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Do not expect others do what you should! Supply chain complexity and mitigation of the ripple effect of disruptions
KTH, School of Industrial Engineering and Management (ITM), Sustainable production development.ORCID iD: 0000-0002-4123-0721
Politecnico di Milano.
2020 (English)In: The International Journal of Logistics Management, ISSN 0957-4903, ISSN 0957-4903Article in journal (Refereed) Published
Abstract [en]

Purpose

Recent studies have argued that companies may actively implement practices to mitigate disruptions in their supply chain and reduce the extent of damage on performance. Other studies have shown that disruptions may propagate in supply chains, leading to consequences that are more negative and raising doubts on the effectiveness of mitigation strategies implemented downstream. This study investigates the influence of supply chain complexity on the two phenomena and their interplay, taking a focal company's perspective.

Design/methodology/approach

A systematic procedure for data collection, encoding and aggregation based on incident data mainly from secondary sources was used. Multiple regression models were run to analyse direct and moderation effects involving resilience, distance of impact location from trigger point, and supply chain complexity on weighted performance change.

Findings

Supply chain complexity is found to have positive moderation on the ripple effect of disruption. Resilience capability remains to have dominating direct positive effect in mitigating disruptions when supply chain complexity is taken into account.

Research limitations/implications

This study extends the research discourse on supply chain resilience and disruption management with focus on the supply side. It demonstrates that, along with the severity of the disruption scenario, the ripple effect must also be considered when analyzing the benefits of resilience practices implemented by the focal company.

Practical implications

Complexity in the supply chain can only help to smooth-out the rippling effects of a disruption, which go largely beyond supply-demand unbalances and lead time fluctuations. To mitigate it better, the focal company has to act proactively with adequate resilience practices, which also connects to the importance of better visibility across multiple supply chain tiers.

Originality/value

To the best of the authors' knowledge, this is the first study that empirically tests the benefits of resilience practices and the ripple effect of disruptions under the moderation role of supply chain complexity.

Place, publisher, year, edition, pages
Emerald Group Publishing Limited, 2020.
Keywords [et]
supply chain complexity; disruption; ripple effect; resilience; resource-based view
National Category
Production Engineering, Human Work Science and Ergonomics Other Engineering and Technologies not elsewhere specified
Research subject
Industrial Engineering and Management
Identifiers
URN: urn:nbn:se:kth:diva-271892DOI: 10.1108/IJLM-10-2018-0273ISI: 000524485600001Scopus ID: 2-s2.0-85083063282OAI: oai:DiVA.org:kth-271892DiVA, id: diva2:1422960
Note

QC 20200602

Available from: 2020-04-10 Created: 2020-04-10 Last updated: 2020-06-02Bibliographically approved

Open Access in DiVA

No full text in DiVA

Other links

Publisher's full textScopushttps://www.emerald.com/insight/content/doi/10.1108/IJLM-10-2018-0273

Authority records BETA

Birkie, Seyoum Eshetu

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