Abstract

In this paper we explore how a firm can develop disaster immunity—the capability to manage disaster-through the exploitation of market acuity and supply network partnerships. We use the hierarchy of capabilities framework and a social capital lens to view partnerships wherein a service supply network member’s market acuity can create and leverage operational partnership (fluid partnering), and strategic partnership (relational partnering) to enhance disaster immunity. Results of our empirical analysis indicate that the influence of market acuity on the level of disaster immunity is mediated by supply network partnering and innovation. Moreover, our results confirm that building disaster immunity can have a significant positive influence on the performance of service firms.

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