Contingency Management and Supply Chain Performance in Korea: A COVID-19 Pandemic Approach

Abstract

Unexpected incidents are driving global supply chains to the brink of collapse. To effectively manage contingency events like the COVID-19 pandemic and improve operational performance, factors such as information technology (IT), relational competencies, cooperation with supply chain partners and integration of supply chain systems that contribute to cooperation are essential. This study found that IT and relational competencies positively influence the integration of supply chain systems, and relational competencies have a stronger implication on supply chain integration and collaboration. In addition, supply chain collaboration, strengthened by supply chain integration, positively affects contingency management. Finally, contingency management positively influences operational performance. In this study, we adopted partial least squares structural equation modeling (PLS-SEM) method in the analysis with 102 surveys collected from business managers. Through the evaluation of determinants of contingency management and supply chain performance, this study widens the theoretical base of supply chain management and provides managers with optimal ways to build a more resilient supply chain system to cope with unexpected incidents. Consequently, with collaboration-based contingency management, companies can solve problems properly and reduce additional loss, which will enhance operational performance and enable sustainable business success.

Supply chain sustainability during turbulent environment: Examining the role of firm capabilities and government regulation

“…Throughout the supply chain process, the firms are needed to reduce environmental impacts throughout the supply chain process (Linton et al 2007). However, in the turbulent situation, the governments also adopt a collaborative approach for the firms for sustaining their supply chain resilience (Oh et al 2020).…”

“…Hence it is needed how by improving the firm technological, managerial, and other capabilities supported by leadership with structured contingency plan, supply chain strategy can be improved. The practitioners have started thinking how appropriate use of advanced technology could improve the competence of the firms to address such ominous situation in future (Oh et al 2020). It is essential to think how the use of technology could improve the supply chain resilience through integration of different functional areas of the firms by linking them with the distributers, suppliers, and customers (Kim and Park 2017).…”

“…Thus, for addressing any turbulent environment, firms need to take help of advanced technologies like blockchain, artificial intelligence (AI), cloud computing, internet of things (IoT) and so on for sustaining the supply chain system (Kumar et al 2020). Use of advanced technology in sustaining supply chain management is commonly called supply chain innovation management (Oh et al 2020). The innovative abilities of firms needed to sustain supply chain management during any unstable environment is perceived to be improved by the active interference of leadership support (Lei et al 2018).…”

What Can Drive Consumers’ Dining-Out Behavior in China and Korea during the COVID-19 Pandemic?

“…This may serve to decrease the negative perceptions of the psychological risks of dining out, such as fear, stress, or other negative infection-related emotions. In addition, because online-based food delivery services could be more convenient and safer than dining out to some consumers [75], an easy-to-use delivery system can offer an efficient channel for exchanging information and products during the pandemic [76]. Therefore, restaurants could also focus more on online ordering and delivering in areas with high infection rates, which might reduce consumers' safety concerns and be an alternative to dining out.…”

Research on the Supply Chain Performance Evaluation Mechanism Based on Emergencies

“…At present, disasters worldwide have become more frequent and diverse, and large-scale emergencies are pushing the global supply chain to the brink of collapse [18,19]. In particular, the speed of market changes is gradually accelerating, and companies are confronting tremendous pressure on sustainable development and SCM [20].…”