Managing emergency situations with lean and advanced manufacturing technologies: an empirical study on the Rumbia typhoon disaster

Xiaodie Pu,Alain Yee-Loong Chong,Meng Chen,Zhao Cai,Kim Hua Tan

doi:10.1108/ijopm-12-2020-0887

Abstract

PurposeThis study aims to examine the impact of lean manufacturing (LM) on the financial performance of companies affected by emergency situations. It additionally explores the role of advanced manufacturing technologies (AMTs) in complementing LM to enhance financial performance in emergency and non-emergency situations.Design/methodology/approachBoth survey and archival data were collected from 219 manufacturing companies in China. With longitudinal data collected before and after an emergency situation (i.e. Typhoon Rumbia), regression analysis was conducted to investigate the effects of LM and AMTs on financial performance in different contexts.FindingsOur results reveal an inverted U-shaped relationship between LM and financial performance in the context of emergency. We also found that AMTs exerted a positive moderation effect on the inverted U-shaped relationship, indicating high levels of AMTs that mitigated the inefficiency of LM in coping with supply chain emergencies.Research limitations/implicationsThrough simultaneous investigation of LM and AMTs as bundles of practices and their fit with different contexts, this study takes a systems approach to fit that advances the application of contingency theory in the Operations Management literature to more complex patterns of fit.Originality/valueThis study illuminates how AMTs support LM practices in facilitating organizational performance in different contexts. Specifically, this study unravels the interaction mechanisms between AMTs and LM in influencing financial performance in emergency and non-emergency situations.

Highlights

The COVID-19 pandemic has significantly highlighted the vulnerability of the global supplyJo chain in the face of worldwide catastrophe
We found advanced manufacturing technologies (AMTs) exerted a positive moderation effect on the inverted U-shaped relationship, indicating high levels of AMTs mitigated the inefficiency of lean manufacturing (LM) in coping with supply chain emergency
We first examined the lo hypotheses related to firms unaffected by Rumbia and the hypotheses related to affected firms

Summary

Introduction

Jo chain in the face of worldwide catastrophe It is the culmination of emergency situations more frequently induced by climate hazards related to floods, heat waves, and storms, all of which na ur have risen almost 35% since the 1990s (IFRC, 2020). Such emergency situations have proven detrimental to manufacturing operations due to the disruptions in supply chain caused by closed ports, cancelled cargo flights, and postponed deliveries (Macdonald and Corsi, 2013). Such endeavors contradict the central tenet of lean manufacturing (LM) to minimize buffers (Shah and Ward, 2003; Fullerton et al, 2014).

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