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Natural disasters, PC supply chain and corporate performance

journal contribution
posted on 2023-06-09, 08:04 authored by Saileshsingh Gunessee, Nachiappan SubramanianNachiappan Subramanian, Kun Ning
Purpose – This paper provides quantitative evidence of natural disasters’ effect on corporate performance and studies the mechanisms through which the supply chain moderates and mediates the link. Design/methodology/approach – Using two major natural disasters as quasiexperiment, namely the 2011 Japanese earthquake-tsunami (JET) and Thai flood (TF), and data over the period 2010Q1-2013Q4, effect of these events on end assemblers’ performance is studied, with a focus on the personal computer (PC) supply chain. The moderating influence of delivery and sourcing – as supply chain flexibility and agility – are examined through end assemblers’ and suppliers’ inventory. The suppliers’ mediating role is captured as disruption in obtaining PC components through their sales. Findings – Only JET had any negative effect, further quantified as short-term and long-term. The TF instead portrays an insignificant but positive aftermath, which is construed as showing learning from experience and adaptability following JET. Inventory matters, but differently for the two events, and suppliers only exhibit a moderating influence on the assemblers’ disaster-performance link. Originality/value – Natural disasters, as catastrophic vulnerabilities, are distinct from other vulnerabilities in that they are hard to predict and have significant impact. Since little is known about the impact of natural disasters on firm performance and how supply chain mechanisms moderate or mediate their impact, they should be distinctly modelled and empirically studied from other vulnerabilities. This paper sheds light on supply chain resilience to such events with the role of dynamic capabilities.

History

Publication status

  • Published

File Version

  • Accepted version

Journal

International Journal of Operations and Production Management

ISSN

0144-3577

Publisher

Emerald

Issue

1

Volume

38

Page range

129-148

Department affiliated with

  • Management Publications

Full text available

  • Yes

Peer reviewed?

  • Yes

Legacy Posted Date

2017-09-25

First Open Access (FOA) Date

2018-02-21

First Compliant Deposit (FCD) Date

2017-09-25

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