Purpose-This study aims to investigate the influence of supply chain (SC) complexity on the effectiveness of resilience capabilities in mitigating supply chain disruptions. Hypotheses about direct and moderating influences of complexity on resilience capabilities and performance change after disruption are built and quantitatively tested. Design/methodology/approach-Partial least square-based Structural Equation Modelling (SEM) with formative constructs was employed as an overall approach. Secondary data on SC disruptions, related performance change and resilience practices was collected from multiple sources through a systematic procedure. The data pertaining to independent, moderating and dependent variables was systematically encoded prior to performing regression analysis. Findings-SC structural complexity is found to have a significant positive relation with performance improvement after disruption, along with resilience capability; it also positively moderates the resilience-performance link. Research limitations/implications-The complexity factors we considered in this study do not include dynamic forms due to the nature of data collected. Future research may attempt to include and test if the results of this study could hold also when additional complexity parameters are taken into account. Practical implications-Managers are often trying to reduce supply chain complexity. This study implies that some level of complexity is beneficial also for a better recovery of operational performance affected due to disruption. Resilience capabilities become more effective when leveraged on higher resources and complexity in the supply chain. Originality/value-This is the first study to empirically investigate the influence of SC complexity on the resilience-performance link.
PurposeRecent studies have argued that companies may actively implement practices to mitigate disruptions in their supply chain and reduce the extent of damage on performance. Other studies have shown that disruptions may propagate in supply chains, leading to consequences that are more negative and raising doubts on the effectiveness of mitigation strategies implemented downstream. This study investigates the influence of supply chain complexity on the two phenomena and their interplay, taking a focal company's perspective.Design/methodology/approachA systematic procedure for data collection, encoding and aggregation based on incident data mainly from secondary sources was used. Multiple regression models were run to analyse direct and moderation effects involving resilience, distance of impact location from trigger point, and supply chain complexity on weighted performance change.FindingsSupply chain complexity is found to have positive moderation on the ripple effect of disruption. Resilience capability remains to have dominating direct positive effect in mitigating disruptions when supply chain complexity is taken into account.Research limitations/implicationsThis study extends the research discourse on supply chain resilience and disruption management with focus on the supply side. It demonstrates that, along with the severity of the disruption scenario, the ripple effect must also be considered when analyzing the benefits of resilience practices implemented by the focal company.Practical implicationsComplexity in the supply chain can only help to smooth-out the rippling effects of a disruption, which go largely beyond supply-demand unbalances and lead time fluctuations. To mitigate it better, the focal company has to act proactively with adequate resilience practices, which also connects to the importance of better visibility across multiple supply chain tiers.Originality/valueTo the best of the authors' knowledge, this is the first study that empirically tests the benefits of resilience practices and the ripple effect of disruptions under the moderation role of supply chain complexity.
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