Abstract
Background: The coronavirus disease 2019 (COVID-19) pandemic has opened the world’s eyes to the impact that supply chain disruptions have on our society. Supply chain disruptions can result in various long-term effects, of which reputational risk is one of the biggest. A good reputation can create value for all stakeholders of a firm, however it can also expose a firm to risk. Reputational risk has been extensively studied in supply chain management; however, the management of reputational risk during supply chain disruption recovery (SCDR) has been neglected. Objective: This study explores reputational risk management during SCDR, between a logistics triad consisting of third party logistics providers (3PLs), their upstream suppliers and downstream customers within a South African context. Method: A generic qualitative design was employed to collect data from five logistics triads using semi-structured interviews. Results: The study found that reputational risk has a predominantly positive influence on the SCDR process. Furthermore, the study expands on existing literature by identifying additional approaches to manage corporate reputation during SCDR not evident in literature. These approaches include the use of control centres and involvement of the key account manager. Conclusion: This study creates awareness for the importance of reputational risk during SCDR and also provides managers with valuable insight into how reputational risk should be managed during SCDR.
Highlights
Recent global events such as the coronavirus disease 2019 (COVID-19) pandemic, terrorist attacks, high-impact political affairs such as the United Kingdom’s (UK) Brexit and the trade wars between China and the United States of America (US) have emphasised the vulnerability of supply chains (Cohen & Kupferschmidt 2020:963; Gerschel, Martinez & Mejean 2020:7; Sáenz, Revilla & Acero 2018:2)
As far as could be determined, no studies exploring reputational risk in supply chain disruption recovery (SCDR) have been conducted. This generic qualitative study explores reputational risk management during SCDR, between a logistics triad consisting of 3PLs, their upstream suppliers and downstream customers within a South African context
The first level of sampling included the recruitment of the 3PL firms and the firms of their respective upstream suppliers and downstream customers and was conducted as follows: First, as the study required a triadic perspective, firms who did not form part of a direct relationship with the 3PL were excluded from the study
Summary
The coronavirus disease 2019 (COVID-19) pandemic has opened the world’s eyes to the impact that supply chain disruptions have on our society. Chain disruptions can result in various long-term effects, of which reputational risk is one of the biggest. A good reputation can create value for all stakeholders of a firm, it can expose a firm to risk. Reputational risk has been extensively studied in supply chain management; the management of reputational risk during supply chain disruption recovery (SCDR) has been neglected
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