Supply chain disruption propagation: a systemic risk and normal accident theory perspective
When a disruption occurs in a firm, its effects are often felt throughout the supply chain. As supply chains expand globally and companies pursue velocity and efficiency, the probability of disruptions propagating throughout a chain grows. In this paper, we employ a qualitative, grounded theory case...
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| Published in | International journal of production research Vol. 56; no. 1-2; pp. 43 - 59 |
|---|---|
| Main Authors | , |
| Format | Journal Article |
| Language | English |
| Published |
London
Taylor & Francis
17.01.2018
Taylor & Francis LLC |
| Subjects | |
| Online Access | Get full text |
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| Abstract | When a disruption occurs in a firm, its effects are often felt throughout the supply chain. As supply chains expand globally and companies pursue velocity and efficiency, the probability of disruptions propagating throughout a chain grows. In this paper, we employ a qualitative, grounded theory case study approach to help understand what drives supply chain disruption propagation and to provide theoretical insights into this emerging area. For a more complete perspective, we study three interconnected tiers in seven unique supply chains. Each supply chain triad consists of (1) a focal firm (a manufacturer), (2) a supplier to the focal firm and (3) a customer of the focal firm allowing us to gain perspective from three levels in multiple supply chains. Three aggregate dimensions are defined which help explain the propagation of supply chain disruptions: the nature of the disruption, structure and dependence, and managerial decision-making. Within these dimensions, six themes are identified giving an increased level of granularity into disruption propagation: correlation of risk, compounding effects, cyclical linkages, counterparty risk, herding and misaligned incentives. Organisations should consider these themes and their interactions to effectively deal with supply chain disruptions. |
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| AbstractList | When a disruption occurs in a firm, its effects are often felt throughout the supply chain. As supply chains expand globally and companies pursue velocity and efficiency, the probability of disruptions propagating throughout a chain grows. In this paper, we employ a qualitative, grounded theory case study approach to help understand what drives supply chain disruption propagation and to provide theoretical insights into this emerging area. For a more complete perspective, we study three interconnected tiers in seven unique supply chains. Each supply chain triad consists of (1) a focal firm (a manufacturer), (2) a supplier to the focal firm and (3) a customer of the focal firm allowing us to gain perspective from three levels in multiple supply chains. Three aggregate dimensions are defined which help explain the propagation of supply chain disruptions: the nature of the disruption, structure and dependence, and managerial decision-making. Within these dimensions, six themes are identified giving an increased level of granularity into disruption propagation: correlation of risk, compounding effects, cyclical linkages, counterparty risk, herding and misaligned incentives. Organisations should consider these themes and their interactions to effectively deal with supply chain disruptions. |
| Author | Scheibe, Kevin P. Blackhurst, Jennifer |
| Author_xml | – sequence: 1 givenname: Kevin P. surname: Scheibe fullname: Scheibe, Kevin P. organization: Department of Supply Chain and Information Systems, College of Business, Iowa State University – sequence: 2 givenname: Jennifer surname: Blackhurst fullname: Blackhurst, Jennifer email: Jennifer-blackhurst@uiowa.edu organization: Department of Management Sciences, Tippie College of Business, University of Iowa |
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| Snippet | When a disruption occurs in a firm, its effects are often felt throughout the supply chain. As supply chains expand globally and companies pursue velocity and... |
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| SubjectTerms | case study Compounding effects Decision making Disruption disruption management Incentives Propagation Risk supply chain disruption propagation supply chain risk management Supply chains systemic risk |
| Title | Supply chain disruption propagation: a systemic risk and normal accident theory perspective |
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