The effect of strategic alliances on supply chain resilience under external shocks

Abstract

ABSTRACT Enterprises opt for alliances to bolster supply chain resilience (SCR) against external shocks. Yet, studies on the impact of strategic alliances on SCR from an operations management perspective are still lacking. This study develops a supply chain network (SCN) cascading failure model that accommodates the presence of strategic alliances, drawing upon complex network theory and cascading failure theory. Using numerical simulations and empirical examples, the study delves into how enterprises can effectively enhance their SCR by forming strategic alliances and appropriately allocating redundant resources. The findings reveal that: (I) Strategic alliances enhance SCR; (II) When enterprises maintain a degree of redundancy, the strengthening effect of alliances on SCR is even more pronounced, particularly under significant external shocks; and (III) In the context of cascading failures, disruptions to smaller enterprises have a more pronounced effect on SCR. Notably, weak-weak alliances contribute more to SCR than strong-strong alliances.