Disruption causes and disruption management in supply chains with Chinese suppliers

Abstract

PurposeThe purpose of this paper is to identify and rank supply chain disruption causes for Western buying firms in the Chinese market; to identify supplier-relationship-specific mitigation strategies to avoid and resist such disruptions; and to develop and propose a framework of relational supply chain disruption management with Chinese suppliers.Design/methodology/approachTwo group exercises with 42 representatives from Western manufacturing buying firms and nine in-depth interviews were conducted. The group exercises applied the nominal group technique.FindingsThe authors identified and ranked 22 disruption causes in China for Western buying firms. Evaluating the five most urgent causes, 43 mitigation strategies could be identified that build on implementing strategic relationships with Chinese suppliers. A framework of relational supply chain disruption management for Western buying firms was developed with six propositions on primary constructs, mediators, and moderators, highlighting guanxi as a fundamental construct of relations within the Chinese culture.Research limitations/implicationsThe findings contribute to theory development at the intersection of risk management and culture. Quantitative testing of the proposed relationships in the framework is needed to derive more reliable conclusions.Practical implicationsThe study depicts how cultural differences between Chinese suppliers and Western buyers influence relational supply chain disruption management strategies. Using the study findings, managers of Western buying firms are informed regarding the most pressing disruption causes in the Chinese market and the value and strategic use of Chinese-supplier relationships.Originality/valueThe study provides a valuable contribution to the scant body of literature on disruption management in supply chains with Chinese suppliers. It contributes to our understanding of a successful risk management in the presence of cultural differences.