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How do Supply Chain Mangers Affect Supply Chain Resilience? An Advice-Seeking Perspective
Abstract and Figures
Research on supply chain resilience has successfully established flexibility as a firm-level antecedent that contributes to supply chain resilience. However, little is known about the mechanisms that develop flexibility within a firm. Drawing on the social capital theory and social network theory, the authors claim that supply chain managers' advice-seeking plays a critical role in developing this antecedent. Specifically, the authors hypothesize that supply chain managers' structural and relational embeddedness in their reference network, comprised of individuals from whom they seek advice, are instrumental to developing supply chain flexibility, which subsequently enhances the firm's supply chain resilience. The authors use survey data collected from 385 manufacturing firms in Australia and employ Hayes and Preacher's (2014) mediator model to test the hypotheses empirically. Results provides overall support for our theoretical model.
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In this paper, we review the burgeoning but dispersed literature on CEO advice seeking, which has important effects on strategic decision making, the CEO’s and the board of directors’ effectiveness, and firms’ entrepreneurial orientation, innovativeness, and financial performance. We synthesize research findings about the key features of CEO advice seeking and its antecedents and outcomes across multiple levels of analysis. Based on our review, we identify important research gaps and develop a future research agenda that outlines new research questions and empirical foci that extend the current scope of analysis. We also highlight promising new theories and underutilized methods suitable for this area of research. With an integrative review and research agenda, we hope to stimulate cross-fertilization of different lines of inquiry and to encourage new research that shines a spotlight on the remaining puzzles of CEO advice-seeking research.
Purpose
The purpose of this study is to identify the prescribed formative elements of supply chain resilience (SCR) in literature, to compare them with the unique characteristics of high reliability organisations (HROs) and derive lessons useful for improving SCR.
Design/methodology/approach
Two systematic literature reviews are carried out as follows: one on SCR and the other on HRO, which identified 107 studies and 18 papers, respectively. The results from the review are presented, analysed and synthesised.
Findings
Findings suggest that despite significant similarities in some of the proposed formative elements for SCR and the characteristics of HROs, the strong managerial commitment exhibited in HROs is absent in SCR literature. More importantly, the most cited characteristic of HROs, which is their flexible decision making structure is pointed out as a prima lesson towards developing resilience in supply chains.
Practical implications
A decision making framework to facilitate flexible decision making for supply chains during crisis is presented. Further, practical lessons are pointed out from principles common to both streams of literature such as redundancy, human resource management, collaboration, agility, flexibility, culture and risk avoidance that can be implemented in supply chains.
Originality/value
This paper is the first study to systematically review HROs, adapt a HRO decision making framework and also apply the Cynefin framework to SCR. This, therefore, provides the basis to launch further research into the use of these theories and the role of decision-making in SCR creation.
Extant research on supply chain resilience has successfully identified a set of firm-level antecedents that contribute to supply chain resilience. However, little is known about the mechanisms by which these antecedents are developed within a firm. Drawing on the dynamic managerial capabilities view, we claim that supply chain managers play a critical role in developing these antecedents. Specifically, we hypothesize that supply chain managers’ social capital (personal relationships with managers in other firms), human capital (generic and firm-specific supply chain management skills), and cognition (ability to perceive supply chain disruptions and information processing style) are instrumental to the development of four firm-level supply chain resilience antecedents (visibility, responsiveness, flexibility, and collaboration), which subsequently enhance the firm’s supply chain resilience. Empirical analysis using survey data collected from manufacturing firms in Australia provides overall support for our theoretical model and hypotheses.
Since the early 2000s, research at the intersection of entrepreneurship and strategic management has flourished, as has work at the intersection of strategic management and supply chain management. In contrast, little inquiry has occurred at the intersection of entrepreneurship and supply chain management. This presents a tremendous opportunity, as does the relative lack of work bringing together all three fields. We seek to set the stage for exploiting these opportunities by first describing how incorporating a series of key supply chain concepts—omni-channel, last-mile delivery, supply chain agility, supply chain resiliency, and service recovery—could enrich entrepreneurship research. We then explain how the boundaries of key entrepreneurship concepts—opportunity, entrepreneurial orientation, optimal distinctiveness, bricolage, and fear of failure—could be extended to the supply chain context. Both of these moves bring strategic management concepts into play, as well. In accomplishing our tasks, we draw on examples from how firms attempted to navigate the COVID-19 pandemic via moves spanning entrepreneurship, supply chain management, and strategic management.
Purpose
The COVID-19 crisis has caused major supply chain disruptions, and these can be traced back to basic supply chain risks that have previously been well identified in literature. The purpose of this paper is to suggest a pathway for closing the gap between supply chain resilience research and efforts in industry to develop a more resilient supply chain.
Design/methodology/approach
Based upon virtual roundtables with supply chain executives, supplemented with interviews and publicly available datapoints about COVID-19 impact on the supply chain, we explore challenges in industry and suggest opportunity areas where research can support efforts in industry to improve supply chain resilience.
Findings
During the COVID-19 crisis, participating supply chain executives are experiencing textbook supply, demand and control risks in the supply chain. They also observe a lack of preparedness, shortcomings of current response plans and the need for greater supply chain resilience. Focus areas in improving resilience mirror generic recommendations from literature and provide a rich opportunity to reduce the gap between research findings and efforts in industry.
Research limitations/implications
More empirical, event-based and less conceptual research into supply chain resilience has been called for several times during the last two decades. COVID-19 provides a very rich opportunity for researchers to conduct the type of research that has been called for. This research may contribute to the structurally de-risking of supply chains. Areas of research opportunity include decision models for supply chain design that avoid overfocusing on costs only, and that consider the value of flexibility, short response times and multiple sources as well as methods for enriching supplier segmentation and evaluation models to reduce a focus on savings and payment terms only.
Practical implications
Key levers for de-risking the supply chain include the need to balance global sourcing with nearshore and local sourcing, the adoption of multiple sources and a greater utilization of information technology to drive more complete and immediate information availability. Perhaps most importantly, talent management in supply chain management needs to promote a focus not just on costs, but also on resilience as well as on learning from current events to improve decision-making.
Social implications
There is a great opportunity for supply chain managers to grow their contribution to society beyond risk response into the proactive reduction of risks for the future. Researchers can serve society by informing this progress with impactful research.
Originality/value
This article offers initial empirical exploration of supply chain risks experienced in the context of COVID-19 and approaches considered in industry to improve supply chain resilience. Opportunities for empirical, event-based and less conceptual research that has been called for years, are identified. This research can help close the gap between supply chain resilience research and efforts in industry to improve supply chain resilience. Hopefully the research opportunities identified can inspire the flurry of research that can be expected in response to the multiple special issues planned by journals in our field.
Purpose
The present study considers disruption in the buyer–supplier–supplier triad. This triad has a common second-tier supplier as the disruption source, which gives us the tetradic context. The goal is to advance the knowledge on how a first-tier supplier's resilience against lower-tier disruptive events can be developed through horizontally connecting with the other first-tier supplier and how the buyer can benefit from its first-tier suppliers' resilience capability.
Design/methodology/approach
Data from 33 triads was collected and analyzed.
Findings
As predicted, coopetition between two first-tier suppliers increases the first-tier supplier's capability to be resilient to disruptive events emanating from a lower tier source. However, contrary to initial theorization, the first-tier supplier's resilience capability affects the buyer's performance during disruptive events negatively. With increasing buyer–supplier social bonds, this negative relationship can partly be alleviated.
Research limitations/implications
Analyzing resilience within a triad to a disruption in the tetradic context reveals unexpected dynamics. Individual supplier's resilience may have a negative impact on the buyer's resilience in certain disruption events.
Practical implications
The buyer can increase collective suppliers' resilience through establishing horizontal links. To prevent becoming a victim of the supplier's resilience in the event of a second-tier disruption, a buyer needs to become a member of the supplier's relational network.
Originality/value
We propose that resilience can rest with the suppliers. This observation has implications for the buyer when selecting and coordinating suppliers. Further, it considers a context beyond a triad by venturing into the tetradic context. We anticipate more studies in tetrads in future and this study can serve as a bridge.
Marketing in an increasingly tumultuous marketplace requires resilience-the ability to withstand, adapt, and flourish despite turmoil and adverse change-that extends beyond firm boundaries. Although external resources are arguably essential to achieve resilience, little is known how and when firms' social capital derived from interorganizational relationships can lead to supply chain resilience. Therefore, we investigate the role of absorptive capacity and marketing-supply chain management alignment in realizing the potential impact of social capital on supply chain resilience. Using data obtained from dual respondents from 265 Turkish firms, we test the mediating role of absorptive capacity and the moderating role of marketing-supply chain management alignment. Our findings indicate absorptive capacity mediates the relationship between social capital and supply chain resilience, and the links between social capital and absorptive capacity and social capital and supply chain resilience are stronger when marketing-supply chain management alignment is high. We also find that supply chain resilience is positively associated with organizational performance, empirically supporting the proposed value of supply chain resilience for firm strategy. Accordingly, our paper highlights that both absorptive capacity and marketing-supply chain management alignment are necessary to realize the actual value of social capital for supply chain resilience and ensuing performance.
In describing measures used in their research, authors frequently report having adapted a scale, indicating that they changed something about it. Although such changes can raise concerns about validity, there has been little discussion of this practice in our literature. To estimate the prevalence and identify key forms of scale adaptation, we conducted two studies of the literature. In Study 1, we reviewed the descriptions of all scales (N = 2,088) in four top journals over a 2-year period. We found that 46% of all scales were reported by authors as adapted and that evidence to support the validity of the adapted scales was presented in 23% of those cases. In Study 2, we chose six scales and examined their use across the literature, which allowed us to identify unreported adaptations. We found that 85% of the administrations of these scales had at least one form of adaptation and many had multiple adaptations. In Study 3, we surveyed editorial board members and a select group of psychometricians to evaluate the extent to which particular adaptations raised concerns about validity and the kinds of evidence needed to support the validity of the adapted scales. To provide guidance for authors who adapt scales and for reviewers and editors who evaluate papers with adapted scales, we present discussions of several forms of adaptations regarding potential threats to validity and recommendations for the kinds of evidence that might best support the validity of the adapted scale (including a reviewer checklist).
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.
Purpose
The purpose of this paper is to investigate whether the manufacturer that occupies the central position in the triadic supply chain is capable of enhancing relationships within both dyads to produce the network rent and extra profit shared among all supply chain actors.
Design/methodology/approach
The paper opted for an exploratory study using a survey of triads forming supply chains. To reveal the capability of yielding the network rent in the examined triads, multiple regression analysis with Interaction effects was used. Having confirmed the existence of supernormal profit, the partial least square path model was developed to investigate the effects of manufacturer structural embeddedness on relational embeddedness and the resulting impact on the network rent.
Findings
The obtained findings show that manufacturer structural embeddedness has a direct and positive effect on relational embeddedness and relational embeddedness of two dyads (represented as a higher order factor) has a direct and positive effect on the network rent. In addition, relational embeddedness mediates the positive relationship between manufacturer structural embeddedness and network rent, as the null model with no mediation appears to underestimate the direct and positive effect between manufacturer structural embeddedness and the network rent.
Research limitations/implications
The study makes three key contributions. First, it extends the application of both relational and structural embeddedness to grasp the network architecture of the triadic supply chain. Second, the concept of manufacturer structural embeddedness is used to elaborate on the role of the manufacturer in establishing relationships of high quality with the supplier and the customer. In connection to the previous point, the calculated network rent demonstrates that establishing collaborative relationships in triadic supply chains may bring a significant supernormal profit, derived as the outcome of mutual interplay between the relational performances of two dyads.
Practical implications
The study shows that manufacturers intending to use their central position to develop collaborative relationships with both partners, and the supplier and the customer, ought to appreciate the role of social ties embedded in interorganizational networks. The paper also implies that in parallel with using formal contracts as a governance mechanism, the manufacturer centrally positioned in the triadic supply chains ought to deliberately shape relational embeddedness of both dyads. Finally, managers can consider the ways to enhance relational embeddedness in a triad by improving relational embeddedness of a certain dyad.
Originality/value
This study provides a novel framework for studying two basic dimensions of embeddedness (structural and relational) and their impact on the network rent in triadic supply chains that goes beyond the dyadic perspective and incorporates the extended supply chain.