Supply Chain Complexity and Traceability in Adverse Events Revisited: A COVID-19 Perspective

Abstract

Previous research regarding complexity, traceability, and adverse events in supply chains has examined the avoidance of adverse events or the traceability of adverse events. An earlier article regarding the influence of supply network complexity on traceability of adverse events offered propositions regarding the relationships among complexity, traceability, and transparency. Utilizing covariance-based structural equation modeling techniques, we analyze data from nonfood manufacturers, gathered during the COVID-19 pandemic disruption (Summer of 2021), and test three of the propositions considering an actual catastrophic adverse event. Results are analyzed through the lens of event system theory and contingent resource-based view. In addition, we expand the model by including the variable information sharing. The results indicate that in the absence of information sharing as a mediator in the model, complexity positively impacts transparency and traceability, which contradicts some findings in the literature. When information sharing is included in the model as a mediator, the results reveal that information sharing partially mediates the complexity/transparency relationship and information sharing fully mediates the complexity/traceability relationship. We offer possible reasons for the difference from previous findings. This provides insights for companies that necessarily maintain a certain degree of complexity of their supply chains due to the nature of their products or production processes.