ABSTRACT
The COVID-19 pandemic made it clear that the impact of supply chain disruptions on different organizations may vary widely. Even if different levels of capabilities (agility, adaptability, etc.) may have contributed to the differential in outcomes, organizations need to learn how to harness their capabilities effectively in the face of disruptions. Although there is vast literature on supply chain disruption management, risk management, and resilience, we are not aware of any theory that comprehensively explains the decision-making process for managing disruptions. We argue that coping theory can explain how organizations may channelize resources based on two stages of appraisal to handle long- and short-term disruptions. Borrowing from psychology, we adapt coping theory to disruption management for any organization in any industry. In this paper, we demonstrate how supply chain coping strategies may explain outcomes of several organizations from different industries during the COVID-19 pandemic. We argue that organizations may sustain and even thrive if they adopt the right coping strategies in their context. We present our thesis using the following three themes: (1) We first identify potential demand trajectories organizations may follow during and after the pandemic, (2) We explain how coping strategies adopted by organizations may impact these trajectories, and (3) We present a framework to help the decision makers understand potential positive impact the coping strategies may bring to their organizations in future crises.
ABSTRACT
PurposeThe Covid-19 pandemic exposed the fragility of global supply chains. Attempts to deepen our understanding of the effects of the pandemic on global supply chains mostly offer anecdotal evidences and lack theory grounded research. The purpose of this paper is to develop a conceptual framework to help explain supply chain disruption management.Design/methodology/approachThis is a conceptual paper and uses a theory building approach. It develops a conceptual framework adapted from coping theory in psychology to explain supply chain disruption management. To refine the framework, the authors independently reviewed extant supply chain disruption management literature. The authors then studied the frameworks on stress theory in psychology. Following the review of both streams of literatures, the authors developed an initial draft of the conceptual model. This draft was then iteratively refined through extensive discussions among the authors.FindingsCoping theory can help revise supply chain disruption management with an alternative lens that has not been applied before in this domain. The proposed conceptual framework is generic and can be applied to disruption management strategies for any organization in any industry.Originality/valueThe conceptual framework proposed in this paper offers a new theoretical lens to supply chain disruption management discourse. It contributes to the operational understanding of supply chain disruption management.
ABSTRACT
The COVID-19 pandemic made it clear that the impact of supply chain disruptions on different organizations may vary widely. Even if different levels of capabilities (agility, adaptability, etc.) may have contributed to the differential in outcomes, organizations need to learn how to harness their capabilities effectively in the face of disruptions. Although there is vast literature on supply chain disruption management, risk management, and resilience, we are not aware of any theory that comprehensively explains the decision-making process for managing disruptions. We argue that coping theory can explain how organizations may channelize resources based on two stages of appraisal to handle long- and short-term disruptions. Borrowing from psychology, we adapt coping theory to disruption management for any organization in any industry. In this paper, we demonstrate how supply chain coping strategies may explain outcomes of several organizations from different industries during the COVID-19 pandemic. We argue that organizations may sustain and even thrive if they adopt the right coping strategies in their context. We present our thesis using the following three themes: (1) We first identify potential demand trajectories organizations may follow during and after the pandemic, (2) We explain how coping strategies adopted by organizations may impact these trajectories, and (3) We present a framework to help the decision makers understand potential positive impact the coping strategies may bring to their organizations in future crises.