Linking decentralization in decision-making to resilience outcomes: a supply chain orientation perspective

ABSTRACT

Purpose: Global supply chains are increasingly becoming more prone to high-impact disruptions, which has been fairly evident with the coronavirus disease 2019 (COVID-19) pandemic. The capacity to address disruptions is essential for the survival of any organization. Coping with increasing complexity and uncertainties requires a systemic view of supply chains. Furthermore, a comprehensive understanding of the governance structure and timely decision-making are critical in times of disruptions. Although several aspects of supply chain resilience (SCRES) are broadly studied in the literature, the relationship between supply chain orientation (SCO), decentralization in decision-making and SCRES is an understudied area. Design/methodology/approach: This study takes a longitudinal approach to address this research gap with a comprehensive meta-analytic review to explore the relationships between the constructs of interest through the lenses of contingency and dynamic capability theories. Furthermore, 2 surveys with sample sizes of 250 and 200 were conducted with supply chain professionals to test the research framework before and after the pandemic to compare the findings. Findings: Structural Equation Modeling (SEM) analysis indicates a positive relationship between SCO and decentralization and between decentralization and SCRES. The post-COVID-19 analysis further validates the influence of agility, collaboration and situational awareness related to decentralization and resilience. More importantly, capabilities have a higher impact on resilience during the pandemic than before. Practical implications The results entreat organizations to attain decentralized decision-making vis-à-vis dedicated functional teams charged with reacting timely to disruptions. The teams should be empowered to leverage their knowledge and experiences regardless of their position in the hierarchy. Originality/value Although SCRES is an active research stream, the structural aspects of SCRES and its relationship with SCO are understudied. Therefore, this research puts forth a research framework and empirically tests hypotheses that frame the relationship between SCO, decentralization and resilience outcomes in pre- and post-COVID environments. © 2023, Emerald Publishing Limited.