Resilience of medium-sized firms to supply chain disruptions: the role of internal social capital

Author(s):  
Mikaella Polyviou ◽  
Keely L. Croxton ◽  
A. Michael Knemeyer

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.

2019 ◽  
Vol 121 (3) ◽  
pp. 771-786 ◽  
Author(s):  
Haley Baron ◽  
Carolyn Dimitri

Purpose Since the implementation of the National Organic Program in 2002, the US organic market has grown in both scale and scope, consequently placing pressure on the organic supply chain. The crucial role of matching consumer demand for final products with farm-level production falls to certified organic handlers, the intermediary firms that process, manufacture and distribute organic products. Locating certified organic commodities and products that meet their needs, in a timely manner, is costly and challenging. The paper aims to discuss these issues. Design/methodology/approach A mixed-methods study was designed to better understand organic sector supply chain relationships in the USA. Data were collected from certified organic handlers via survey and semi-structured interviews. Those interviewed were randomly selected from 153 survey respondents who expressed an interest in being interviewed. This paper presents an analysis of interviews with 26 certified organic handlers regarding the relationships with their suppliers. Findings Three key concepts characterize the relationships between handlers and their suppliers: closeness, support and commitment. Nearly all handler supplier relationships possess some degree of closeness, where the handler expresses interest in their supplier. The relationships follow a spectrum of intensity, where the least engaged handlers provide little support and commitment, and the most engaged handlers provide support and commitment through a long-term relationship or contract. Originality/value Research into the organic supply chain is challenging to undertake, given the proprietary nature of the relationships. As the organic market continues to grow, the relationships along the supply chain will need to evolve to allow firms to meet consumer demand.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Atif Saleem Butt

PurposeThis paper explores the steps/countermeasures taken by firms to address supply chain disruptions in the wake of COVID-19.Design/methodology/approachThis study employs a case study methodology and employs 46 semi-structured interviews with senior managers of the three buying firms, four distribution centres and four supplying firms based in four countries (Pakistan, Sri Lanka, China and India).FindingsResults reveal that manufacturers are refining production schedules to meet the production challenges. Distributors are working with secondary suppliers to meet the inventory shortage. Finally, supplying firms are evaluating the impact of demand, focusing on short-term demand-supply strategy, preparing for channel shifts, opening up additional channels of communication with key customers, understanding immediate customer’s demand and priorities and finally becoming more agile.Research limitations/implicationsThere are some limitations to this study. First, the results of this study cannot be generalized to a wider population. Second, this study explores the interpretations of senior managers based in four Asian countries only.Practical implicationsSupply chain firms can use these findings to understand how COVID-19 is affecting firms. Firms can also use the suggestions provided in this study to mitigate the impact of COVID-19 and make the best out of this pandemic.Originality/valueThis study contributes to the supply chain disruption literature by exploring the robust countermeasure taken by supply chain firms amid COVID-19 outbreak. In particular, it explores such countermeasures from the perspective of three different entities (buyer, supplier and distributor) based in four different countries in the South Asian region.


Author(s):  
Sanjay Kumar ◽  
Jiangxia Liu ◽  
Jess Scutella

Purpose – Supply chain structure, characteristics, and applicable policies differ between developing and developed countries. While most supply chain management research is directed toward supply chains in developed countries, the authors wish to explore the financial impact of disruptions on supply chains in a developing country. The purpose of this paper is to highlight the importance of effective supply chain management practices that could help avoid or mitigate disruptions in Indian companies. The authors study the stock market impact of supply chain disruptions in Indian companies. The authors also aim to understand the difference in financial implications from disruptions between companies in India and the USA. Design/methodology/approach – Event study methodology is applied on supply chain disruptions data from Indian companies. The data are compiled from public news release in Indian press. A data set of 301 disruptions for a ten-year period from 2003-2012 is analyzed. Stock valuation of a company is used to assess the financial impact. Findings – The results show that Indian companies on average lose −2.88 percent of shareholder wealth in an 11-day window covering the event day and five days pre- and post-disruption announcement. A significant stock decline was observed as early as three days prior to announcement, indicating possibility of insider trading and information differentials between investors. Irrespective of the location and responsibility of a disruption, companies experience significant negative returns. Company size, book-to-market ratio, and debt-to-equity ratio were found to be insignificant in affecting the stock market reactions to disruptions. The authors also compiled supply chain disruptions data for US companies. When compared to the US companies, Indian companies register a significantly higher stock decline in the event of a disruption. Research limitations/implications – Supply chain disruptions data from India and the USA are analyzed. Broad applicability of results across countries may require studying other developing countries. The research demonstrates potential effectiveness of investment in supply chain management initiatives. It also motivates research focussed specifically on supply chains in developing countries. Practical implications – Supply chain decision makers in India could benefit from investment in disruptions management and mitigation practices. The results provide a valuation of effective supply chain management. The findings provide guidance for investors in making decisions when supply chains face disruptions. Originality/value – The paper studies the financial consequences of supply chain disruptions in a developing country. The study is valuable because of increasing globalization, outsourcing, and the economic role of developing countries.


2019 ◽  
Vol 4 (2) ◽  
pp. 82-106 ◽  
Author(s):  
Martin Scanlan ◽  
Minsong Kim ◽  
Larry Ludlow

PurposeAs the demographic landscape in the USA becomes more culturally and linguistically diverse (CLD), schools must build educators’ professional knowledge and skills to better serve students whose mother tongues are not English. The purpose of this paper is to report on the formation of a network of schools collaboratively transforming their approaches to teaching and learning in order to meet the educational needs of this changing student population.Design/methodology/approachTo determine how relational networks in this network affect the learning of educators to implement the bilingual education model, the authors drew from three data sources: a social network survey, semi-structured interviews and archival documents.FindingsThe schools in this study are engaged in a dramatic restructuring, moving from monolingual English schools to a network of two-way immersion bilingual schools. The evidence from this study revealed different information sharing structures within the relational networks. The authors found organizational structures of interactive spaces and teams supporting the relational networks that created communities of practice, and these communities of practice fostering all three aspects of profession capital (human, social and decisional).Research limitations/implicationsThe analysis points toward the complicated nature of organizational learning within networks of schools. While some relational networks were strong, the authors also note gaps and disconnections in the network interactions, despite the structures promoting connectivity. Hence, this study sheds light on both the power and the limitation of networked learning within and across school striving to improve the teaching and learning for CLD students.Originality/valueThis original analysis lays the foundation for future investigations of networked learning.


Author(s):  
Jiangxia Liu ◽  
Sourish Sarkar ◽  
Sanjay Kumar ◽  
Zhenhu Jin

Purpose The purpose of this paper is to explore the stock market impact of supply chain disruptions for public companies in Japan. The impact in the USA and Japan are also compared. Design/methodology/approach Using event study on a data set comprising of disruptions announced by Japanese and US companies during year 2000-2013, the authors measure the stock price reaction to supply chain disruptions. Findings The study finds that the Japanese companies, in an 11-day window around disruption announcement, witness an average abnormal return of −0.61 percent, which is statistically significant. In comparison to the USA, this stock decline is qualitatively smaller, yet statistically indifferent. The abnormal return is found significant in the two days before disruption announcement. However, a follow-up study with a refined data set (where the event date is the earlier of the announcement or disruption date) does not find any significant abnormal return prior to the event date. This difference from US market suggests the possibility of insider trading. Factors such as book-to-market ratio, industry type, and market capitalization did not affect the stock decline. Research limitations/implications The research is limited to a data set from Japan and the USA. Further generalization of findings may need studies focused on other countries. Practical implications The results are of interest for supply chain managers. The results should also help global investors in making investment decisions. Originality/value Most supply chain disruptions management research is focused on companies in western countries. The paper is the first to test the impact of supply chain disruptions in Japan.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Atif Saleem Butt

PurposeThis paper explores the steps/countermeasures taken by buying and distributing firms to address supply chain disruptions caused by COVID-19.Design/methodology/approachThis study employs a multiple case study methodology and conducts 36 semi-structured interviews with senior managers of nine different firms producing, procuring or distributing products from China and other highly impacted South Asian regions (Pakistan, Sri Lanka, India).FindingsResults reveal that buying firms are moving to agile production, focusing on tier-1 supplier risk, enhancing inbound material visibility and temporarily closing production facilities to respond to the challenges posed by COVID-19. Furthermore, distribution centres are modifying their inventory policies, evaluating alternative outbound routes and sources of supply to manage disruptions caused to their business operations amid COVID-19 outbreak.Practical implicationsSupply chain firms can use the countermeasures provided in this study to mitigate the impact of COVID-19 and make the best out of this pandemic.Originality/valueThis study contributes to the supply chain literature by exploring the countermeasures taken by firms to mitigate the impact of COVID-19. In particular, this study explores such countermeasures from the perspective of two different entities (buyers and distributors) along the supply chain. Firms can use the countermeasures highlighted in this study to mitigate the impact of COVID-19 on the supply chain.


2017 ◽  
Vol 17 (1) ◽  
pp. 90-111 ◽  
Author(s):  
Micael Thunberg ◽  
Martin Rudberg ◽  
Tina Karrbom Gustavsson

Purpose This study aims to identify and categorise common on-site problems from a supply chain management (SCM) perspective and to trace the origin of these problems in the construction project process, the supply chain or in the intersection between these processes. This allows for identification of how on-site problems affect SCM in construction projects and how they can be mitigated. Design/methodology/approach A literature review in combination with semi-structured interviews was used to identify on-site problems. This enabled triangulation and strengthened both construct validity and internal validity. Findings On-site problems can be categorised in one of the four following categories: material flows, internal communication, external communication or complexity. The first category has its origin in the supply chain, the second in the construction project process, the third in the supply chain-construction process intersection on site and the fourth in the construction project as a whole. The findings conclude that on-site problems often originate from construction companies’ lack of supply chain orientation. Research limitations/implications It is suggested that supply chain planning (SCP) can facilitate on-site problem mitigation in construction project management. This extends the body of knowledge of SCP in construction project management and supports the development of effective on-site construction project management. Practical implications The results show that SCP can aid construction project management in handling on-site problems earlier in the project process. Originality/value The main value lies in extending the body of knowledge in construction project management research by applying an SCM perspective and by introducing SCP to support more effective construction project management.


2018 ◽  
Vol 23 (4) ◽  
pp. 351-376 ◽  
Author(s):  
Yiyi Fan ◽  
Mark Stevenson

Purpose This paper aims to investigate how supply chain risks can be identified in both collaborative and adversarial buyer–supplier relationships (BSRs). Design/methodology/approach This research includes a multiple-case study involving ten Chinese manufacturers with two informants per organisation. Data have been interpreted from a multi-level social capital perspective (i.e. from both an individual and organisational level), supplemented by signalling theory. Findings Buyers use different risk identification strategies or apply the same strategy in different ways according to the BSR type. The impact of organisational social capital on risk identification is contingent upon the degree to which individual social capital is deployed in a way that benefits an individual’s own agenda versus that of the organisation. Signalling theory generally complements social capital theory and helps further understand how buyers can identify risks, especially in adversarial BSRs, e.g. by using indirect signals from suppliers or other supply chain actors to “read between the lines” and anticipate risks. Research limitations/implications Data collection is focussed on China and is from the buyer side only. Future research could explore other contexts and include the supplier perspective. Practical implications The types of relationships that are developed by buyers with their supply chain partners at an organisational and an individual level have implications for risk exposure and how risks can be identified. The multi-level analysis highlights how strategies such as employee rotation and retention can be deployed to support risk identification. Originality/value Much of the extant literature on supply chain risk management is focussed on risk mitigation, whereas risk identification is under-represented. A unique case-based insight is provided into risk identification in different types of BSRs by using a multi-level social capital approach complemented by signalling theory.


2018 ◽  
Vol 8 (3) ◽  
pp. 253-266 ◽  
Author(s):  
Tillmann Böhme ◽  
Alberto Escribano ◽  
Emma Elizabeth Heffernan ◽  
Scott Beazley

Purpose The construction industry is a significant driver of economic activity in many countries. However, there has been a lack of growth in productivity within the Australian construction sector over recent years. The purpose of this paper is to gain an in-depth understanding of the causes for declining productivity within the Australian mid-rise residential construction network. Design/methodology/approach Two in-depth case studies have been conducted with a builder and developer, both significant entities of the Australian mid-rise residential construction network. Case study data collection comprised a five-stage process including semi-structured interviews and archival information review. Findings Drivers for declining construction productivity were identified under the categories of: industry-, firm- and project-level productivity. The drivers include: incomplete documentation, design changes, inefficient project management, supply chain fragmentation, among others. Originality/value The contribution of this study is the identification and categorisation of major issues impacting sector productivity along the mid-rise residential construction supply chain. The research identified that the substructure and superstructure are the construction phases during which most productivity losses occur. Mitigations are discussed in terms of systemic sector productivity increases at an industry, firm and project levels.


2018 ◽  
Vol 38 (2) ◽  
pp. 314-332 ◽  
Author(s):  
Hendryk Dittfeld ◽  
Kirstin Scholten ◽  
Dirk Pieter Van Donk

Purpose While systems theory explicitly considers interactions as part of a system’s complexity, supply chain complexity (SCC) is mostly conceptualized and measured as a linear summation of several aspects. The purpose of this paper is to challenge the general understanding by explicitly investigating interactions between and across different types (detail and dynamic) and levels (plant, supply chain, environment) of SCC. Design/methodology/approach An exploratory multiple case study methodology is adopted drawing on in-depth semi-structured interviews with respondents from eight manufacturing plants in the food processing industry. Findings On the one hand, it is found that different types add and increase overall SCC. On the other hand, the study also shows the opposite: interactions between detail and dynamic complexity can reduce the overall SCC experienced. Additionally, the findings highlight the specific food processing characteristics such as the variability of quality and quantity of raw materials that underlie interactions between types and levels of SCC. Originality/value This study adds to theory by empirically showing that interactions across and between types and levels do not automatically increase, but might also reduce SCC. As such, the findings contribute new detail to the concept of SCC: aspects of complexity do not necessarily add up linearly. Additionally, this study is one of the first to demonstrate how specific contextual aspects from the food processing industry relate to SCC.


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