The missing link in disruption management research: coping

Abstract

The COVID-19 pandemic made it clear that the impact of supply chain disruptions on different organizations may vary widely. Even if different levels of capabilities (agility, adaptability, etc.) may have contributed to the differential in outcomes, organizations need to learn how to harness their capabilities effectively in the face of disruptions. Although there is vast literature on supply chain disruption management, risk management, and resilience, we are not aware of any theory that comprehensively explains the decision-making process for managing disruptions. We argue that coping theory can explain how organizations may channelize resources based on two stages of appraisal to handle long- and short-term disruptions. Borrowing from psychology, we adapt coping theory to disruption management for any organization in any industry. In this paper, we demonstrate how supply chain coping strategies may explain outcomes of several organizations from different industries during the COVID-19 pandemic. We argue that organizations may sustain and even thrive if they adopt the right coping strategies in their context. We present our thesis using the following three themes: (1) We first identify potential demand trajectories organizations may follow during and after the pandemic, (2) We explain how coping strategies adopted by organizations may impact these trajectories, and (3) We present a framework to help the decision makers understand potential positive impact the coping strategies may bring to their organizations in future crises.