Enhance or impair: how does downstream complexity influence supply chain resilience with reconciling effects of intelligent manufacturing?

Abstract

PurposeThe purpose of this paper is to examine the nuanced effects of downstream complexity on supply chain resilience, based on portfolio theory and normal accident theory. Intelligent manufacturing is considered to clarify their boundary conditions.Design/methodology/approachThe ordinary least squares regression was conducted, based on the data collected from 136 high-tech firms in China.FindingsHorizontal downstream complexity has a positive effect on supply chain resilience significantly, while the negative impact of vertical downstream complexity on supply chain resilience is not significant. Contingently, intelligent manufacturing plays a negative moderating role in the relationship between horizontal downstream complexity and supply chain resilience, while it positively moderates the relationship between vertical downstream complexity and supply chain resilience.Originality/valueThis study disentangles the nuanced effects of both horizontal and vertical downstream complexity on supply chain resilience, based on portfolio theory and normal accident theory. It also clarifies their boundary conditions by considering the focal firm's intelligent manufacturing level as the contingent factor.