ABSTRACT
PurposeThe purpose of this study is to investigate the role of procurement digitalization in reducing uncertainty in the supply chain (SC) and how it relates to mitigating SC risks and improving SC resilience (SCRES).Design/methodology/approachBased on survey data collected from the procurement functions of 147 Finnish firms, this study conceptualizes data analytics, information sharing and procurement process digitalization as drivers of procurement digitalization and investigates their impact on SC risk management and SCRES by using partial least squares path modeling.FindingsProcurement digitalization through data analytics and digital process maturity requires effective information sharing among SC partners and SC risk management to be able to improve SCRES. Procurement digitalization increases information-processing capacities and reduces uncertainty in the SC.Originality/valueThis study contributes to the understanding on the relationships between procurement digitalization and SCRES.
ABSTRACT
A firm's ability to manage risk and resilience in supply chains has turned out to be an invaluable capability during the COVID-19 pandemic. Fast responsiveness, quick decision-making, and the ability to reconfigure the resource base have helped firms during the pandemic, which caused rapid disruptive effects for which they were unprepared. This research applies the dynamic capability view as a theoretical framework to study the impact of the COVID-19 pandemic on firms' dynamic capabilities and, the influence of dynamic capabilities on supply chain resilience. These capabilities are highly needed to survive during the pandemic. Using the survey data, we found that the impacts that COVID-19 had on a firm's upstream supply chain influence firms' capabilities to seize opportunities or neutralise threats. Furthermore, we found that reconfiguring ability has a strong influence on supply chain resilience. Thus, the impacts of COVID-19 on the downstream supply chain pushed firms to realign resources to respond better to demand. Upstream disruptions pushed companies to react to threats and opportunities in the supply market, while downstream disruptions leveraged reconfiguring capabilities.