Supply Chain Resilience Assessment With Financial Considerations: A Bayesian Network-Based Method

Purpose Based on the emerging view of supply chains as complex adaptive systems, this paper aims to build and test an analytical model for resilience assessment surrounding supply chain risks at the level of the supply chain system and its individual tiers. Design/methodology/approach To address the purpose of this study, a multimethod research approach is adopted as follows: first, data envelopment analysis (DEA) modelling and fuzzy set theory are used to build a fuzzy network DEA model to assess risk resilience of the overall supply chains and their individual tiers; next, the proposed model is tested using a survey of 150 middle- and top-level managers representing nine industry sectors in Iran. Findings The survey results show a substantial variation in resilience ratings between the overall supply chains characterizing nine industry sectors in Iran and their individual tiers (upstream, downstream and organizational processes). The findings indicate that the system-wide characteristic of resilience of the overall supply chain is not necessarily indicative of the resilience of its individual tiers. Practical implications High efficiency scores of a number of tiers forming a supply chain are shown to have only a limited effect on the overall efficiency score of the resulting supply chain. Overall, our research findings confirm the necessity of adopting both the system-wide and tier-specific approach by analysts and decision makers when assessing supply chain resilience. Integrated as part of risk response and mitigation process, the information obtained through such analytical approach ensures timely identification and mitigation of major sources of risk in the supply chains. Originality/value Supply chain resilience assessment models rarely consider resilience to risks at the level of individual supply chain tiers, focusing instead on the system-wide characteristics of supply chain resilience. The proposed analytical model allows for the assessment of supply chain resilience among individual tiers for a wide range of supply chain risks categorized as upstream, downstream, organizational, network and external.

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An empirical examination of firm financial performance along dimensions of supply chain resilience

Management Research Review ◽

10.1108/mrr-02-2016-0030 ◽

2017 ◽

Vol 40 (3) ◽

pp. 254-269 ◽

Cited By ~ 24

Author(s):

Xun Li ◽

Qun Wu ◽

Clyde W. Holsapple ◽

Thomas Goldsby

Keyword(s):

Supply Chain ◽

Financial Performance ◽

Three Dimensions ◽

Empirical Examination ◽

Content Type ◽

Supply Chain Resilience ◽

Critical Dimensions ◽

Firm Financial Performance ◽

Supply Chain Agility ◽

The Impact

Purpose This paper aims to investigate the impact of three critical dimensions of supply chain resilience, supply chain preparedness, supply chain alertness and supply chain agility, all aimed at increasing a firm’s financial outcomes. In a turbulent environment, firms require resilience in their supply chains to prepare for potential changes, detect changes and respond to actual changes, thus providing superior value. Design/methodology/approach Using survey data from 77 firms, this study develops scales for preparedness, alertness and agility. It then tests their hypothesized relationships with a firm’s financial performance. Findings The results reveal that the three dimensions of supply chain resilience (i.e. preparedness, alertness and agility) significantly impact a firm’s financial performance. It is also found that supply chain preparedness, as a proactive resilience capability, has a greater influence on a firm’s financial performance than the reactive capabilities including alertness and agility, suggesting that firms should pay more attention to proactive approaches for building supply chain resilience. Originality/value First, this study develops a comparatively comprehensive definition for supply chain resilience and explores its dimensionality. Second, this study provides empirically validated instruments for the dimensions of supply chain resilience. Third, this study is one of the first to provide empirical evidence for direct impact of supply chain resilience dimensions on a firm’s financial performance.

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