Twin-objective supply chain collaboration to cope with rare but high impact disruptions whilst improving performance

Abstract

Purpose Rare but high impact (R-HI) disruptions, which are caused by legal changes, socio-technical accidents, or natural disasters, are becoming more frequent and have strong short-term and long-term impacts on performance. Meanwhile, the short-term perspective of managers leads to adoption of mitigation strategies with lower investments and immediate performance improvement. The purpose of this paper is to provide insights on supply chain collaboration (SCC) to establish so-called twin-objective strategy to help both risk mitigation (through moderation effects) and performance improvement (through a direct positive impact). Moreover, power position will be considered as the control variable. Design/methodology/approach A cross-sectional approach was adopted with primary data collected through a survey in China. Data were analyzed using structural equation modeling with partial least squares estimations. A sub-group model analysis was applied to test the effect of the control variable. Findings The findings verify that SCC has both a direct positive impact on performance and moderation effects on the relationships between sources of R-HI disruptions and performance. The results of sub-group model analysis illustrate that both powerful and weak focal firms benefit from SCC, but in different ways. Originality/value The study shows that the allocation of gains from collaborative advantage should be added to the theory-building of relational view. Meanwhile, the research extends the focal firm’s context to its supply chain’s context so that classic contingency theory can be extended to adequately explain supply chain management phenomena.

Sustainable supply chain management towards disruption and organizational ambidexterity: A data driven analysis

“… I10 Supply chain collaboration SC collaboration is a model in which members of the supply chain share risks and resources in order to improve the competitive advantage of the entire supply chain. Manthou et al (2004); Im et al (2019) ; Al-Doori (2019) ; Adem et al (2018) ; Namdar et al (2018) ; Zhu et al (2017) ; Aggarwal et al (2020) ; Birkel & Hartmann (2020) ; Rashad & Nedelko (2020) ; Scholten & Schilder (2015) ; Gabler et al (2017) ; Chen et al (2017) ; Silvestre et al (2018) ; Nassar et al (2019) . I11 Supply chain coordination SC coordination describes collective efforts to reach goals, which is “the act of managing dependencies between entities and the joint effort of entities working together towards mutually defined goals.” Li et al (2018) ; Zhao et al (2020) ; Hosseini-Motlagh et al (2020) ; Heydari et al (2019) ; Hosseini-Motlagh et al (2019) ; Oliveira & Handfield (2019) ; Esmaeili-Najafabadi et al (2019) ; Liu et al (2017) ; Wang et al (2017) ; Li et al (2017) ; Danusantoso & Moses (2016) ; Xiao & Chen (2016) ; Ali & Nakade (2016) ; Zheng et al (2015) ; Mortazavi et al (2015) ; Watanabe & Kusukawa (2015) ; Chen et al (2020) ; Chakraborty et al (2020) ; Zhao et al (2020) .…”

Standardized management systems and risk management in the supply chain

“…In such a complex system quite often they appear bearing signs of randomness and risk, which are very difficult to predict. Risk in the supply chain should be understood as the probability of making wrong decisions, choosing bad strategies or non-optimal logistic configurations, resulting from irregularities occurring within the links that co-create the supply chains as well as the influence of the external environment (Zhu et al, 2017;Revilla and Saenz, 2017). The main sources that imply risk in the supply chain include: suppliers, customers, service providers, competition, external stakeholders and the relations between the links that co-create the supply chain (Chen et al, 2013).…”

The Role of Collaboration and Integration in the Supply Chain of Construction Industry

“…Supply chain collaboration advances a firm's capacity to capitalize rapidly on showcase openings. For illustration, joint problem-solving increments the speed that items are brought to advertise by settling issues speedier [32]. Collaboration between supply chain accomplices can be sources of unused item thoughts.…”