182
Views
0
CrossRef citations to date
0
Altmetric
Research Article

The value of backup supply for mitigating disruption risk with equity finance

, &
Received 11 Nov 2023, Accepted 11 Mar 2024, Published online: 23 Apr 2024

References

  • Aghajani, M., S. Torabi, and N. Altay. 2023. “Resilient Relief Supply Planning Using An Integrated Procurement-warehousing Model Under Supply Disruption.” Omega 118: 102871. https://doi.org/10.1016/j.omega.2023.102871.
  • Bapna, S., and M. Ganco. 2021. “Gender Gaps in Equity Crowdfunding: Evidence From a Randomized Field Experiment.” Management Science 67 (5): 2679–2710. https://doi.org/10.1287/mnsc.2020.3644.
  • Brown, J., and G. Martinsson. 2019. “Does Transparency Stifle Or Facilitate Innovation.” Management Science 65 (4): 1600–1623. https://doi.org/10.1287/mnsc.2017.3002.
  • Butticè, V., and S. Vismara. 2022. “Inclusive Digital Finance: The Industry of Equity Crowdfunding.” The Journal of Technology Transfer 47 (4): 1224–1241. https://doi.org/10.1007/s10961-021-09875-0.
  • Chen, K., and L. Yang. 2014. “Random Yield and Coordination Mechanisms of a Supply Chain with Emergency Backup Sourcing.” International Journal of Production Research 52 (16): 4747–4767. https://doi.org/10.1080/00207543.2014.886790.
  • Chen, J., X. Zhao, and Y. Zhou. 2012. “A Periodic-review Inventory System with a Capacitated Backup Supplier for Mitigating Supply Disruptions.” European Journal of Operational Research 219 (2): 312–323. https://doi.org/10.1016/j.ejor.2011.12.031.
  • Cote, S. 2012. Personal Interview on November 1, 2011 and Follow-up on August 23, and September 7.
  • Devalkar, S., and H. Krishnan. 2019. “The Impact of Working Capital Financing Costs on the Efficiency of Trade Credit.” Production and Operations Management 28 (4): 878–889. https://doi.org/10.1111/poms.12954.
  • Difrancesco, R., P. Meena, and R. Tibrewala. 2021. “Buyback and Risk-sharing Contracts to Mitigate the Supply and Demand Disruption Risks.” European Journal of Industrial Engineering 15 (4): 550–581. https://doi.org/10.1504/EJIE.2021.116140.
  • Dong, L., Y. Qiu, and F. Xu. 2022. “Blockchain-enabled Deep-tier Supply Chain Finance.” Manufacturing & Service Operations Management 25 (6): 1990–2370.
  • Dong, L., and B. Tomlin. 2012. “Managing Disruption Risk: The Interplay Between Operations and Insurance.” Management Science 58 (10): 1898–1915. https://doi.org/10.1287/mnsc.1120.1524.
  • Donovan, J. 2021. “Financial Reporting and Entrepreneurial Finance: Evidence From Equity Crowdfunding.” Management Science 67 (11): 7214–7237. https://doi.org/10.1287/mnsc.2020.3810.
  • Dowling, M., C. O'gorman, P. Puncheva, and D. Vanwalleghem. 2019. “Trust and Sme Attitudes Towards Equity Financing Across Europe.” Journal of World Business 54 (6): 101003. https://doi.org/10.1016/j.jwb.2019.101003.
  • Gupta, V., B. He, and S. Sethi. 2015. “Contingent Sourcing Under Supply Disruption and Competition.” International Journal of Production Research 53 (10): 3006–3027. https://doi.org/10.1080/00207543.2014.965351.
  • Han, B., Y. Zhang, S. Wang, and Y. Park. 2023. “The Efficient and Stable Planning for Interrupted Supply Chain with Dual-sourcing Strategy: a Robust Optimization Approach Considering Decision Maker's Risk Attitude.” Omega 115: 102775. https://doi.org/10.1016/j.omega.2022.102775.
  • He, L., Y. Rong, and Z. Shen. 2020. “Product Sourcing and Distribution Strategies Under Supply Disruption and Recall Risks.” Production and Operations Management 29 (1): 9–23. https://doi.org/10.1111/poms.13065.
  • Hendricks, K., and V. Singhal. 2005. “An Empirical Analysis of the Effect of Supply Chain Disruptions on Long-run Stock Price Performance and Equity Risk of the Firm.” Production and Operations Management 14 (1): 35–52. https://doi.org/10.1111/j.1937-5956.2005.tb00008.x.
  • Hosseini, S., N. Morshedlou, D. Ivanov, M. Sarder, K. Barker, and A. Al Khaled. 2019. “Resilient Supplier Selection and Optimal Order Allocation Under Disruption Risks.” International Journal of Production Economics 213: 124–137. https://doi.org/10.1016/j.ijpe.2019.03.018.
  • Hou, J., A. Zeng, and L. Zhao. 2010. “Coordination with a Backup Supplier Through Buy-back Contract Under Supply Disruption.” Transportation Research Part E: Logistics and Transportation Review 46 (6): 881–895. https://doi.org/10.1016/j.tre.2010.03.004.
  • Hu, B., and D. Kostamis. 2015. “Managing Supply Disruptions when Sourcing From Reliable and Unreliable Suppliers.” Production and Operations Management 24 (5): 808–820. https://doi.org/10.1111/poms.12293.
  • Huang, X. 2022. “Financing Disruptive Suppliers: Payment Advance, Timeline, and Discount Rate.” Production and Operations Management 31 (3): 1115–1134. https://doi.org/10.1111/poms.13597.
  • Ivanov, D., and A. Dolgui. 2020. “Viability of Intertwined Supply Networks: Extending the Supply Chain Resilience Angles Towards Survivability. A Position Paper Motivated by COVID-19 Outbreak.” International Journal of Production Research 58 (10): 2904–2915. https://doi.org/10.1080/00207543.2020.1750727.
  • Kamalahmadi, M., M. Shekarian, and M. Mellat Parast. 2022. “The Impact of Flexibility and Redundancy on Improving Supply Chain Resilience to Disruptions.” International Journal of Production Research 60 (6): 1992–2020. https://doi.org/10.1080/00207543.2021.1883759.
  • Kilpatrick, J., and L. Barter. 2020. COVID-19: Managing Supply Chain Risk and Disruption. Toronto, ON, Canada: Deloitte.
  • Kouvelis, P., and J. Li. 2008. “Flexible Backup Supply and the Management of Lead-time Uncertainty.” Production and Operations Management 17 (2): 184–199. https://doi.org/10.3401/poms.1080.0015.
  • Lee, C.-C., C.-C. Lee, and S. Xiao. 2021. “Policy-related Risk and Corporate Financing Behavior: Evidence From Chinas Listed Companies.” Economic Modelling 94: 539–547. https://doi.org/10.1016/j.econmod.2020.01.022.
  • Lücker, F., S. Chopra, and R. Seifert. 2021. “Mitigating Product Shortage Due to Disruptions in Multi-stage Supply Chains.” Production and Operations Management 30 (4): 941–964. https://doi.org/10.1111/poms.13286.
  • Masulis, R., P. Pham, and J. Zein. 2020. “Family Business Group Expansion Through Ipos: The Role of Internal Capital Markets in Financing Growth While Preserving Control.” Management Science 66 (11): 5191–5215. https://doi.org/10.1287/mnsc.2019.3418.
  • Mehrotra, M., and W. Schmidt. 2021. “The Value of Supply Chain Disruption Duration Information.” Production and Operations Management 30 (9): 3015–3035. https://doi.org/10.1111/poms.13415.
  • Myers, S., and N. Majluf. 1984. “Corporate Financing and Investment Decisions when Firms Have Information that Investors Do Not Have.” Journal of Financial Economics 13 (2): 187–221. https://doi.org/10.1016/0304-405X(84)90023-0.
  • Niu, B., K. Chen, L. Chen, C. Ding, and X. Yue. 2021. “Strategic Waiting for Disruption Forecasts in Cross-border E-commerce Operations.” Production and Operations Management 30 (9): 2840–2857. https://doi.org/10.1111/poms.13371.
  • Niu, B., J. Li, J. Zhang, H. Cheng, and Y. Tan. 2019. “Strategic Analysis of Dual Sourcing and Dual Channel with An Unreliable Alternative Supplier.” Production and Operations Management 28 (3): 570–587. https://doi.org/10.1111/poms.12938.
  • Noe, T., M. Rebello, and T. Rietz. 2012. “Product Market Efficiency: The Bright Side of Myopic, Uninformed, and Passive External Finance.” Management Science 58 (11): 2019–2036. https://doi.org/10.1287/mnsc.1120.1534.
  • Papachristos, I., and D. Pandelis. 2022. “Newsvendor Models with Random Supply Capacity and Backup Sourcing.” European Journal of Operational Research 303 (3): 1231–1243. https://doi.org/10.1016/j.ejor.2022.03.036.
  • Paul, S., R. Sarker, and D. Essam. 2014. “Real Time Disruption Management for a Two-stage Batch Production–inventory System with Reliability Considerations.” European Journal of Operational Research 237 (1): 113–128. https://doi.org/10.1016/j.ejor.2014.02.005.
  • Ritchken, P., and Q. Wu. 2021. “Capacity Investment, Production Flexibility, and Capital Structure.” Production and Operations Management 30 (12): 4593–4613. https://doi.org/10.1111/poms.13253.
  • Saghafian, S., and M. Van Oyen. 2016. “Compensating for Dynamic Supply Disruptions: Backup Flexibility Design.” Operations Research 64 (2): 390–405. https://doi.org/10.1287/opre.2016.1478.
  • Schmitt, A. 2011. “Strategies for Customer Service Level Protection Under Multi-echelon Supply Chain Disruption Risk.” Transportation Research Part B: Methodological 45 (8): 1266–1283. https://doi.org/10.1016/j.trb.2011.02.008.
  • Shan, X., S. Xiong, and C. Zhang. 2023. “Mitigating Supply Disruption Risks by Diversifying Competing Suppliers and Using Sales Effort.” International Journal of Production Economics 255: 108637. https://doi.org/10.1016/j.ijpe.2022.108637.
  • Silbermayr, L., and S. Minner. 2014. “A Multiple Sourcing Inventory Model Under Disruption Risk.” International Journal of Production Economics 149: 37–46. https://doi.org/10.1016/j.ijpe.2013.03.025.
  • Suryawanshi, P., and P. Dutta. 2022. “Optimization Models for Supply Chains Under Risk, Uncertainty, and Resilience: A State-of-the-art Review and Future Research Directions.” Transportation Research Part E: Logistics and Transportation Review 157: 102553. https://doi.org/10.1016/j.tre.2021.102553.
  • Tang, S., H. Gurnani, and D. Gupta. 2014. “Managing Disruptions in Decentralized Supply Chains with Endogenous Supply Process Reliability.” Production and Operations Management 23 (7): 1198–1211. https://doi.org/10.1111/poms.12160.
  • Timonina-Farkas, A., R. Glogg, and R. Seifert. 2022. “Limiting the Impact of Supply Chain Disruptions in the Face of Distributional Uncertainty in Demand.” Production and Operations Management 31 (10): 3788–3805. https://doi.org/10.1111/poms.13781.
  • Tunca, T., and W. Zhu. 2018. “Buyer Intermediation in Supplier Finance.” Management Science 64 (12): 5631–5650. https://doi.org/10.1287/mnsc.2017.2863.
  • Wan, X., Z. Teng, Z. Zhang, X. Liu, and Z. Du. 2023. “Equity Financing Risk Assessment Based on PLTS-ER Approach in Marine Ranching From the Ecological and Circular Economy Perspectives.” Annals of Operations Research 1–46.
  • Wang, Y., W. Gilland, and B. Tomlin. 2010. “Mitigating Supply Risk: Dual Sourcing Or Process Improvement.” Manufacturing & Service Operations Management 12 (3): 489–510. https://doi.org/10.1287/msom.1090.0279.
  • Wang, Y., and S. Webster. 2022. “Product Flexibility Strategy Under Supply and Demand Risk.” Manufacturing & Service Operations Management 24 (3): 1779–1795. https://doi.org/10.1287/msom.2021.1037.
  • Wang, C., and Z. Yin. 2018. “Using Backup Supply with Responsive Pricing to Mitigate Disruption Risk for a Risk-averse Firm.” International Journal of Production Research 56 (17): 5660–5676. https://doi.org/10.1080/00207543.2018.1427901.
  • Wang, J., L. Zhao, and A. Huchzermeier. 2021. “Operations-finance Interface in Risk Management: Research Evolution and Opportunities.” Production and Operations Management 30 (2): 355–389. https://doi.org/10.1111/poms.13269.
  • Wu, X., and Z. Wang. 2005. “Equity Financing in a Myers–majluf Framework with Private Benefits of Control.” Journal of Corporate Finance 11 (5): 915–945. https://doi.org/10.1016/j.jcorpfin.2004.04.001.
  • Xie, J., and D. Chu. 2017. “Auto Parts Maker Seeks Government Leniency Over Illegal Shanghai Supplier.” Global Times.
  • Xing, W., S. Ma, X. Zhao, and L. Liu. 2022. “Operational Hedging Or Financial Hedging? Strategic Risk Management in Commodity Procurement.” Production and Operations Management 31 (8): 3233–3263. https://doi.org/10.1111/poms.13748.
  • Xu, S., X. Zhang, L. Feng, and W. Yang. 2020. “Disruption Risks in Supply Chain Management: a Literature Review Based on Bibliometric Analysis.” International Journal of Production Research 58 (11): 3508–3526. https://doi.org/10.1080/00207543.2020.1717011.
  • Yang, Z., G. Aydın, V. Babich, and D. Beil. 2009. “Supply Disruptions, Asymmetric Information, and a Backup Production Option.” Management Science 55 (2): 192–209. https://doi.org/10.1287/mnsc.1080.0943.
  • Yang, H., W. Zhuo, and L. Shao. 2017. “Equilibrium Evolution in a Two-echelon Supply Chain with Financially Constrained Retailers: The Impact of Equity Financing.” International Journal of Production Economics 185: 139–149. https://doi.org/10.1016/j.ijpe.2016.12.027.
  • Yi, Z., Y. Wang, and Y. Chen. 2021. “Financing An Agricultural Supply Chain with a Capital-constrained Smallholder Farmer in Developing Economies.” Production and Operations Management 30 (7): 2102–2121. https://doi.org/10.1111/poms.13357.
  • Young, B. 2012. Personal Interview on February 2.
  • Zeng, A., and Y. Xia. 2015. “Building a Mutually Beneficial Partnership to Ensure Backup Supply.” Omega 52: 77–91. https://doi.org/10.1016/j.omega.2014.10.008.
  • Zheng, M., S. Dong, Y. Zhou, and T.-M. Choi. 2023. “Sourcing Decisions with Uncertain Time-dependent Supply From An Unreliable Supplier.” European Journal of Operational Research 308 (3): 1365–1379. https://doi.org/10.1016/j.ejor.2022.11.021.
  • Zheng, Y., Y. Zhao, and X. Meng. 2021. “Market Entrance and Pricing Strategies for a Capital-constrained Remanufacturing Supply Chain: Effects of Equity and Bank Financing on Circular Economy.” International Journal of Production Research 59 (21): 6601–6614. https://doi.org/10.1080/00207543.2020.1821926.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.