Disentangling core functions of operational resilience: a critical review of extant literature

Abstract

This study identifies and systematically reviews the literature on resilience in management research in order to characterise operational resilience. We argue that operational resilience provides an integrative view on different resilience perspectives in business (supply chain, business continuity, infrastructure, organisational, strategic). Using the resource-based view and particularly dynamic capabilities perspective as theoretical lenses, operational resilience is discussed in relation to the core business processes of an enterprise. Five core functions (sense, build, reconfigure, re-enhance, sustain) are identified from literature and discussed taking into account desired and undesired consequences of uncertainties. Moreover, operational resilience is operationalised using routines pertaining to the identified core functions. The proposed operational resilience core functions are further scrutinised using two case examples. Future research is suggested to validate the identified core functions and to use them for empirical analysis, including investigation of relationships with operations management paradigms such as lean thinking.

Operational resilience and lean: in search of synergies and trade-offs

“…Companies that possess good operational resilience capabilities tend to prevent or reduce disruptions so that the potential to negatively affect their operations is minimised (Craighead et al, 2007). It is also evident from the definition that operationally resilient companies have the ability to quickly respond, recover from disruptions and exploit opportunities from the unanticipated events effectively (Birkie et al, 2014). A disruption or disruptive incident can be defined as an unanticipated and unplanned occurrence in the operating environment of the firm (internal or external)…”

“…Likewise, resilience and risk management studies in operations management highlight the importance of practices to better utilise operations resilience (e.g. Birkie et al, 2014;Ponomarov and Holcomb, 2009;Rice and Caniato, 2003).…”

“…Operational resilience results from proactive and reactive capabilities in managing unanticipated happenings (Craighead et al, 2007;Dabhilkar et al, 2013) that sustain operations while adapting to changes in the environment. Following similar arguments and in line with the resilience definition given above, Birkie et al (2014) propose five core functions (sense, build, reconfigure, re-enhance and sustain) of operational resilience, which are adopted in this study. Sense and build are proactive approaches.…”

“…Furthermore, cultural changes to embrace learning orientations are also found to be part of the risk management and resilience construct. The resilience core functions (Birkie et al, 2014) are based on such practices employed by companies to ultimately reduce the likelihood and negative consequences of unexpected disruptive circumstances. The resilience core functions and practices they encompass are shown in Table I based on the work of Birkie et al (2014) and Dabhilkar et al (2013).…”

Integration of resilience capabilities for Critical Infrastructures into the Emergency Management set-up

“…• Resilience capabilities and components identified to assess the Resilience Measurement Index of CI 4 , • Core functions of operational resilience (Birkie, et al, 2014), • "Resilience properties" (robustness, redundancy, resourcefulness, and rapidity) (Bruneau, et al 2003),…”