncertainty. These results point to the importance of creating consciousness about the dynamics of production localization and how firm-level and situation-specific contingencies may interfere with Industry 4.0 technology-, supply chain disruption-, and made-in effects on strategic reshoring decisions.
... Ambulkar et al. (2015), Kim et al. (2015) and Hussain et al. (2023) together with Hamidu et al. (2023) along with Aldrighetti et al. (2021) and Yu et al. (2019) and Polyviou et al. (2020) have authored leading works about SC disruption and resilience. Very few studies examine the influence of logistics operations on supply chain resilience and maintenance of functional supply chain operations throughout disruptions (Butlet, 2018). ...
Various disturbances can affect Supply chain (SC) networks in the dynamic global environment which comprises natural disasters and geopolitical unrest and worldwide pandemics. These disturbances caused numerous organizations to endure severe delays and stockouts together with substantial financial losses which uncovered the weaknesses of typical SC models. Research explores essential steps for upgrading SC resilience while developing new strategic logistics approaches. The research examines how innovative logistical solutions help reinforce supply chains against disruption events. Fifteen managers together with senior managers alongside senior employees from Indian smart manufacturing organizations received a survey for their participation. The survey-based approach and grey relational analysis (GRA) method established complete structural relationships between the developed logistics solutions which were subjected to ranking analysis. Research involved wide literature assessments along with knowledge from operational practices which revealed the development of key logistical strategies including AI-based predictive maintenance together with Digital twins and IoT systems for flexible transportation methods. It is alongside distributed smart warehousing and workforce flexibility for skills development through blockchain security solutions alongside digital platforms for business collaborations and reverse logistics models and agile supply chain networks designed for supplier flexibility. The study classifies Digital Platforms and Cloud-Based Collaboration (LS6) and Digital Twins and IoT (LS2) through their corresponding positions in the logistics solution list. The tested innovative logistic approaches provide manufacturers with better crisis response abilities alongside operational performance improvements. Through this study researchers and practitioners gain an opportunity to initiate proactive logistics innovation strategies during disruption times by developing operational guidelines. The purpose of this study lies in its discovery of alternative logistic solutions for manufacturing organizations to deal with SC resilience challenges and their subsequent ranking by GRA methodology.
... This is particularly true of resource-constrained environments where the formal resources are scarce. Thus, cyber resilience can enable firms to protect and apply the knowledge and resources acquired via their social networks (Polyviou et al., 2019). ...
Drawing on social capital theory, this study explores the antecedents of AI readiness in Small and Medium-sized Enterprises (SMEs) operating in resource-constrained environments, emphasising capabilities that mitigate cyber risks, and foster value construction in SMEs. Specifically, the study examines how structural, cognitive, and relational social capital fosters cyber resilience and contributes to proactive value construction, enhancing SMEs’ AI readiness and enabling them to construct and sustain value while safeguarding against potential cyber threats. The study adopts a Covariance-based Structural Equation Modelling (CB-SEM) approach to analyse 589 valid responses. A multi-wave data strategy with an interval cross-lagged design was implemented to reduce the risk of common method bias. The findings reveal that structural and relational capital significantly drive AI readiness, while cognitive social capital enhances cyber resilience, which is pivotal in constructing and protecting organisational value. Moreover, cyber resilience mediates the relationship between cognitive social capital and AI readiness, and enabling value construction amid cyber-related disruptions. SMEs with robust social capital networks are better equipped to leverage AI technologies for innovation and growth, construct new value streams, and defend against cyber risks, securing value in dynamic digital environments. This study contributes to the growing discourse on cybersecurity and digital transformation by offering insights into how SMEs can bolster digital innovation and construct sustainable value in the face of mounting cyber risks.
... Internal social capital acts as a resource that enhances supply chain resilience (Polyviou et al., 2019). Similarly, a firm's internal social capital in the form of internal integration positively influences SCRM capabilities in terms of warning and recovery (Polyviou et al., 2020a). ...
The growth of the Morowali Industrial area and the Archipelago Capital in Kalimantan is the potential for the development of agro-products in Central Sulawesi Province, which is centered in the Napu Valley, Palolo and Biromaru areas which have also become leading horticultural centers. The purpose of this research is to examine the vegetable supply chain model from Napu and its surroundings to the Capital City of the Archipelago in supporting the new area and strengthening the economic order, especially for vegetable producing areas in Central Sulawesi Province. The findings of this study indicate that there are main activities in the agro industry, especially horticulture, namely inbound, conversion and outbound. It was also found that there are 4 supply chain models of horticultural products from the Napu Valley and its surroundings to the target market.
... SMEs have different requirements for the systems to maximize their output. SMEs have higher barriers to financial resources compared to large companies [9] [10]. Therefore, they often lack the resources to have the full support of consultancies, test, evaluate and compare various technologies, and create specific strategies [11]. ...
... Family social capital enables CEOs to leverage internal and external social bonds to pursue the business' strategic aims (Hoffman et al., 2006). In times of crisis, family social capital tied to internal stakeholders may be leveraged to mitigate the shocks on social cohesion and morale (Aldrich & Meyer, 2015;Polyviou et al., 2019), enabling adjustments in business operations, as well as facilitate collective decision-making among family members based on their respective experiences and knowledge (Eddleston et al., 2010;Salvato et al., 2020). Furthermore, by leveraging family networks and relations to external stakeholders, CEOs can receive additional business signals during uncertain periods that can contribute to bridging the information gaps (Stacchini & Degasperi, 2015). ...
The purpose of this paper is to understand the conditions that influence family CEOs’ resilience in times of crisis. Drawing upon social cognitive theory and adopting a fuzzy-set qualitative comparative analysis analytic approach, the article analyzes data from 67 family businesses. The findings show that CEO resilience emerges from the interplay of different sets of conditions in single- and multi-generational family businesses. The study makes the contribution that CEO resilience is contingent on dynamics at individual, family, and business levels, suggesting that CEO resilience in crisis times reflects a “crisis bricolage” of “making do” with resources that are “in hand” and “within reach.”
... Most studies in the supply chain resilience literature identify capabilities that enhance resilience (e.g., Christopher and Peck 2004;Pettit, Fiksel, and Croxton 2010;Polyviou, Croxton, and Knemeyer 2020) but do not address how these capabilities are developed. Our study's next contribution argues that practices, behaviors, and structures are fundamental building blocks in all organizations, which organizations have control over and can manipulate to develop and enhance their resilience-enhancing capabilities. ...
Supply chain disruptions regularly interrupt the normal operations of organizations, impairing their financial, operational, and service performance. Therefore, organizations must develop capabilities to enhance their resilience–their ability to anticipate, overcome, and transform after disruptions. The literature proposes that agility, adaptability, and alignment (AAA capabilities) enhance long‐term organizational success but does not explicitly link these AAA capabilities to resilience. Motivated by conversations with senior supply chain leaders, our research explores how organizations utilize practices, behaviors, and structures to build AAA capabilities in their pursuit of resilience over different phases of disruption. We use a grounded theory approach, conducting in‐depth, semi‐structured interviews with supply chain executives. Our findings contribute to the supply chain resilience literature by (a) highlighting how distinct practices, behaviors, and structures support the development of distinct AAA capabilities, (b) demonstrating which AAA capabilities are most influential in enhancing resilience during specific phases of a disruption, and (c) illustrating how the AAA capabilities operate in a feedback loop to synergistically improve resilience over the lifecycle of a disruption.
... Any significant disturbance in these key relationships can have a disproportionately severe impact on SMEs compared to larger firms, which typically maintain more diversified and resilient supply chains. For SMEs, such disruptions may precipitate operational delays, production stoppages, or even jeopardize their very existence [8]. For instance, during the COVID-19 pandemic, many SMEs experienced severe supply chain disruptions due to their dependence on single-source suppliers in heavily affected regions. ...
Previous research on supply chain dependence has predominantly focused on large firms, leaving a significant gap in the literature regarding small and medium-sized enterprises (SMEs), an often overlooked but crucial sector of the economy. This study aims to address this gap by examining the relationship between supply chain dependence (i.e., supplier dependence, customer dependence) and SMEs’ performance—specifically profit and growth. We employ a multiple linear regression model with two-way fixed effects (firm and year) to analyze data from SMEs listed on China’s National Equities Exchange and Quotations (NEEQ) from 2013 to 2020, investigating the impact of supplier dependence and customer dependence on SMEs’ profitability and growth. We find that customer dependence has a significant positive effect on both SMEs’ profit and growth, while supplier dependence negatively impacts SMEs’ profit but does not significantly affect SMEs’ growth. Additionally, we conduct a heterogeneity analysis to explore how the influences of supplier dependence and customer dependence on SMEs’ performance vary based on SMEs’ characteristics, such as age, initial size, and innovation orientation. This research not only enhances the existing literature on supply chain dependence by providing insights specific to SMEs but also offers practical recommendations for improving supply chain management strategies within these firms.
... Furthermore, while one-third of the reviewed articles address both SMEs and large enterprises, some studies highlight differences in resource availability. SMEs, with their limited resources (Doh and Kim, 2014;Eggers, 2020;OECD, 2021;Polyviou et al., 2019), face greater challenges, particularly when dealing with the uncertainties inherent to systemic risks (Roscoe et al., 2020). Therefore, it is essential to approach this resource capital parameter with caution. ...
Purpose
This study aims to develop an integrative framework for strategic intelligence (SI) tailored to guide companies navigating systemic disruptions within global supply chains, identifying key determinants for its effective deployment. Current literature on management systems addresses SI components individually, hindering a precise definition and implementation strategy. This systematic review aims to fill these gaps by establishing a conceptual model of SI capability, emphasizing the interdependence of its dimensions.
Design/methodology/approach
Following the Joanna Briggs Institute (JBI) mixed-method analysis approach and Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) statement, this systematic review synthesizes empirical studies, conceptual papers, mathematical models and literature reviews on SI capability dimensions. It adopts a flexible approach to explore SI within supply chain resilience during systemic crises.
Findings
The study enhances and broadens the field of dynamic capabilities (DCs) by advancing knowledge on SI as a dynamic capability inducing resilience within supply chains facing systemic risks. Additionally, it synthesizes and offers perspective on a rapidly expanding body of literature from the past three years, identifying emerging trends and gaps.
Research limitations/implications
This research focused on three capacities: Supply Chain Visibility (SCV), Environmental Dynamism (ED) and Timely Seizing and Detection-Making (TSDM). While other dynamic capabilities may enhance SC resilience (SCR), this study emphasized the analytical and decision-making dimensions critical for improving SCR.
Originality/value
This systematic literature review introduces a novel conceptual framework, providing a foundation for empirical investigations. By offering an integrated theoretical perspective, the study proposes actionable research propositions and insights into SI’s strategic role in crisis management within supply chains.
... In their studies, Scholten et al. (2019) suggested specific learning mechanisms to foster the resilience of supply chains. The study by Polyviou et al. (2020) aims to investigate the tools or skills that help medium-sized businesses be resilient, specifically to prevent and recover from supply chain interruptions. The effectiveness of the most well-known practices to improve resilience (flexibility, agility, redundancy, and collaboration) in reducing each type of supply chain disruption (demand, supply, process, control, and environmental disruptions) is examined through a systematic review of the literature by Shekarian et al. (2021). ...
The COVID-19 pandemic has significantly impacted project implementation costs and caused delays across numerous industries. Various analysis found in the literature show that the predominant cause of project delays and higher costs have been people, material, and equipment movement restrictions, supply chain disruptions, and social distancing policies. The COVID-19 pandemic has seriously disrupted international supply chains in a variety of sectors. Many variables, including travel restrictions, labor shortages, lockdown procedures, and a spike in demand for medical supplies and equipment, were the main causes of the interruptions. To confirm this assumption, a comprehensive study was conducted to understand whether these factors affected project delays and cost overruns. A multiple regression analysis was conducted to analyze the significance and the volume of the effects of specific factors on project delays and rising project costs. Contrary to the previous understanding, we found that only a few factors or project risks associated with the COVID-19 pandemic have an effect. The findings show that only those risk factors related to material supply and epidemic prevention methods that the company was requested to implement inside the company had the influence on the delays in project implementation, while other risk factors had no major effects on a project schedule. Additionally, it has been found that only risks associated with rising costs of material supply affected the rising costs of projects during the COVID-19 pandemic, while other project risk factors had no influence. These findings can be valuable for developing risk mitigation strategies that will enable a smooth implementation of projects during similar events and long-term disruptions.
... Therefore, we hypothesize that: H3: SM use at work has a positive effect on cognitive social capital. Several previous studies have examined the effect of social capital dimensions on knowledge sharing (Ganguly et al., 2019;Polyviou et al., 2019;Allameh, 2018). Todo et al., (2016) emphasized the importance of social networks ties (i.e. ...
This study investigates the effects of social media use on employees’ social capital and knowledge sharing. A research model is proposed and empirically tested with an online survey study of 288 working professionals using social media at a Saudi Telecom Company. Results reveal that social media use in the workplace positively influence knowledge sharing. The findings contribute to clarify the importance of the different dimensions of Social Capital especially shared vision and trust, and their role in enhancing profitable knowledge sharing practices. This study offers effective and valuable HR policies regarding the use of social media at workplace within the MENA context.
... In order to adapt to climate variability, organizations should adopt resilience strategies and smart technology to monitor and track climate conditions, and develop appropriate procedures to deal with climate challenges and reduce negative impacts (Jansson and Hofmockel, 2020). Polyviou et al. (2020) noted that resilience of internal operations in organizations indicates the organization's ability and well to adapt to potential changes and modify its internal behaviors and practices in order to ensure interaction and integration with new challenges. Marcucci et al. (2022) emphasized that the resilience of internal operations gives the organization the advantage of dealing with sudden changes and new requirements of customers. ...
This study investigates the role of smart business in increasing the resilience of internal operations to climate change in the Jordanian pharmaceutical manufacturing sector. Drawing on the Business Continuity Management (BCM) theory, the study examines the impact of five dimensions of smart business (climate risk assessment, sustainable resource management, supply chain resilience, climate adaptation plans, and data-driven decisionmaking) on organizational resilience. A quantitative approach was employed, using a questionnaire survey of 317 production managers, operations managers, and manufacturing managers in Jordanian pharmaceutical manufacturing organizations. The results, analyzed using multiple regression and linear regression, reveal that smart business has a significant positive influence on internal operations resilience to climate change, explaining 72.8% of the variance in the dependent variable. Data-driven decision-making emerged as the most influential dimension, followed by climate adaptation plans and climate risk assessment. The findings highlight the importance of adopting smart business models and techniques to enhance organizational resilience to climate change, particularly in the pharmaceutical manufacturing sector. The study contributes to the limited research on smart business and resilience in this context and offers practical insights for managers seeking to improve their organizations' ability to withstand climate-related disruptions. Limitations and directions for future research are discussed.
... Although acknowledged for their incredible speed and agility, SMEs have exhibited exceptional resilience, successfully withstanding and recuperating from crises by restructuring their operations and adopting new strategies in recent decades (Roffia & Dabić, 2024). While numerous studies on resilience have been undertaken in large companies, research on smaller enterprises is insufficient (Battisti & Deakins, 2017;Conz & Magnani, 2020a, b;Linnenluecke, 2017;Polyviou et al., 2020). While certain insights from resilience studies on large enterprises can be directly relevant to SMEs (Ates & Bititci, 2011), the significance of organizational resilience has been demonstrated to differ according to firm size (Sullivan-Taylor & Branicki, 2011). ...
This research conceptualizes and validates a model focusing on the interconnection between environmental management accounting practices and strategic resilience in small and medium enterprises (SMEs). Additionally, it also pursues to investigate the mediation mechanism of management of green innovation complexity on the linkage between environmental management accounting practices and strategic resilience. Through large-scale response data collected from a convenience and snowball sample of 723 informants within SMEs, structural equation modeling was used to investigate the hypothesized interconnections between the aforementioned components. The obtained outcome analyses highlighted significant and positive associations between the proposed constructs in terms of significance and effect size.
... Given their frequency and severity, supply (chain) disruptions are a significant managerial concern (Bode and Macdonald 2017;Polyviou, Croxton, and Knemeyer 2020). Supply disruptions have been defined as 'unplanned and unanticipated events that disrupt the normal flow of goods and materials within a supply chain [. . . ...
... Tarafdar et al. (2017) suggest that ASCS, when executed through specific supply chain practices, can improve firm performance. To understand the "black box" between ASCS and innovation performance, recent research has focused on the social capital embedded within networks, through which firms can access necessary resources for entrepreneurial and agile activities (Zhang et al. 2020;Polyviou et al. 2019). Existing studies identify two governance mechanisms that enhance inter-organizational coordination: contractual governance and relational governance. ...
Based on the Strategy-Structure-Performance (SSP) framework and Organizational Information Processing Theory (OIPT), this study examines how relational governance (RG) mediates the relationship between agile supply chain strategy (ASCS) and ambidextrous innovation performance (including exploratory innovation performance (EXIP) and exploitative innovation performance (EIIP)). Additionally, it investigates the moderating role of information technology capabilities (ITC) in this relationship. We conducted an empirical analysis using data from 208 Chinese manufacturing companies, employing hierarchical regression analysis and structural equation modeling (SEM) to test our hypotheses. Our findings indicate that ASCS influences firm innovation performance indirectly through relational governance mechanisms. Interestingly, contrary to our initial expectations, we found that higher innovation performance occurs when relational capability and technical capability (ITC) act as substitutes rather than complements.
... How companies ensure resilience is a matter of debate. Antecedents of resilience in the literature include organizational capabilities, flexibility (Iftikhar et al., 2021), process integration (Li et al., 2022), resources and capabilities of top management (Wall & Bellamy, 2019;Calabrò et al., 2021), innovation (Gupta, 2023;Parast et al., 2019;Akgün & Keskin, 2014), social, financial, and human capital (Brewton et al., 2010;Polyviou et al., 2020), dynamic capabilities (Sabahi & Parast, 2020;Dovbischuk, 2022), knowledge (Orlando et al., 2022), competitive strategies (Acquaah et al., 2011), and environmental dynamism (Kyrdado et al., 2023). ...
Covid-19 gibi büyük şok dönemlerinde firmalar için en önemli durum hayatta kalmak olabilir. Firmaların bu tür dönemlerde hayatta kalmasını sağlayan biz dizi faktör bulunmaktadır. Bu faktörlerden önce çıkanlardan birisi dayanıklılıktır. Bu araştırmada firmaların Covid-19 sonrasında dayanıklılıklarını dinamik yetenekler açısından incelenmektedir. Araştırmanın amacı; firmaların dinamik yeteneklerinin covid-19 sonrasında iyileşmeye etkisinde sağlamlığın rolünün incelenmesidir. Araştırma İstanbul ilindeki seçili sektörlerdeki 433 beyaz yakalı çalışanların katılımı ile gerçekleştirilmiştir. Araştırma bulgularına göre firmaların dinamik yetenekleri onların sağlamlıklarını ve iyileşme seviyelerini arttırmaktadır. Ayrıca sağlamlık firmanın iyileşmesini de arttırmaktadır. Son olarak dinamik yeteneklerin iyileşmeyi sağlamlık üzerinden etkilediği tespit edilmiştir. Araştırma, dinamik yetenekleri dayanıklılık literatürüne bağlamak, sağlamlık ile iyileşme arasında ilişki kurmak ve şok dönemlerinde faaliyetleri devam ettirme açısından bilgiler sunmaktadır. Araştırma sonunda pratik ve teorik açıdan öneriler sunulmuştur.
... As the technological complexity increases, the downstream flexibility exhibits a stronger mediation effect on EU-FP knot. Besides, we found consistent but readily distinguishable moderated mediation effects for the system flexibility and the upstream flexibility, which is also adequately supported by previous academic inquiries such as Yeniyurt et al. (2019) and Polyviou et al. (2019). ...
Whereas the general undertone of environmental uncertainty might feel minacious, it is not always an effing contingency. It might at times lead to the prudent concurrences like supply chain flexibility incrementing. While making appeals to the contingency theory, strategic alignment theory, and the dynamic capability view, this paper elaborates upon the instrumentality of three key facets of supply chain flexibility in enabling firms to secure the much-needed strategic fit in the face of an ever-accelerating environmental uncertainty, to keep performing well. A regression-based approach involving a sample of 280 Thai firms reveals that environmental uncertainty flickers the downstream, system and upstream types of supply chain flexibility that significantly mediate the environmental uncertainty-firm performance association. It has also been found that mediating role of these three constituents of supply chain flexibility swells with rising levels of technological complexity. The paper not enriches existing body of knowledge by exploring the performance-enhancing effects of different forms of supply chain flexibility under varying permutations of technological complexity, but also offers some useful insights on how supply chain flexibility, as a noticeable dynamic capability, could be modulated to yield an effective adaptive response to the organizational crises stemming from environmental uncertainties.
... External SC involves a set of relationships that facilitates connections with multiple agents, such as suppliers, competitors, customers, NGOs, and public administration, all of which leads the firm to have access to potential valuable resources (e.g., knowledge and support) that can help organizations adopt and advance sustainable practices, enhance their corporate social responsibility efforts, and contribute to more responsible and ethical business conduct (Alghababsheh & Gallear, 2021). Internal SC instead boosts resilience, as noted by Polyviou et al. (2020), and involves the connections or relationships between individuals or groups within an organization, fostering unity and making it easier to work towards shared objectives. Either of these two resources can help SMEs embrace CE practices more easily, as described below. ...
This study addresses the challenges faced by small‐ and medium‐sized enterprises (SMEs) in undertaking sustainability projects due to limited resources and explores the factors influencing SMEs' adoption of circular economy (CE) practices, an area under‐researched in literature. Analysing data from 205 SMEs in Spain's forest bioeconomy sector using fuzzy sets (fs/QCA), the study finds that internal and external social capital, coupled with adaptive capacity, are crucial influences, particularly when SMEs exhibit an entrepreneurial culture. Conversely, if SMEs do not have an entrepreneurial orientation or the environment is not pro‐sustainable, these three characteristics may lead to low CE adoption. Thus, the study emphasizes SMEs' imperative to cultivate social capital, enhance adaptive capacity, and embrace innovation and risk‐taking to leverage internal and external resources and meet environmental demands, thereby reducing costs and time in adopting CE practices. Additionally, it underscores policymakers' pivotal role in fostering a pro‐sustainable environment, being critical for SME engagement in CE practices.
... In their studies, Scholten et al. (2019) suggested specific learning mechanisms to foster the resilience of supply chains. The study by Polyviou et al. (2020) aims to investigate the tools or skills that help medium-sized businesses be resilient, specifically to prevent and recover from supply chain interruptions. The effectiveness of the most well-known practices to improve resilience (flexibility, agility, redundancy, and collaboration) in reducing each type of supply chain disruption (demand, supply, process, control, and environmental disruptions) is examined through a systematic review of the literature by Shekarian et al. (2021). ...
... In other words, one of the key concepts that SCF enlarges SCR is to improve cash flow, manage and minimize such financing risks, as well as provide the flexibility needed to prepare for adverse event occurrences, responses, and recoveries. This points to the fact that SCF should be integrated with other supply chain management practices in designing as well as improving sustaining supply chains as concluded by other scholars (Polyviou et al., 2020;Yuan & Li, 2022). Overall, the negative correlation between SCD and SCF for resilience underscores the complexity entailed in the handling of financial flows during disruptive circumstances. ...
This paper fills a gap in the current stream of literature
by empirically investigating the impact of SCF on achieving SCR. The novelty of this study
lies in integrating the antecedents and consequences of SCF adoption into a single
framework.
... In other words, one of the key concepts that SCF enlarges SCR is to improve cash flow, manage and minimize such financing risks, as well as provide the flexibility needed to prepare for adverse event occurrences, responses, and recoveries. This points to the fact that SCF should be integrated with other supply chain management practices in designing as well as improving sustaining supply chains as concluded by other scholars (Polyviou et al., 2020;Yuan & Li, 2022). Overall, the negative correlation between SCD and SCF for resilience underscores the complexity entailed in the handling of financial flows during disruptive circumstances. ...
... Artificial intelligence can easily navigate the complex web of supply chain dynamics because it has sophisticated algorithms and the ability to learn through machine learning. Recent research on artificial intelligence in supply chain management (SCM), such as the work done by Polyviou et al. (2020), demonstrates that it can identify hidden patterns within extensive supply chain networks and proactively mitigate disruptions. In addition, the inherent adaptability of artificial intelligence makes it possible to perform real-time recalibrations, which provides supply chains with a robust shield against unforeseeable challenges, which is supported by the findings of Wamba et al. (2020). ...
The emergence of Industry 5.0 has ushered in a new era of industrial transformation characterized by the integration of physical and digital systems. In this dynamic environment, the role of artificial intelligence (AI) in supply chain management has become paramount. This research paper explores the impact of AI-driven imperatives on supply chain resilience and sustainability in Industry 5.0. Using a combination of probability analysis (PA), Bayesian-BWM (B-BWM), and Pareto analysis, we identify key AI-driven strategies for enhancing supply chain operations in the ready-made garment (RMG) and footwear sectors in China. The study highlights the importance of continuous monitoring of supply chain operations via the Internet of Things (IoT), adopting a circular production and packaging (CPP) model, and establishing a digital supply chain replica. These strategies improve resilience and contribute to environmental and societal outcomes. Automation and robust cybersecurity for data handling are crucial in the context of Industry 5.0, as they enhance production adaptability and data security. Also, streamlining inventory via RFID technology and harnessing AI to improve workforce safety and operational flow are essential measures. Comprehensive data analysis and forward-looking predictions through AI-driven big data analytics provide insights into consumer demand and energy consumption, ensuring efficient supply chain management. Lastly, while promising, blockchain integration poses challenges in terms of investment and regulatory compliance. However, it is important to consider the ethical implications and regulatory frameworks associated with AI deployment, as well as the need for education and training to bridge the digital gap. Collaboration between governments, industries, and educational institutions is essential to establish a comprehensive Industry 15.0 that benefits all segments of society. This research sheds light on the transformative potential of AI-driven supply chain management in Industry 5.0 and underscores the importance of addressing challenges to maximize its benefits.
... These nodes may face challenges securing resources, forming strategic partnerships, or accessing backup options during disruptions (Zhao, Zuo, and Blackhurst 2019). Furthermore, these nodes may impose unnecessary costs on the SC without contributing significantly to its overall performance; they can drain resources, potentially hindering the SC's ability to respond to disruptions effectively (Polyviou, Croxton, and Michael Knemeyer 2020). However, the role of these nodes should not be underestimated, as even seemingly minor components can become critical under certain circumstances. ...
Supply chain (SC) resiliency and risk management have garnered increasing attention recently. While several studies have explored the use of scale-free network models to design and optimise SC networks, there remains a lack of a generalised stress-testing method that can be applied to various types and sizes of SCs. To address this, we propose a novel approach to assess the resiliency of scale-free SC networks based on entropy measurements. By considering various sources of disruptions, including demand fluctuations, capacity constraints, and transportation disruptions, we create a stress test that measures the network's resiliency. Our method categorises the SC into plants, ports, and customers and analyses the impact of disruptions on individual nodes within similar categories. We utilise real-world SC logistics data and map it into a scale-free network representation. By calculating the global vulnerability of the entire SC network and the localised impact of node vulnerability, we gain insights into how disruptions propagate and affect interconnected nodes. We use value-at-risk (VaR) and conditional-VaR (CVaR) to identify high-risk nodes, highlighting nodes at risk of extreme performance fluctuations or failures. The analytical results have led to developing six propositions, which serve as references for practitioners and help generalise the findings.
... While SMEs are considered more timely and flexible in responding to sudden situations [8,9], the intensity of the COVID-19 pandemic, along with unprecedented mobility restriction policies, has severely disrupted established business models (BMs), and novel studies are needed to better comprehend the utility of BMI in times of economic stagnation. However, Chinese SMEs are susceptible to outside interference because of their insufficient capital reserves, small size, poor access to credit, and low access to financial capital [10,11]. Despite their apparent sensitivities, SMEs may be in a particularly dangerous position in times of sustained crises of unprecedented magnitude and embargo policies fraught with uncertainty, making it difficult for them to engage in BMIs when their original BMs become ineffective, which may require unique strategies, processes, and competencies to be explored. ...
As a response to the damage caused by the spread of COVID-19, the Chinese government has implemented severe quarantine measures that have greatly affected the operational patterns of small and medium-sized enterprises (SMEs). This paper explores the critical role of dynamic capabilities (DCs) in helping Chinese SMEs manage crises, adjust their business strategies, and mitigate the uncertainty caused by the epidemic. Although the importance of DCs in promoting organizational resilience is well recognized, academic research on their specific contributions to business model innovation (BMI) and SME performance improvement during crises remains scarce. Our study fills this gap by pioneering the development and empirical testing of a microintegrated mediation model linking DCs, BMI and organizational performance. By surveying 257 Chinese SMEs severely affected by a pandemic, we verify our hypotheses using partial least squares structural equation modeling (PLS-SEM). Our results strongly show a positive relationship between DCs and BMI and SME performance. In addition, we found that BMI plays a partial mediating role in the interrelationship between DCs and SME performance. Our findings clarify the critical role of BMI as a channel through which SMEs’ DCs can be transformed into higher performance in the face of sudden crises. Thus, our results not only contribute to the broader discussion of strategic management and organizational theory but also provide theoretical and practical insights into the mechanisms by which SMEs can increase their flexibility and resilience in a crisis. Thus, our results not only contribute to the broader discussion of strategic management and organizational theory but also provide theoretical and practical insights into the mechanisms by which SMEs can increase their flexibility and resilience in a crisis. Importantly, this study suggests policy and market strategies that can support SMEs in leveraging DCs and BMI for sustained performance, thereby contributing valuable insights for policymakers and business leaders aiming to fortify economic stability and growth in the face of global health emergencies.
Purpose
Grounded in the knowledge-based view and dynamic capabilities theory, this paper examines how knowledge reserves (intellectual capital) and knowledge flows (supply chain knowledge sharing) impact supply chain resilience from a knowledge perspective.
Design/methodology/approach
Data for this study were collected from 241 Chinese firms. Empirical analysis was conducted to examine the impact of intellectual capital and supply chain knowledge sharing on supply chain resilience as well as the influence of intellectual capital on supply chain knowledge sharing.
Findings
Empirical results indicate a positive relationship between intellectual capital and supply chain resilience. Similarly, supply chain knowledge sharing is positively associated with supply chain resilience. The findings further reveal a positive relationship between intellectual capital and supply chain knowledge sharing.
Research limitations/implications
This study is based on cross-sectional data from China to test the hypotheses. Future research could employ longitudinal studies and expand the analysis to other countries and regions.
Practical implications
The results suggest that companies should enhance their intellectual capital and levels of supply chain knowledge sharing to improve knowledge reserves and knowledge flows, thereby strengthening supply chain resilience.
Originality/value
This study addresses the research questions from a knowledge-based perspective, extending the application of the knowledge-based view and dynamic capabilities theory within supply chain management. The findings deepen the understanding of how knowledge reserves and flows impact supply chain resilience and provide practical insights for companies and supply chain managers.
This chapter examines how localization in clusters enhances firms’ resilience to external shocks, focusing on resilience as a firm-level capability. Using the Global Value Chain (GVC) disruptions caused by the COVID-19 pandemic as a case study, we analyze the responses of small and medium-sized enterprises (SMEs) in a Spanish textile cluster. Through a multiple-case, we explore the resources, capabilities, strategies, and cluster conditions that shaped firms’ resilience. Our findings reveal that the cluster’s unique characteristics, especially institutional and local collective actors, enhanced SMEs’ resources and organizational processes, fostering their resilience and enabling an effective response to the pandemic. This response involved reorganizing to produce sanitary textiles, which led to performance improvements and a shift in mentality towards prioritizing investments, collaboration, and innovation. This chapter presents a resilience model that promotes SMEs’ competitiveness within a cluster context.
This article conducts an in‐depth review of the existing literature on network evolution, with an emphasis on understanding how supply chain networks change and evolve. This review has identified a total of 1148 articles in the area of network evolution, comprising 120 articles from business literature and 1028 articles from non‐business literature. Adopting a structured approach, we provide a roadmap for supply chain network evolution (SCNE) to systematically build a multidimensional understanding of SCNE and bridge the gap between theoretical underpinnings and research methods useful to investigate SCNE. We first broaden the scope to identify insights on dynamic network evolution from a wider array of disciplines. Next, we categorize the drivers of SCNE identified within the business literature into exogenous and endogenous factors. We then synthesize theoretical frameworks that lay the groundwork for future research directions proposed in the context of these frameworks. Finally, we outline contemporary methodologies for studying network evolution and evaluate their relevance and application to the supply chain management (SCM) field. Collectively, this roadmap paves the way for a deeper, interdisciplinary understanding of SCNE and outlines a future research agenda, providing a forward‐looking path for supply chain researchers to explore SCNE.
Supply chain management (SCM) research and entrepreneurship research rarely overlap, which is unfortunate because incorporating SCM thinking may be a key element enabling an entrepreneurial firm to succeed at becoming a long‐term, profitable entity. The entrepreneurial process occurs in three distinct, overlapping, and iterative phases: identification, evaluation, and exploitation. Often, SCM is an afterthought for entrepreneurs, occurring only in the final phase of the entrepreneurial process. This article makes the case for an earlier focus on SCM within the entrepreneurship process. Specifically, we outline how an entrepreneur's supply chain orientation (SCO) may be especially important in the opportunity evaluation phase where Lean Startup processes take place. SCO may enable entrepreneurs to make more accurate assessments and more efficient allocation of limited capital. SCO may lead an entrepreneur to be more aware of how planning, sourcing and production, and logistics may impact the attractiveness of a given opportunity and may facilitate a more accurate evaluation of opportunities, as well as value co‐creation with potential supply chain partners. The result would be a more efficient entrepreneurial process with less waste in terms of time and resources and more value from incorporating supply chain partners in evaluation decisions.
This study explores the adoption of digital marketing strategies among Micro, Small, and Medium Enterprises (MSMEs) in Makassar, Indonesia, focusing on their phased approach, responses to market pressures, and the role of organizational readiness in digital transformation. Utilizing a qualitative case study design, in-depth interviews and observations were conducted with five well-established culinary MSMEs. Thematic analysis and manual coding were used to identify key themes and validate findings on their digital marketing adoption journey. The findings reveal a staged adoption process, beginning with basic social media use and evolving toward e-commerce platforms, targeted advertising, and customer relationship management (CRM) systems. Market pressures—such as heightened competition and shifting consumer preferences—were key drivers, though adoption levels varied. For instance, while 80% of respondents had adopted e-commerce platforms, others remained limited to social media engagement due to lower organizational readiness. Organizational readiness, encompassing technology infrastructure, financial capacity, and leadership attitudes, was crucial for effective digital adoption. The study highlights the need for tailored support, including digital literacy training, financial assistance, and an innovation-friendly culture, to enhance MSME competitiveness in the digital economy. This research contributes to the broader discourse on digital marketing adoption by providing strategic recommendations to support MSME growth in a digital landscape.
Purpose
This paper proposes an evaluation approach for analyzing excellence management practices at a regional level based on experts’ assessment.
Design/methodology/approach
Using the National Quality Foundation’s Management Excellence Model (MEG), 19 management excellence practices were identified and tailored for small- and medium-sized industries (SMIs). Data were collected through a survey with 25 experts who assessed these practices in the context of Brazilian manufacturing SMIs. The analysis utilized Fuzzy TOPSIS Class (FTC), and a sensitivity analysis was also conducted.
Findings
The proposed evaluation approach integrates a reference model for management excellence (MEG), an analysis method incorporating uncertainty (FTC), and results that enable decision-makers to make well-informed choices. Of the 19 practices assessed, 15 were classified as “unacceptable,” while four were rated as “regular,” and none as “expected.” Key challenges relate to practices in information security, knowledge, innovation and change management.
Research limitations/implications
The study’s primary limitation is the use of non-probabilistic sampling and its focus on the Brazilian context. However, the extensive knowledge and experience of the experts in manufacturing SMIs and the need for studies addressing specific regional contexts should be noted.
Practical implications
The findings reveal a significant gap between ideal management practices and the actual state of SMIs, especially in emerging markets.
Originality/value
This research introduces a novel approach that combines a reference model tailored for SMIs with a multicriteria decision-making method, offering valuable insights for decision-makers and guiding future research.
The literature on supply chain complexity (SCC) has traditionally focused on its negative aspects, such as increased vulnerability to disruption. However, this study takes a different perspective, exploring the potential for SCC to trigger positive outcomes like enhanced supply chain viability (SCV). Informed by the dynamic capabilities view, we delve into the relationship between SCC and SCV, and how this is influenced by strategic information flow (SIF) and network capability (NC). Survey data from 242 firms is collected to examine hypothesized relationships. The data were analysed using the partial least squares (PLS) structural equation modelling (SEM) technique. The findings reveal that exposure to SCC significantly indirectly influences SCV via both SIF and NC. Investigation of the serial mediation pathway (SCC → SIF → NC → SCV) indicates a partial mediation effect. This suggests that, while both mediators (SIF and NC) can independently enhance SCV, their combined sequential influence can synergistically offer additional advantages to achieving SCV. These findings provide a new perspective on SCC and guide managers and policymakers in establishing SCV in the face of SCC. For example, our findings suggest that investing in both NC and SIF enhances SCV more effectively than investing in either one alone.
This study investigates the connection between social capital and resilience by conducting a bibliometric analysis of the relevant literature between 1994 and 2024. Social capital, comprising networks, norms, and beliefs that foster coordination and cooperation, and resilience, which refers to the capacity of individuals and communities to adjust and recuperate from stressors and calamities, are two notions gaining prominence in diverse fields of study. Data from 1697 documents showed a significant increase in annual publications, with an average growth of 17.65%. Scientific articles dominate the document types and demonstrate high research productivity. Principal researchers such as Aldrich DP, Liu Y, and Fraser T have contributed significantly to this field, while journals such as the "International Journal of Disaster Risk Reduction" and "Sustainability (Switzerland)" have become the main sources of publications. The research investigation uncovered themes, such as adaptability, psychological and social resilience, and sustainability, as the main focus areas. The thematic map illustrates that "social capital" and "resilience" are the cornerstone of the research, and the topic trends reveal a substantial level of interest in the pandemic, mental health, and disaster resilience. Co-occurrence and cocitation networks confirm the pivotal role of social capital in various contexts of resilience and adjustment. This study has benefited greatly from significant international collaborations between countries such as the United States, Europe, and Asia. This study highlights the significance of social capital and resilience in tackling global challenges, including climate change, natural disasters, economic crises, and COVID-19 pandemic. The practical applications of this research involve the creation of policies and interventions that enhance social networks and the adaptive capabilities of communities. Future research is encouraged to broaden its geographical and socioeconomic range, adopt an interdisciplinary methodology, and involve communities in a participatory manner to enhance the relevance and sustainability of the research outcomes
Micro, Small, and Medium Enterprises (MSMEs) have a very important role in socio-economic development in Indonesia. But the problem that often occurs is its vulnerability to changes that result in losses. This is because MSMEs have limited resources. In fact, MSMEs have proven to be a safety valve for the national economy and are able to survive and become economic drivers, especially during times of economic crisis. The results showed that the resilience of MSMEs in terms of their competitive advantage is easily replicated and replaced at any time, depending on their ability to manage and run a business. So it takes resources and capabilities to achieve core compatibility. The resilience of MSMEs in facing uncertain crisis conditions must be supported by the application of Islamic Entrepreneurship, this is because resilience is influenced by two factors, namely Internal and External. These internal factors cannot be eliminated by humans in running life, namely spirituality, faith, and optimism. Because sharia refers to the command of Allah Swt.
Purpose
The study aims to explore dynamic capabilities such as innovation, entrepreneurial leadership, absorptive capability, and the dimension of entrepreneurial orientation in the handicraft sector to enhance supply chain resilience and innovation during unprecedented times. This study also used innovation as a mediating construct and supply chain orientation as a moderating construct.
Design/methodology/approach
We gathered data from the handicraft sector in the Uttar Pradesh (UP) in India using a pretested questionnaire. We used variance-based partial least squares structural equation modelling (PLS-SEM) to test our research hypotheses.
Findings
Our study indicates that to enhance innovation and improve supply chain resilience, firms should focus on developing dynamic capabilities such as entrepreneurial leadership, absorptive capacity, artificial intelligence (AI), innovativeness, risk-taking ability, and protectiveness. The study highlights the significant role of dynamic capabilities in the handicraft sector during times of crisis, enabling innovation and resilience to risk.
Practical implications
The study highlights the significant role of dynamic capabilities in the handicraft sector during times of crisis, enabling innovation and resilience to risk.
Originality/value
This study provides significant insights into the current understanding of dynamic capability theory and supply chain orientation and expands upon the existing literature in this field. It comprehensively analyses the latest research and advances knowledge in this area.
Purpose
In today’s complex and globalised business setting, Australian clothing retailers are ever more vulnerable to supply chain disruptions. Supply chain resilience reduces the effect of a disruption, which permits the members of a supply chain to respond aptly to disruptive events. This study, hence, aims to uncover the details of how the small and medium-sized enterprises (SMEs) of clothing retailers in Australia build supply chain resilience and what are the major issues experienced by the SMEs while building resilience.
Design/methodology/approach
This study is carried out using a descriptive qualitative research design, and data are collected from semi-structured interviews with key informants from managerial levels within the Australian clothing retailers’ businesses.
Findings
This study identifies five enablers, namely, collaboration, multi-sourcing, visibility, flexibility and information systems, that the SMEs of clothing retailers mostly consider to achieve resilience in the supply chain. This study also finds that SMEs’ capabilities, cost and financing, lack of managerial autonomy and the inability to create redundancy are the key impediments hindering SMEs from attaining the expected level of resilience.
Originality/value
To the best of the author’s knowledge, this study contributes to the body of knowledge by being one of the first empirical studies to explore the SMEs of clothing retailers’ supply chain resilience in the Australian business context, which can add valuable insights for academics and practitioners in guiding supply chain design decisions for the SMEs in other sectors.
Supply chains providing raw materials and distribute finished goods to end customers are extending through many independent companies, and nearly every chain is global. Companies need to consider creating action plans in order to manage the risks arising from the inevitable disruptions that significantly affect business operations and supply chains. These days all the supplier hubs, logistics hubs, and industries concentrated in a specific geographic location. Many companies after Sendai earthquake initiated their backup and contingency plans and many others were in the process of looking for backup supply. Another predictable outcome is that many companies will focus on business continuity planning and will also focus on their vulnerabilities. Businesses should look at how dependent they are on a single geographic region, such as a supplier hub, on a single supply source, and on a single material with an embedded or highly concentrated supply.
There has been considerable academic interest in recent years in supply chain resilience (SCRES). This paper presents a timely review of the available literature on SCRES based on a three-stage systematic search that identified 91 articles/sources. We provide a comprehensive definition of SCRES before strategies proposed for improving resilience are identified and the contributions to the literature are critiqued, e.g. in terms of research method and use of theory. We take stock of the field and identify the most important future research directions. A wide range of strategies for improving resilience are identified, but most attention has been on increasing flexibility, creating redundancy, forming collaborative supply chain relationships and improving supply chain agility. We also find that only limited research has been conducted into choosing and implementing an appropriate set of strategies for improving SCRES. Much of the literature is conceptual, theoretical and normative; the few available empirical studies are mainly cross-sectional and confined to a large firm, developed country context; and, there has been limited use of theory frames to improve understanding. We propose Complex Adaptive Systems (CAS) theory as an appropriate lens for studying SCRES. We demonstrate that SCRES mirrors many characteristics of a CAS - including adaptation and coevolution, non-linearity, self-organisation and emergence - with implications for the direction of both future research and practice.
Various bodies of literature attest to how crises significantly damage the way people relate with one another damage that lasts long past the cessation of those crises. Such relational disturbances are problematic in terms of crisis management theory. If crises are understood to be operationally resolved yet the relational systems that underlie organizations remain disturbed, the crises may not truly be resolved, with implications for ongoing dysfunctional patterns of behavior, organizational vulnerabilities, and longer-term performance problems. The purpose of this article is to conceptualize organizational crises in terms of relational disturbance and crisis management as the repair of such disturbances. We introduce a framework for analyzing the relational health of organizational systems, drawing on family systems theory to help define the dimensions of relational systems. We describe and illustrate the disturbances of relational systems in the context of crises and develop a framework for their repair and transformation. We conclude with implications for theory and research guided by an expanded definition of crisis management that links operational and relational dimensions.
This article contains a theoretical discussion and an empirical test of Stinchcombe's "liability of newness" hypothesis, which assumes higher risks of failure for young organizations compared with old ones. It is shown that this hypothesis is not a good representation of the mortality hazard of West German business organizations. Therefore, we introduce the concept of a "liability of adolescence," which proposes an inverted U-shaped risk pattern. It is shown that mortality, depending on the initial resource endowments of a firm, peaks between one and fifteen years after founding. From this perspective, extended interpretations of the liabilities of smallness and legal form are given. These arguments are well supported by a log-logistic rate model estimated with our data.
We examined how social capital and the power of venture capitalists and founder-CEOs affect IPO firm survival. Using data from 218 U.S. initial public offerings conducted in 1992, we found that average management team tenure and an IPO deal's network embeddedness decreased the likelihood of failure during a firm's first five years as a public entity. Founder-CEO presence at the time of an IPO interacted with CEO ownership to decrease the likelihood of failure, and CEO ownership and venture capitalist ownership concentration also decreased that likelihood.
In today's tightly connected global economy, traditional management practices that rely on “steady-state” conditions are challenged by chaotic external pressures and turbulent change. Just in the last few years, the world has experienced a string of catastrophic events, including a global economic meltdown, a volcanic eruption in Iceland, an oil spill in the Gulf of Mexico, a disastrous tsunami and power blackout in Japan, and political upheavals in Africa and the Middle East. Managing the risk of an uncertain future is a challenge that requires resilience—the ability to survive, adapt, and grow in the face of turbulent change. This research develops a measurement tool titled the Supply Chain Resilience Assessment and Management (SCRAM™). Data gathered from seven global manufacturing and service firms are used to validate SCRAM™, using qualitative methodology with 1,369 empirical items from focus groups reviewing 14 recent disruptions. Critical linkages are uncovered between the inherent vulnerability factors and controllable capability factors. Through mixed-method triangulation, this research identified 311 specific linkages that can be used to guide a resilience improvement process. Pilot testing suggests a correlation between increased resilience and improved supply chain performance.
Purpose
– This study aims to combine theory and practice to develop an integrated supply chain resilience framework by investigating the inter-dependencies between the strategic literature based concept of supply chain resilience and operational practitioner based disaster management processes.
Design/methodology/approach
– Utilising an in-depth qualitative case of a collaborative agency, this study identifies best practices within disaster management for insights on the operationalisation of supply chain resilience.
Findings
– The empirical data leads to the development of an integrated supply chain resilience framework capturing the interplay of disaster management processes and capabilities required to build supply chain resilience. The critical importance of mitigation processes in building supply chain resilience is highlighted.
Practical implications
– The generic supply chain resilience framework represents a valuable guide for managers when directing resources and planning for building the capabilities required in each phase of disaster management, while remaining strategically focused. The value of the framework is demonstrated by a retrospective analysis of aid operations in response to Hurricane Katrina.
Originality/value
– The study's results are the first to bridge theory and practice on supply chain resilience. By utilising the unique humanitarian aid disaster supply chain management context, a two-way knowledge and learning flow between humanitarian and commercial organisations is established.
For all its richness and potential for discovery, qualitative research has been critiqued as too often lacking in scholarly rigor. The authors summarize a systematic approach to new concept development and grounded theory articulation that is designed to bring “qualitative rigor” to the conduct and presentation of inductive research.
We report on the findings of an inductive, interpretive case study of organizational identity change in the spin-off of a Fortune 100 company's top-performing organizational unit into an independent organization. We examined the processes by which the labels and meanings associated with the organization's identity underwent changes during and after the spin-off, as well as how the organization responded to these changes. The emergent model of identity change revolved around a collective state of identity ambiguity, the details of which provide insight into processes whereby organizational identity change can occur. Additionally, our findings revealed previously unreported aspects of organizational change, including organization members' collective experience of “change overload” and the presence of temporal identity discrepancies in the emergence of the identity ambiguity.
Project failures are common. We theorized and found that although time heals wounds (reduces the negative emotions from project failure), it heals differently depending on the strength of individuals' specific coping orientations. Further, wounds are shallower for those who perceive that their organization normalizes failure. We conjointly consider learning from failure and affective commitment to an organization as determining how individuals move forward from project failure. Findings suggest that studies framing moving forward solely as learning from failure will likely overstate the benefits of a "loss orientation" and understate the benefits of both a "restoration" and an "oscillation orientation."
We build on an emerging strategy literature that views the firm as a bundle of resources and capabilities, and examine conditions that contribute to the realization of sustainable economic rents. Because of (1) resource-market imperfections and (2) discretionary managerial decisions about resource development and deployment, we expect firms to differ (in and out of equilibrium) in the resources and capabilities they control. This asymmetry in turn can be a source of sustainable economic rent. The paper focuses on the linkages between the industry analysis framework, the resource-based view of the firm, behavioral decision biases and organizational implementation issues. It connects the concept of Strategic Industry Factors at the market level with the notion of Strategic Assets at the firm level. Organizational rent is shown to stem from imperfect and discretionary decisions to develop and deploy selected resources and capabilities, made by boundedly rational managers facing high uncertainty, complexity, and intrafirm conflict.
The ability of business owners/managers to think strategically in the midst of a crisis is a key factor in an organisation's long-term survival, but at present there is very little advice available on how to do this most effectively. To be resilient in times of crises, organisations need to navigate a set of apparent contradictions that juxtapose effective planning with adaptability to changing circumstances including: (1) have leaders able to inspire people with a sense of hope and direction whilst being grounded about the situation they are in, (2) have an organisational culture that values disciplined planning whilst fostering innovation, (3) plan and make decisions carefully and structured effectively yet be responsive and bold, and (4) have teams able to recognise patterns and integrate information to make sense of a chaotic situation, yet be alert to subtle changes as the situation evolves. In this article, we propose a model for crisis strategic planning to help organisations understand their natural tendencies and how these affect the type of resilience the organisation is able to achieve. This article also presents three case studies of small New Zealand organisations coping with the aftermath of crisis to demonstrate how the model can be applied.
Why, how, and under what conditions do firms respond to supply chain disruptions? These are important questions, given that firms around the world are increasingly exposed to disruptions that impede their supply chain relationships and associated operations. This study applies information processing and resource dependence perspectives to identify the repertoire of strategic responses to supply chain disruptions and to devise and test a model that explains the occurrence of the alternative responses. The findings suggest that these responses are shaped by the “stability motive” and by “interpretative postures,” which evolve from past experiences.
In today's uncertain and turbulent markets, supply chain vulnerability has become an issue of significance for many companies. As supply chains become more complex as a result of global sourcing and the continued trend to 'leaning-down', supply chain risk increases. The challenge to business today is to manage and mitigate that risk through creating more resilient supply chains. Supply chain managers strive to achieve the ideals of fully integrated efficient and effective supply chains, capable of creating and sustaining competitive advantage [1]. To this end they must balance downward cost pressures and the need for efficiency, with effective means to manage the demands of market-driven service requirements and the known risks of routine supply chain failures. Better management and control of internal processes together with more open information flows within and between organisations can do much to help. However, in an age of lengthening supply chains serving globe-spanning operations, recent events around the world have provided frequent reminders that we live in an unpredictable and changing world [2]. Natural disasters, industrial disputes, terrorism, not to mention the spectre of war in the Middle East, have all resulted in serious disruptions to supply chain activities. In these situations 'business as usual' is often not an option. Modern commercial supply chains are in fact dynamic networks of interconnected firms and industries [3]. No organisation is an island and even the most carefully controlled processes are still only as good as the links and nodes that support them.
When major disruptions occur, many supply chains tend to break down and take a long time to recover. However, not only can some supply chains continue to function smoothly, they also continue to satisfy their customers before and after a major disruption. Some key differentiators of these supply chains are cost-effective and time-efficient strategies. In this paper, certain "robust" strategies are presented that possess two properties. First, these strategies will enable a supply chain to manage the inherent fluctuations efficiently regardless of the occurrence of major disruptions. Second, these strategies will make a supply chain become more resilient in the face of major disruptions. While there are costs for implementing these strategies, they provide additional selling points for acquiring and retaining apprehensive customers before and after a major disruption.
Industrial districts and regional clusters depend on the networks that arise from reciprocal linkages among co-located organizations, while physical proximity among firms can alter the nature of information and resource flows through networks. We consider the joint effects of geographic propinquity and network position on organizational innovation using negative binomial count models of patenting activity for U.S.-based life science firms in industrial districts and regional clusters across a 12-year time period, 1988-1999. We find evidence that regional agglomeration and network centrality exert complementary, but contingent, influences on organizational innovation. Results show that in the high velocity, research-intensive field of biotechnology, geographic and network positions have both independent and contingent effects on organizational innovation. The influence of centrality in local, physically co-located partner networks depends on the extent to which firms are also embedded in a global network comprising physically distant partners. Such global centrality, however, alters how proximity to two important classes of organization - other biotechnology firms and public sector research organizations, such as universities, research institutes, and teaching hospitals - influences innovation. Regional agglomeration shapes the character of information and resource flows through networks, while much of what makes industrial clusters region-like involves the structure of their internal networks. We conclude that network effects persist both independently and interdependently with geographic variables, and regional characteristics influence the degree to which centrality enhances innovation.
The relationship between the social composition of top management teams and innovation adoptions was examined in a sample of 199 banks. The following characteristics of top management teams were examined: average age, average tenure in the firm, education level, and heterogeneity with respect to age, tenure, educational background, and functional background. In addition, the effects of bank size, location (state of operation), and team size were assessed. Results indicate that more innovative banks are managed by more educated teams who are diverse with respect to their functional areas of expertise. These relationships remain significant when organizational size, team size, and location are controlled for.
The paper presents evidence in support of a particular growth process of firms that is consistent with a missing middle in the size distribution of manufacturing firms in African countries. Firm growth is explained by size and age effects as a result of efficiency exploiting through scale enlargements and learning, but is strongly moderated by reputation effects and formal legitimation which facilitate access to output markets and resources. Complementing the model with data on growth obstacles as perceived by the owners of firms, medium sized firms are found to be strongly hurt by insufficient access to infrastructure and financial services.
One of the main reasons that firms participate in alliances is to learn know‐how and capabilities from their alliance partners. At the same time firms want to protect themselves from the opportunistic behavior of their partner to retain their own core proprietary assets. Most research has generally viewed the achievement of these objectives as mutually exclusive. In contrast, we provide empirical evidence using large‐sample survey data to show that when firms build relational capital in conjunction with an integrative approach to managing conflict, they are able to achieve both objectives simultaneously. Relational capital based on mutual trust and interaction at the individual level between alliance partners creates a basis for learning and know‐how transfer across the exchange interface. At the same time, it curbs opportunistic behavior of alliance partners, thus preventing the leakage of critical know‐how between them. Copyright © 2000 John Wiley & Sons, Ltd.
Purpose
The purpose of this paper is to, first, explore the role of interpersonal relationships between buying and supplying firms in the management of supply chain disruptions (SCDs). Interpersonal connections are proposed as “social lubricants” that can advance the knowledge about conventional interorganizational antecedents of firm resilience. Differentiating between high- and low-complexity manufacturing industries, the study then looks into how managers from these industry clusters can leverage the efficacy of these relationships through the appropriate use of interorganizational governance mechanisms.
Design/methodology/approach
Structural equation modeling is conducted with data collected from 229 manufacturing firms in Austria, Germany and Switzerland. Industry clusters are formed via a Q-sort exercise.
Findings
Results support the assumption of a socially embedded, interpersonal dimension in buyer-supplier relationships that impact organizational-level resilience. It is suggested that investments in interpersonal skills and interpersonal complementarity are significant antecedents of both relational and re-deployable firm resilience. Surprisingly, no support was found for a positive impact of interpersonal information sharing on firm resilience, challenging findings from previous studies on an interorganizational level. Interorganizational governance and industry affiliation each have moderating effects on the performance of the resilience efficacy of interpersonal relationship antecedents, suggesting the existence of an important managerial lever.
Originality/value
Integrating the supply chain and behavioral science literature, this study is the first to investigate the interplay of interpersonal and organizational antecedents and their efficacy in the management of SCDs.
Scholars of the theory of the firm have begun to emphasize the sources and conditions of what has been described as “the organizational advantage,” rather than focus on the causes and consequences of market failure. Typically, researchers see such organizational advantage as accruing from the particular capabilities organizations have for creating and sharing knowledge. In this article we seek to contribute to this body of work by developing the following arguments: (1) social capital facilitates the creation of new intellectual capital; (2) organizations, as institutional settings, are conducive to the development of high levels of social capital; and (3) it is because of their more dense social capital that firms, within certain limits, have an advantage over markets in creating and sharing intellectual capital. We present a model that incorporates this overall argument in the form of a series of hypothesized relationships between different dimensions of social capital and the main mechanisms and processes necessary for the creation of intellectual capital.
The earthquake that hit East Japan in March 2011 caused massive damage. While widespread disruption to global supply chains was predicted, production resumed with remarkable speed. This article describes how resources from the networks of damaged companies were rapidly mobilized and deployed, enabling rapid restoration of production. It uses the concepts of social capital and sensemaking to explain the speed of recovery. Social capital facilitated rapid mobilization, and strategies to build shared mental models permitted effective coordination under complex and rapidly evolving conditions. The ability to mobilize and focus resources is crucial to disaster recovery.
Purpose
– This paper aims to explore how collaboration influences supply chain resilience. Collaborative activities and their underlying mechanisms in relation to visibility, velocity and flexibility are investigated.
Design/methodology/approach
– An exploratory case study consisting of eight buyer–supplier relationships in the food processing industry was conducted.
Findings
– Key findings show how specific collaborative activities (information-sharing, collaborative communication, mutually created knowledge and joint relationship efforts) increase supply chain resilience via increased visibility, velocity and flexibility. Underlying mechanisms and interdependencies of these factors within the supply chain network are identified.
Originality/value
– This is one of the first papers to provide in-depth insights into collaboration as a formative element of resilience in a supply chain setting. A series of propositions explain the specific influence of collaborative activities on supply chain resilience beyond a single company perspective.
A great deal of research has focused on supply chain risk management, but the question “Which supply chain characteristics increase the frequency of supply chain disruptions?” has not received much attention from empirical research. This is a relevant question, because firms seek stability in their operations, and therefore managers need to know how the structure of their supply chains affects the occurrence of disruptions. The present study addresses this issue with a specific focus on upstream (supply-side) supply chain disruptions. Drawing on the literature on supply chain complexity, we devise and test a model that predicts the frequency of supply chain disruptions based on a multi-dimensional conceptualization of upstream supply chain complexity. Not only do the empirical findings suggest that all of the three investigated complexity drivers—horizontal, vertical, and spatial complexity—increase the frequency of disruptions, but also that they interact and amplify each other's effects in a synergistic fashion.
As supply chains become increasingly complex, the management of buyer‐supplier relationships is
essential for achieving superior performance. In order to enhance external collaborative relationships,
many firms are investing in the development of internal relationship management skills. We propose
that the development of internal collaborative process competence (CPC) is an important component
for improving external collaborative relationships through the creation of social capital. Our research
examines the potential for social capital, which is modeled as a second order factor consisting of
structural, cognitive, and relational capital, to mediate the relationship between CPC and operational
performance. Our findings provide insights as to whether internal competence alone is sufficient for
improving the operational performance of the relationship. Based on a dyadic comparison of buyers and
suppliers, we find that investment in internal CPC without building external social capital, does not lead
to any improvement in operational performance. However, investment in CPC is beneficial in cases
where buyers and suppliers have also built a high level of social capital, which, in turn, leads to desired
operational performance for the relationship.
In today’s global business environment, supply chains have increased in both length and complexity. This increase in length and complexity coupled with a focus on improving efficiency, such as lean manufacturing practices, may lead to higher levels of supply chain risk where the likelihood of a disruption severely impacting supply chain performance increases. Resilient supply chains have been touted as a means to reduce the likelihood and severity of supply chain disruptions. However, there is little empirical evidence relative to the factors that contribute to or detract from supply resiliency. Using systems theory and the resource-based view of the firm as the theoretical underpinnings, this study provides an in-depth systematic investigation of supply resiliency. Adopting a theory-building approach based on a multi-industry empirical investigation, this study derives empirical generalizations linking 19 supply chain characteristics to supply resiliency. The study culminates in a framework that could be used to assess the level of resiliency in a supply base. Building on this framework, the study also provides a supply resiliency matrix that can be utilized to classify supply chains, or supply chains segments according to the level of resiliency realized. This article concludes by proposing several future research directions and issues that may be investigated in more detail.
Resilient organizations thrive despite experiencing conditions that are surprising, uncertain, often adverse, and usually unstable. We propose that an organization's capacity for resilience is developed through strategically managing human resources to create competencies among core employees, that when aggregated at the organizational level, make it possible for organizations to achieve the ability to respond in a resilient manner when they experience severe shocks. We begin by reviewing three elements central to developing an organization's capacity for resilience (specific cognitive abilities, behavioral characteristics, and contextual conditions). Next we identify the individual level employee contributions needed to achieve each of these elements. We then explain how HR policies and practices within a strategic human resource management system can influence individual attitudes and behaviors so that when these individual contributions are aggregated at the organizational level through the processes of double interact and attraction–selection–attrition, the organization is more likely to possess a capacity for resilience.
Small business and crisis management research are two established but largely uncoupled domains of study. Given the economic importance and vulnerability of a small businesses, closer attention is needed to understand how their owners think and act in relation to crisis management efforts in the event of business interruptions.This study highlights the relative absence of crisis management research in the small business literature and the absence of a small business focus in the crisis management literature, despite a rising tide of regulation and legislation that requires companies to have crisis/business continuity management arrangements in place. The study examines the understanding of, and resourcing and support for, crisis management using case studies from four UK small businesses. The resulting analysis illuminates four themes; understanding risks, three-dimensional crisis, learning from crisis, and stifled support systems. Furthermore, data suggest that owner-managers may frame risks in two ways — a ‘growth vulnerability paradox’ and the ‘risk elastic’ — while their understanding of crisis is conceptualized using a chronological approach to identify three key areas: crisis threat, crisis response, and crisis impact. The study concludes by asserting the need for a crisis-based view of small business research and proposes an agenda for future study.
Purpose
– The purpose of this research is to explore the resilience domain, which is important in the field of supply chain management; it investigates the effects relational competencies have for resilience and the effect resilience, in turn, has on a supply chain ' s customer value.
Design/methodology/approach
– The research is empirical in nature and employs a confirmatory approach that builds on the relational view as a primary theoretical foundation. It utilizes survey data collected from manufacturing firms from three countries, which is analyzed using structural equation modeling.
Findings
– It is found that communicative and cooperative relationships have a positive effect on resilience, while integration does not have a significant effect. It is also found that improved resilience, obtained by investing in agility and robustness, enhances a supply chain ' s customer value.
Practical implications
– Some findings contrast the expectations derived from theory. Particularly, practitioners can learn that integration has a limited role in enhancing resilience.
Originality/value
– The study distinguishes between a proactive and reactive dimension of resilience: robustness and agility. The relational view serves as the theoretical basis to explain the effects between three types of relational competencies (communication, cooperation, and integration) and the above-mentioned two dimensions of resilience.
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.
Purpose
This paper aims to propose a role interaction model for understanding a supply chain orientation of small and medium scale enterprises (SMEs).
Design/methodology/approach
The paper defines various role players and logic for the quantification of conceptual role model. This process enlists some 13 possible combinations of various roles and defines them on a coordinated geometry of cube. An applicability of proposed logic is demonstrated for a case of XYZ tin‐container manufacturing SME.
Findings
The study provides an identification of various roles, development of role interaction model and its 13 combinations to gain insights into the supply chain management (SCM) issues of SMEs are the major contributions.
Practical implications
The paper proposes a simple, logical and easy‐to‐use approach that could even be understood and applied by SMEs managers with a limited knowledge base.
Originality/value
The contributions of the paper are three‐fold: it reports contemporary literature on supply chain management in SMEs, it develops a conceptual role interaction model; and it demonstrates the application of proposed approach for the real life case example.
Using data collected from multiple respondents in all the business units of a large multinational electronics company, we examined the relationships both among the structural, relational, and cognitive dimensions of social capital and between those dimensions and the patterns of resource exchange and product innovation within the company. Social interaction, a manifestation of the structural dimension of social capital, and trust, a manifestation of its relational dimension, were significantly related to the extent of interunit resource exchange, which in turn had a significant effect on product innovation.
Previous research on organizational citizenship behavior indicates that such behavior is critical for organizational effectiveness, but little theoretical work details how it might contribute to enhanced organizational functioning. Nahapiet and Ghoshal (1998) argue that a firm's social capital comprises a critical source of sustainable organizational advantage. Based on their work, we suggest that citizenship behaviors enhance firm functioning by contributing to the development of social capital in organizations; specifically, citizenship behaviors contribute to the creation of structural, relational, and cognitive forms of social capital.
A small- or medium-sized enterprise (SME) is normally a company that employs about 50–200 people. Because of the globalisation of market and operations, and technological advances, the competition among SMEs has radically increased over the years, and their survival is increasingly dependent on a number of factors including resilience of SMEs to refocus some of their strategies and technologies. In this article, a review of selected literature has been undertaken on some of the SME characteristics and new strategies, techniques and technologies that can provide a competitive advantage and sustainability in the global market and operations. Based on the literature review, a framework has been developed with key factors/enablers that determine the resilience and competitiveness of SMEs. This framework has been empirically studied by collecting data from SMEs. It involves a sample of 40 SMEs in the Southcoast of Massachusetts and provides further insight into the key characteristics associated with resilience and competitiveness of SMEs that are influenced by advances in operations strategies, technology and globalisation. Finally, a detailed summary of findings and conclusions are presented.
This article is a first step towards addressing a gap in the field of organisational resilience research by examining how small and medium enterprises (SME) manage the threat and actuality of extreme events. Pilot research found that the managerial framing of extreme events varied by a range of organisational factors. This finding informed further examination of the contextual nature of the resilience concept. To date, large organisations have been the traditional focus of empirical work and theorising in this area; yet the heterogeneous SME sector makes up approximately 99% of UK industry and routinely operates under conditions of uncertainty. In a comparative study examining UK organisational resilience, it emerged that SME participants had both a distinctive perspective and approach to resilience when compared to participants from larger organisations. This article presents a subset of data from 11 SME decision-makers. The relationship between resilience capabilities, such as flexibility and adaptation, is interrogated in relation to organisational size. The data suggest limitations of applying a one-size-fits-all organisation solution (managerial or policy) to creating resilience. This study forms the basis for survey work examining the extent to which resilience is an organisationally contingent concept in practice.
We examine how social capital dimensions of networks affect the transfer of knowledge between network members. We distinguish among three common network types: intracorporate networks, strategic alliances, and industrial districts. Using a social capital framework, we identify structural, cognitive, and relational dimensions for the three network types. We then link these social capital dimensions to the conditions that facilitate knowledge transfer. In doing so, we propose a set of conditions that promote knowledge transfer for the different network types.
This study investigates the role of organizational structure in facilitating the development of mass customization (MC) capability in various manufacturing settings. Specifically, three dimensions of organizational structure are considered—flatness, centralization, and employee multifunctionality. We model organizational structure as a second-order factor whose value is captured on a mechanistic-organic continuum, where the organic form is characterized by a flat, decentralized structure with a wide use of multifunctional employees. We propose that a positive relationship exists between the organic organizational structure and MC capability. Additionally, building upon contingency theory, we argue that this positive relationship is moderated by mass customizer type—full mass customizers, which customize products at the design or fabrication stage of the production cycle, versus partial customizers, which customize products only at the assembly or delivery stages. Based on a study of 167 manufacturing plants from three industries and eight countries, we find that, for the overall sample, organic structure plays a significant role in enabling firms to pursue MC capability. However, an analysis of full versus partial mass customizers shows that the positive impact of organic structure on MC capability is statistically significant only for full mass customizers, not for partial mass customizers.
Social Capital is created through the patterns of interdependence andsocial interaction that occur within a population, and we attempt to understand the participatory consequences of these patterns relative to the effects of human capital and organizational involvement. The production of social capital in personal networks was examined with the use of social network and participation data from the 1992 American study of the Cross National Election Project. The results suggest that politically relevant social capital (that is, social capital that facilitates political engagement) is generated in personal networks, that it is a by-product of the social interactions with a citizen's discussants, and that increasing levels of politically relevant social capital enhance the likelihood that a citizen will be engaged in politics. Further, the production of politically relevant social capital is a function of the political expertise within an individual's network of relations, the frequency of political interaction within the network, and the size or extensiveness of the network. These results are sustained even while taking account of a person's individual characteristics and organizational involvement. Hence, the consequences of social relations within networks are not readily explained away on the basis of either human capital effects or the effects of organizational engagement.
Supply chain disruptions and the associated operational and financial risks represent the most pressing concern facing firms that compete in today's global marketplace. Extant research has not only confirmed the costly nature of supply chain disruptions but has also contributed relevant insights on such related issues as supply chain risks, vulnerability, resilience, and continuity. In this conceptual note, we focus on a relatively unexplored issue, asking and answering the question of how and why one supply chain disruption would be more severe than another. In doing so, we argue, de facto, that supply chain disruptions are unavoidable and, as a consequence, that all supply chains are inherently risky. Employing a multiple-method, multiple-source empirical research design, we derive novel insights, presented as six propositions that relate the severity of supply chain disruptions (i) to the three supply chain design characteristics of density, complexity, and node criticality and (ii) to the two supply chain mitigation capabilities of recovery and warning. These findings not only augment existing knowledge related to supply chain risk, vulnerability, resilience, and business continuity planning but also call into question the wisdom of pursuing such practices as supply base reduction, global sourcing, and sourcing from supply clusters.
The concern and study of supply risk and supply continuity has recently come to the forefront in managing business and conducting research. This empirical study of U.S. and German firms investigates the relationship between perceived supply risk sources and supply disruption occurrence, as well as the use of supply chain resiliency practices to reduce disruption frequency. We demonstrate that supply managers' concerns with risk emanating from suppliers and the supply market are positively related to supply disruption occurrence. We further show how and when implementing flexibility and redundancy may reduce the effects of supply disruptions.
This paper reviews the use of case study research in operations management for theory development and testing. It draws on the literature on case research in a number of disciplines and uses examples drawn from operations management research. It provides guidelines and a roadmap for operations management researchers wishing to design, develop and conduct case-based research.
Our study examines the state of qualitative case studies in operations management. Five main operations management journals are included for their impact on the field. They are in alphabetical order: Decision Sciences, International Journal of Operations and Production Management, Journal of Operations Management, Management Science, and Production and Operations Management. The qualitative case studies chosen were published between 1992 and 2007. With an increasing trend toward using more qualitative case studies, there have been meaningful and significant contributions to the field of operations management, especially in the area of theory building. However, in many of the qualitative case studies we reviewed, sufficient details in research design, data collection, and data analysis were missing. For instance, there are studies that do not offer sampling logic or a description of the analysis through which research out-comes are drawn. Further, research protocols for doing inductive case studies are much better developed compared to the research protocols for doing deductive case studies. Consequently, there is a lack of consistency in the way the case method has been applied. As qualitative researchers, we offer suggestions on how we can improve on what we have done and elevate the level of rigor and consistency.
http://dx.doi.org/10.1016/j.jom.2009.12.001
In this study, we examined the effect of relational norms and agent cooperativeness on opportunism in buyer–supplier relationships. Drawing from the theoretical grounding of transaction cost economics, personality trait theory, and contingency theory, we proposed three distinct perspectives on opportunism mitigation in buyer–supplier relationships: (1) organizationalist, (2) individualist, and (3) interactionist, where relational norms, agent cooperativeness, and the interaction between them, respectively, serve as the key predictors in these three perspectives. The results of replicated experiments indicated that relational norms and agent cooperativeness interact with each other in mitigating opportunism and that the interactionist perspective yielded the highest explained variance in opportunism. This suggests that the interactionist perspective, a multi-level theoretical lens encompassing the dynamic interplay between organization-level and individual-level factors, was a more complete model in explaining opportunism than either the organizationalist or individualist perspectives. The consensus which emerged from post-experimental interviews of purchasing professionals is that agent personalities play an important role in buyer–supplier relationships. Some purchasing professionals had observed that uncooperative agents or personnel turnover in the boundary-spanning functions can substantially undermine even established relational exchanges. These qualitative findings are in line with our theoretical arguments and experimental outcomes.
Academics have increasingly recognized the benefits derived from social networks embedded within companies’ buyer–supplier relationships. However, prior research has only examined the influence of social capital elements on performance, either individually or in part. We propose an integrative model examining the relationships among relational, structural and cognitive dimensions of social capital, and between these dimensions and the cost and innovation performance of the firm. A sample of 163 buyer–supplier relationships is used to test the model. Regression results indicate that the relational dimension of social capital fully or partially mediates the effect of the cognitive dimension on performance, and partially mediates the link between the structural dimension, operationalized as social interaction ties, and innovation performance. Further, high levels of legal bonds were found to moderate the relationship between the relational dimension of social capital and performance outcomes. Implications for theory and managers are discussed.
A supply base is defined as the portion of a supply network that is actively managed by a buying company. The buying company, referred to as the focal company, manages the suppliers in the supply base through contracts and purchasing of parts, materials, and services. To facilitate better management of a supply base, we observe “complexity” as a key area of managerial consideration and apply the literature on complexity to the supply base. Supply base complexity is conceptualized in three dimensions: (1) the number of suppliers in the supply base, (2) the degree of differentiation among these suppliers, and (3) the level of inter-relationships among the suppliers. Four propositions have been formulated in terms of four major areas of research within supply chain management—transaction costs, supply risk, supplier responsiveness, and supplier innovation. Corollary propositions are also stated. Although a reduction in complexity may lead to lower transaction costs and increased supplier responsiveness, in certain circumstances it may also increase supply risk and reduce supplier innovation. Therefore, reducing supply base complexity in general may be a cost-efficient approach, but blindly reducing it may potentially decrease the buying company's overall competitiveness.