Disaster readiness’ influence on the impact of supply chain resilience and robustness on firms’ financial performance: a COVID-19 empirical investigation

Abstract

This study investigates the impact of supply chain (SC) disaster readiness on SC resilience and robustness and the subsequent impact on firms’ financial performance in the context of the COVID-19 outbreak. Drawing on the dynamic capabilities view and organisational readiness for change theory, we provide a theoretical model and assess data gathered of 398 French firms using structural equation modelling. The findings corroborate the role of SC disaster readiness in setting the stage for resilience and robustness. In addition, the results indicate the positive influence of SC resilience on financial performance; however, the effects of SC robustness on performance are not demonstrated. Based on these results, we offer theoretical and practical implications for the extant literature and provide further avenues for research.

KEYWORDS:

• Supply chain disaster readiness
• supply chain robustness
• supply chain resilience
• financial performance
• COVID-19 pandemic

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 https://fortune.com/2020/02/21/fortune-1000-coronavirus-china-supply-chain-impact/ (accessed 15th December 2020).

2 https://www.worldbank.org/en/news/press-release/2020/06/08/covid-19-to-plunge-global-economy-into-worst-recession-since-world-war-ii (accessed 15th December 2020).

3 https://www.rfi.fr/en/france/20200731-french-economy-plunges-by-almost-14-as-covid-19-lockdown-takes-its-toll (accessed 15th December 2020).

4 https://www.imf.org/en/Publications/WEO/Issues/2021/01/26/2021-world-economic-outlook-update (accessed 27th April 2021).

Additional information

Notes on contributors

Salomée Ruel

Salomée Ruel holds a Ph.D. in Management Sciences from Grenoble Alpes University (France). She is Associate Professor in Supply Chain Management and Information Systems Management at KEDGE Business School and belongs to the Sustainability Excellence Center. Her research focuses on supply chain strategy, inter-organizational relations, information systems, digitalisation, dynamic capabilities (agility, resilience, visibility, viability) and gender diversity in SCM. She has published articles in prestigious scientific journals such as International Journal of Production Economics, Annals of Operations Research, and International Journal of Physical Distribution & Logistics Management. She is the treasurer of the AIRL-SCM Scientific Association.

Jamal El Baz

Jamal El Baz is an Associate Professor of Logistics and Supply Chain Management at University Ibn Zohr. He has been awarded the Fulbright Fellowship and has published numerous papers at various prestigious journals in the field of business management and operations management such as International Journal of Production Economics, Annals of Operations Research, Journal of Business Ethics, and International Journal of Operations & Production Management. His research interests include sustainability in supply chains, risk management and corporate social responsibility.