ABSTRACT
It is important for firms to repurpose production responsively during a crisis such as the COVID-19 pandemic, to seize the market opportunity and create social value. However, occupational health and safety (OHS) can also be a concern in a crisis, and adherence to OHS management systems can undermine a firm's responsiveness in repurposing decision making. We adopt the "capability-rigidity" lens to construct a connection between OHS management standards (i.e., OHSAS 18001) and firms' adaptation responsiveness. After sampling 734 listed Chinese manufacturing firms, our match-based analysis reveals that firms certified with OHSAS 18001 were less responsive during COVID-19 in terms of production repurposing than those without the certification. Yet, certain experience, namely, prepandemic manufacturing of related products, experience of the severe acute respiratory syndrome (SARS) epidemic, and being geographically located close to firms that produced medical supplies, could attenuate this effect. We discuss the implications of our findings in the context of and adding to the literature on safety management, certified management standards, and organizational adaptation and learning.
ABSTRACT
The COVID-19 pandemic has created significant disruptions in both demand and supply. Our study makes use of such dramatic changes in demand and supply during the pandemic to examine resource dependence and power balancing/unbalancing issues in buyer-supplier relationships. Specifically, we investigate the effect of customer and supplier concentrations on firm resilience during the pandemic. Drawing on resource-dependence theory (RDT), we theorize that shifts in demand and supply in different pandemic stages influence the effect of customer and supplier concentrations on firm resilience by altering the power dynamics between focal firms and their concentrated customers and suppliers. Central to our theorizing is that the worsening power imbalance is more detrimental. Measuring firm resilience by loss and recovery (i.e., change) in productivity, our analysis of 23,440 Chinese listed firms' quarter observations from 2019 to 2020 shows that customer concentration is negatively related to firm resilience in the disruption stage but has no effect in the restoration stage. Supplier concentration is positively related to firm resilience in the disruption stage but undermines firm resilience in the restoration stage. These findings largely confirm our theoretical propositions. We discuss the theoretical and managerial implications.