Strengthening supply chain resilience during COVID ‐19: A case study of JD .com

Managing supply chain resilience assessment model-relevant factors and activities using an FCM-FBWM approach

Supply chain resilience is essential for companies to survive in today's competitive market, as they face environmental and unforeseeable challenges in their supply chain. This paper aims to model and manage the factors and activities that influence supply chain resilience and how they relate to each other. This will help us devise plans for enhancing the resilience of a supply chain. By taking into account the factors and activities and their interrelationships, organizations can use their limited resources more efficiently to improve their supply chain resilience. We use a management matrix to rank the factors based on how they affect and contribute to the supply chain resilience. We conduct an empirical study in a pharmaceutical company to demonstrate the proposed management approach and provide improvement scenarios based on the ranking of the factors. The results show that the most important factors are "the cooperation and trust between supply chain members", "Visibility & Agility", and "Leadership Support and Commitment". The ranking of the factors may vary in different companies. Therefore, other companies can apply the method described in this paper and perform different improvement scenarios according to the ranking of the factors to effectively allocate their limited management efforts.

Predicting the effects of supply chain resilience and robustness on COVID-19 impacts and performance: Empirical investigation through resources orchestration perspective

This study investigates the effects of supply chain (SCRE) and robustness (SCRO) on COVID-19 super disruption impacts and firm's financial performance by mobilizing the resources orchestration theory (ROT) as the main theoretical framework. We adopt structural equation modeling analysis of data collected from 289 French companies. The findings reveal the significantly positive influence of resources orchestration on SCRE and SCRO and the role of the latter in mitigating the pandemic disruption impacts. Notwithstanding, depending on whether the measures are objective or subjective, the effects of SCRE and SCRO on financial performance vary. Overall, this paper presents empirical evidence of the influence of both of SCRE and SCRO on pandemic disruption impacts and financial performance. Furthermore, this research provides insights to guide practitioners and decision makers regarding resources orchestration and the deployment of SCRE and SCRO.

Impact of supply chain digitalization on supply chain resilience and performance: A multi-mediation model

The outbreak of COVID-19 has accelerated the building of resilient supply chains, and supply chain digitalization is gradually being recognized as an enabling means to this end. Nevertheless, scholars generally agree that more empirical studies will need to be conducted on how digitalization can facilitate supply chain resilience at various stages and enhance supply chain performance in a highly uncertain environment. To echo the call, this study develops a theoretical influence mechanism of "supply chain digitalization → supply chain resilience → supply chain performance" based on dynamic capability theory. The proposed relationships are validated using survey data collected from 210 Chinese manufacturing companies. The results help identify the paths digitalization and supply chain resilience can take to improve supply chain performance in a turbulent environment. The different roles of three supply chain resilience capabilities, namely absorptive capability (before the disruption), response capability (during the disruption), and recovery capability (after the disruption), which impact on supply chain performance differently, are highlighted. In addition, it is found that digitalization can bring a differential impact on these three supply chain resilience capabilities through different aspects of resource and structural adjustment measures. The findings also confirm the mediating role of absorptive capability, response capability, and recovery capability between digitalization and supply chain performance. During crisis, supply chain digitalization can increase cost-effectiveness, enhance information and communication efficiency, and promote supply chain resilience to achieve better performance. For theoretical contribution, this study enriches the research on supply chain digitalization and resilience by underpinning the relationships between the two with dynamic capability theory. For practical contribution, the research findings provide insights for enterprises to leverage digitalization to strengthen resilience in supply chain.

Sustainable and resilient e-commerce under COVID-19 pandemic: a hybrid grey decision-making approach

E-commerce saw a paradigm shift during COVID. Consumers turned to online shopping when pandemic lockdowns caused brick-and-mortar stores to shut for extended periods. Although the pandemic drove more buyers online, it had negative impacts that affected e-commerce performance. This study assesses both positive and negative impacts and their relative significance. The findings are then used to prioritize different strategies for e-commerce development in four vibrant Middle Eastern economies: United Arab Emirates, Saudi Arabia, Qatar, and Kuwait. The study employs a hybrid approach incorporating grey analytical hierarchy process (GAHP) and grey relational analysis (GRA). The GAHP evaluates the relative significance of impacts, whereas the GRA ranks the strategies. The study is based on the responses from 36 local e-commerce specialists. The findings revealed that the supply chain disruption was a rather significant factor, and that "expanding supplier base" was a top-ranked strategy. The study suggests that increasing market share of e-commerce will necessitate the improvement of the supply chains, including the expansion of the supply base, as well as the establishment of sustainable supply chains. In addition to that, the moment has come to implement meaningful changes, such as digital transformation of supply chains, in order to fulfil customer expectations.

Firms' responses to the COVID-19 pandemic

The COVID-19 pandemic requires firms to adequately respond. In this study, we first explore in our empirical data how firms responded to the COVID-19 crisis and identify five tactical response types, operational, digitalization, financial, supportive, and organizational responses. Furthermore, our findings indicate that responses vary in scope; Some firms act on their own, while others engage in collaborations. Finally, we find that the response angle is different across firms, as some firms leverage potential and others primarily mitigate risk. Second, we follow an event study design to measure the financial implications of these responses. We find that responses to the COVID-19 pandemic generally entail a positive stock market reaction. Financial and digitalization responses, as well as risk mitigation responses, are consistently evaluated positively. We discuss our findings in context of different theoretical lenses, substantiating the emerging literature on the COVID-19 crisis, and the established literature on crisis response management.

The contingency effects of dependence relationship on supply chain information sharing and agility

Purpose

Supply chain agility (SCA) is the primary strategy for reducing impacts and quick recovery when supply chains experience a disruption risk, such as the COVID-19 pandemic. This study will investigate how SCA can be achieved through supply chain information sharing (SCIS) under the different dependence relationships (DR) with suppliers or customers. The purpose of this paper is to investigate this issue.

Design/methodology/approach

Based on information process and resource dependency theories, this study constructs and empirically tests a proposed model of the relationships amongst the three dimensions of SCIS and the two areas of SCA and the contingency effects of two types of DR on those relationships. Using a dataset collected from 400 manufacturers in China, the authors tested this theoretical model using multi-group and structural path analysis.

Findings

The results of the structural path and multi-group analyses show that (1) all dimensions of SCIS are positively correlated with both areas of SCA and (2) dependence on the supplier and dependence on the customer have completely different impacts on the relationship between SCIS and SCA.

Originality/value

This study can improve the understanding of the multidimensional concepts of SCIS and SCA and relationships between them under two different DR conditions in the Chinese manufacturing setting. It contributes to IS and the SCA literature and provides theoretically driven and empirical explanations for the diverse dynamics between the dependence on the supplier and customer.

The mediating role of knowledge management processes in the effective use of artificial intelligence in manufacturing firms

Purpose

This paper aims to provide and empirically test a conceptual model in which artificial intelligence (AI), knowledge management processes (KMPs) and supply chain resilience (SCR) are simultaneously considered in terms of their reciprocal relationships and impact on manufacturing firm performance (MFP).

Design/methodology/approach

In the study, six hypotheses have been developed and tested through an empirical survey administered to 120 senior executives of Italian manufacturing firms. The data analysis has been carried out via the partial least squares structural equation modelling approach, using the Advanced Analysis for Composites 2.0 variance-based software program.

Findings

Using a conceptual model validated using an empirical survey, the study sheds light on the relationships between AI, KMPs and SCR, as well as their impacts on MFP. In particular, the authors show the positive effects of the adoption of AI on KMPs, as well as the influence of KMPs on SCR and MFP. Finally, the authors demonstrate that KMPs act as a mediator through which AI affects SCR and MFP.

Practical implications

This study highlights the critical role of KMPs for manufacturing firms that can deploy AI to stimulate KMPs and through attaining a high level of the latter might succeed in enhancing both their SCR and MFP.

Originality/value

This study demonstrates that manufacturing firms interested in properly applying AI to ameliorate their performance and resilience must carefully consider KMPs as a mediator mechanism.

Product availability and stockpiling in times of pandemic: causes of supply chain disruptions and preventive measures in retailing

The coronavirus pandemic in 2020 brought global supply chain disruptions for retailers responding to the increased demand of consumers for popular merchandise. There is a need to adapt the existing supply chain models to describe the disruptions and offer the potential measures that businesses and governments can take to minimize adverse effects from a retail logistics perspective. This research analyses the possible reasons for supply and demand disruptions using a mathematical model of a retail supply chain with uncertain lead times and stochastic demand of strategic consumers. The established concepts of supply chain management are applied for the model analysis: multi-period inventory policies, bullwhip effect, and strategic consumers. The impact of the pandemic outbreaks in the model is two-fold: increased lead-time uncertainty affects supply, while consumer stockpiling affects demand. Consumers' rational hoarding and irrational panic buying significantly increase retailers' costs due to higher safety stock and demand variability. The bullwhip effect further exacerbates the disruption. The research contributes to the recent literature on business response to supply chain disruptions by developing a model where both retailers and consumers decide on the order quantity and reorder point during a pandemic outbreak. Buying limits, continuous inventory review, government rationing, substitutability, and omnichannel fulfillment are the measures that can limit the damage of supply chain disruptions from stockpiling during the pandemic. Effective communication and price and availability guarantees can mitigate the negative impact of panic buying.

Managing panic buying-related instabilities in supply chains: A COVID-19 pandemic perspective

Global supply chains (SCs) have been severely impacted by the COVID-19 pandemic on several levels. For example, SCs suffered from panic buying-related instabilities and multiple disruptions of supply, demand, and capacity during the pandemic. This study developed an agent-based model (ABM) to predict the effects of panic buying-related instabilities in SCs and offered strategies to improve them. The ABM model includes a simulation and optimization model of a typical SC of an essential product manufacturer (i.e., toilet paper SC) for the analysis of scenarios and strategies to observe improvements in SCs. Among the four strategies identified, the findings suggest boosting production capacity to the maximum and ensuring optimal reorder points, order sizes, and trucks helped the essential product manufacturers reduce panic buying-related instabilities in their SCs.

Collaboration as a structural aspect of proactive social sustainability: the differential moderating role of distributive and procedural justice

Purpose

This paper aims to adopt the strategy-structure-performance (SSP) framework to explore how proactive social strategy could motivate firms to collaborate with suppliers on social sustainability initiatives, and how such collaborative efforts could unlock a win-win opportunity for both noneconomic (social performance) and economic (operational performance) performance. Additionally, drawing on the tenets of the social exchange theory, the different moderating effects of distributive justice and procedural justice on the social collaboration-performance relationship are also examined.

Design/methodology/approach

This study uses survey data collected from 215 manufacturing companies in China. The proposed hypotheses are tested using multiple linear regression models as well as the PROCESS macro within SPSS.

Findings

The results suggest that (1) a proactive social strategy could motivate firms to collaborate with suppliers on joint social activities and (2) social collaboration with suppliers can have a significant positive effect on both social and operational performance. The moderation results suggest that distributive justice has a differential effect on the collaboration-performance link. Particularly, distributive justice strengthens the relationship between social collaboration and operational performance, while it weakens the relationship between social collaboration and social performance. Surprisingly, procedural justice did not have a significant moderating effect on the social collaboration-performance link.

Originality/value

This paper extends the SSP framework to the social sustainability context by not only stressing the importance of proactivity in managing sustainability, but also revealing collaboration as a structural aspect that could achieve superior performance benefits. This study also contributes to sustainable supply chain literature by exploring the moderating roles of justice elements.

Rebuilding disrupted supply chains: How can a self-organised social group facilitate supply chain resilience?

Purpose

This paper seeks to explore how a self-organised social group (SOSG) can facilitate supply chain resilience (SCRES) during an emergency condition.

Design/methodology/approach

A netnographic research was conducted on SONJO, an online SOSG emerging in response to problems in personal protective equipment (PPE) and food small businesses' supply chains (SCs) during the state of COVID-19 emergency in Yogyakarta, Indonesia. Qualitative data of 237,010 words were extracted from the group chats among 223 SONJO WhatsApp Group (WAG) members and were analysed using template analysis.

Findings

This paper reveals five communicative acts through which the SOSG facilitates SCRES, namely supply chain (SC) knowledge sharing, networking, bridging, mapping, and mindfulness. The enactment of these communicative acts could foster SC collaboration and help rebuild and sustain the SC operations during the critical period of the pandemic. The SOSG also facilitates the SC actors to be heedful of their responsive actions and risky operations.

Practical implications

This paper emphasises the need for organisations to build and maintain relationships with social communities and to extend their social capital beyond their existing SC linkages as an alternative way to survive unexpected disruptions.

Originality/value

This paper offers a novel perspective to understand SCRES from an external force. It proposes that, in the face of a devastating disruption, SCRES is not a self-induced process and that the SOSG could play a pivotal role in rebuilding the disrupted SCs. It also shows how a humanitarian effort could help rebuild commercial SCs.

Adapting supply chain operations in anticipation of and during the COVID-19 pandemic

This article investigates the impacts of the COVID-19 pandemic and their proactive mediation by adaptive operational decisions in different network design structures in anticipation of and during the pandemic. In generalized terms, we contribute to the understanding of the effect of preparedness and recovery decisions in a pandemic setting on supply chain operations and performance. In particular, we examine the impact of inventory pre-positioning in anticipation of a pandemic and the adaptation of production-ordering policy during the pandemic. Our model combines three levels, which is not often seen jointly in operations management literature, i.e., pandemic dynamics, supply chain design, and operational production-inventory control policies. The analysis is performed for both two- and three-stage supply chains and different scenarios for pandemic dynamics (i.e., uncontrolled propagation or controlled dispersal with lockdowns). Our findings suggest that two-stage supply chains exhibit a higher vulnerability in disruption cases. However, they are exposed to a lower system inertia and show positive effects at the recovery stage. Supply chain adaptation ahead of a pandemic is more advantageous than during the pandemic when specific operational recovery policies are deployed. We show that it is instructive to avoid simultaneous changes in structural network design and operational policies since that can destabilize the production-inventory system and result in higher product shortages.

Incentive Mechanism Design in Collaborative Management of Public Health Emergencies

Against the background of the worldwide spread of the COVID-19 pandemic, due to the lack of effective collaborative incentive mechanisms, issues of dislocation and incoordination have emerged in the public health emergency management system (PES) globally. Nevertheless, the available research rarely touches upon the incentive mechanism design for the collaborative management of PES. To alleviate these inefficiency operations problems with PES, three game-theoretical decision models, including a decentralized decision model without public governance policy incentive (GPI), a decentralized decision model with GPI, and a collaborative decision model with GPI, were developed and analyzed to explore and design the incentive mechanism of PES. Furthermore, the corresponding numerical and sensitivity analyses were conducted to validate the modelling results in the article. The research results show that: (1) the collaborative decision scenario with GPI performs best, and the decentralized decision scenario with GPI performs second-best regarding the equilibrium emergency management efforts (EMEs) and utilities in all the decision scenarios; (2) an incentive mechanism of the “carrot + Stick” can effectively enhance the collaborative management of public health emergencies and its governance-driven operational performance/efficiency; (3) strengthening the performance assessment of emergency management for relevant government departments is beneficial in improving the overall emergency management efficiency of the PES; (4) reducing the cost of EMEs and enhancing the effectiveness of EMEs are conducive to improving the overall emergency management efficiency of the PES. This research provides a novel framework for designing an effective incentive mechanism to overcome the incoordination impacts and achieve collaborative operations across the PES.

Investigating the relationship between digital technologies, supply chain integration and firm resilience in the context of COVID-19

The outbreak of the COVID-19 pandemic has significantly augmented the complexity of information, adding to the challenges that firms face in effectively processing and grasping accurate information. As a result, the production uncertainty of firms has been seriously intensified during the pandemic, disrupting the normal operation of firms and their supply chains. Digital technologies serve as salient tools that help firms to process and analyse information, consequently enhancing firm resilience in the face of supply chain disruptions. This study aims to examine how digital technologies affect firm resilience in the context of COVID-19 through the lens of information processing theory and a large-scale survey conducted among Chinese manufacturers. Specifically, our study evaluates the mediating effect of supply chain integration (internal integration, customer integration and supplier integration) and the moderating effect of information complexity. The results show that supply chain integration plays a mediating role in the effect of digital technologies on firm resilience, and the mediation effect is particularly significant for customer integration. Furthermore, digital technologies have a stronger impact on firm resilience when information complexity is high. The findings advance our understanding and recognition of the resilience implications of digital technologies and provide important managerial implications for improving firm resilience in the context of COVID-19.

Open Innovation in Times of Crisis: An Overview of the Healthcare Sector in Response to the COVID-19 Pandemic

The COVID-19 pandemic has caused huge and disruptive technological changes in the healthcare sector, transforming the way businesses and societies function. To respond to the global health crisis, there have been numerous innovation projects in the healthcare sector, including the fast design and manufacturing of personal protective equipment (PPE) and medical devices, and testing, treatment, and vaccine technologies. Many of these innovative activities happen beyond organizational boundaries with collaboration and open innovation. In this paper, we review the current literature on open innovation strategy during the pandemic and adopt the co-evolution view of business ecosystems to address the context of change. Based on a detailed exploration of the COVID-19-related technologies in the UK and global healthcare sectors, we identify the key emerging themes of open innovation in crisis. Further discussions are conducted in relation to each theme. Our results and analysis can help provide policy recommendations for the healthcare sector, businesses, and society to recover from the crisis.

Digital twin-driven smart supply chain

Today’s supply chain is becoming complex and fragile. Hence, supply chain managers need to create and unlock the value of the smart supply chain. A smart supply chain requires connectivity, visibility, and agility, and it needs be integrated and intelligent. The digital twin (DT) concept satisfies these requirements. Therefore, we propose creating a DT-driven supply chain (DTSC) as an innovative and integrated solution for the smart supply chain. We provide background information to explain the DT concept and to demonstrate the method for building a DTSC by using the DT concept. We discuss three research opportunities in building a DTSC, including supply chain modeling, real-time supply chain optimization, and data usage in supply chain collaboration. Finally, we highlight a motivating case from JD.COM, China’s largest retailer by revenue, in applying the DTSC platform to address supply chain network reconfiguration challenges during the COVID-19 pandemic.