Retail Supply Chain Risk and Disruption: A Behavioral Agency Approach

Abstract

AbstractRelationships between consumers and retailers are frequently the subject of studies in the context of operations management. The traditional agency theory is widespread, especially in the principal–agent relationship. This chapter describes retail consumer behavior during the COVID-19 pandemic and the unexpected consumer demands experienced by retailers from the perspective of behavioral agency theory. This chapter discusses that this shift in the retail supply chain can be explained by the behavioral agency theory, above all because of its mitigation mechanisms. Supply chain disruption is also discussed by pointing out the main activities of retailers and consumers and the respective mitigation mechanisms they adopt. This chapter contributes to the evolution of the supply chain studies’ field by providing analyses from the retail supply chain debate about risk and disruption implications in the context of the COVID-19 pandemic. It also helps broaden the applicability of the behavioral agency theory in operations and supply chain management.