Supply chain resilience to low-/high-impact disruptions: the influence of absorptive capacity

Abstract

PurposeThe lean and global character of supply networks today opens supply chains to potential disruptions, especially in volatile environments. Most disruptions are of relatively low potential impact; however, firms also occasionally face high-impact disruptions that may even threaten survival. This study applies and extends absorptive capacity concepts to organize resilience capabilities identified in the literature and to examine whether capabilities that provide low-impact resilience are different from those that provide high-impact resilience. A second and related objective is to evaluate whether low-impact resilience supports high-impact resilience through “learning by experience.”Design/methodology/approachSurvey and industry data are used to understand capabilities involved with achieving both low-impact resilience and high-impact resilience.FindingsThe results of our analysis of survey and industry data uncover significant complex interactions in the effects of capabilities and volatility on resilience; suggesting that different absorptive capacity capabilities are related to low-impact resilience and high-impact resilience, respectively, and these effects depend on industry context. Moderating influences of exploitation capability and environmental volatility are consistent with a “learning by experience” explanation of the association of low-impact resilience to high-impact resilience.Originality/valueThis study thus provides a unifying framework with which to consider resiliency capabilities. Further, it answers a question raised in prior research, and it extends our understanding of important relationships between capabilities for different levels of resilience.