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

Abstract

PurposeGlobal 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/approachThis 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.FindingsStructural 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 implicationsThe 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/valueAlthough 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.

Towards strengthening resilience of organizations by risk management tools: A scientometric perspective on COVID‐19 experience in a healthcare and industrial setting

“…[101] Indeed, agility focuses on rapid system reconfiguration [99] and it is considered as the dynamic ability of supply chain to respond rapidly, easily, and cost-effectively [93] to unpredictable disruptions [102] and to quickly address variations in the industry and customer expectations. [103] Additionally, the investigated literature referred to agility as the ability to quickly adapt the organizational structure and operations policy as a consequence of turbulent change [100] and the collaboration of stakeholders to respond quickly to changing environments and accredit with new capabilities. [104] Key features associated to supply chain agility were speed and supply chain visibility, [102,103,105] and adaptive capacity.…”

“…[103] Additionally, the investigated literature referred to agility as the ability to quickly adapt the organizational structure and operations policy as a consequence of turbulent change [100] and the collaboration of stakeholders to respond quickly to changing environments and accredit with new capabilities. [104] Key features associated to supply chain agility were speed and supply chain visibility, [102,103,105] and adaptive capacity. [100] Because the critical role of collaboration between the companies and with other entities participating in the value creation process is recognized, under COVID-19, emergency collaboration and communication have been widely promoted.…”

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“…Following the post-COVID-19 analysis, the importance of agility, collaboration, and situational awareness and decentralization is also one of set mentioned as ones increasing resilience. Notably, it is underscored in work of Adana et al (2024) that capabilities play a more substantial role in influencing resilience during the pandemic compared to the pre-pandemic period. The importance of collaborative networks is clear at every level, highlighting their critical role (Candeias Fernandes, Franco, 2022).…”

A hybrid e-logistics service quality approach: modeling the evolution of B2C e-commerce

“…MTurk is a human intelligence marketplace where, for a nominal fee, individuals can voluntarily elect to complete pre-defined tasks. MTurk has been deemed suitable for collecting appropriate data for testing relationships between endogenous and exogenous variables (Adana et al, 2023;Cevikparmak et al, 2022;Chernev and Blair, 2015;Daly and Nataraajan, 2015;Dickens et al, 2023;Kelley et al, 2003;Lambrecht and Tucker, 2013;Peinkofer et al, 2022;Sussman and Olivola, 2011;Uvet et al, 2021Uvet et al, , 2023. MTurk offers an opportunity for behavioral studies in the logistics and supply chain domains to improve sample size and collect survey responses on well-defined criteria (Knemeyer and Naylor, 2011).…”