Fake news on Facebook and their impact on supply chain disruption during COVID-19.

ABSTRACT

Social media (SM) fake news has become a serious concern especially during COVID-19. In this study, we develop a research model to investigate to what extent SM fake news contributes to supply chain disruption (SCD), and what are the different SM affordances that contribute to SM fake news. To test the derived hypotheses with survey data, we have applied partial least square based structural equation modelling (PLS-SEM) technique. Further, to identify how different configurations of SC resilience (SCR) capabilities reduce SCD, we have used fuzzy set qualitative comparative analysis (fsQCA). The results show that SM affordances lead to fake news, which increases consumer panic buying (CPB); CPB in turn increases SCD. In addition, SM fake news directly increases SCD. The moderation test suggests that, SCR capability, as a higher-order construct, decreases the effect of CPB on SCD; however, neither of the capabilities individually moderates. Complimentarily, the fsQCA results suggest that no single capability but their three specific configurations reduce SCD. This work offers a new theoretical perspective to study SCD through SM fake news. Our research advances the knowledge of SCR from a configurational lens by adopting an equifinal means towards mitigating disruption. This research will also assist the operations and SC managers to strategize and understand which combination of resilience capabilities is the most effective in tackling disruptions during a crisis e.g., COVID-19. In addition, by identifying the relative role of different SM affordances, this study provides pragmatic insights into SM affordance measures that combat fake news on SM.