To err is human: Exploratory multilevel analysis of supply chain delivery delays

Abstract

ABSTRACTWe examine the impact of human errors by front‐line supply chain employees on delivery delays. We build on normal accident theory (NAT), a multilevel theory describing the relationship between a firm's latent conditions (systemic managerial, technology, and social factors) and human errors. Latent conditions can have the unintended consequence of intensifying the impact of a human error, thus, we hypothesize a moderating effect of latent conditions on the relationship between errors and delivery delays. Hypotheses are tested using archival shipment data provided by a Fortune 500 company and archival carrier violations data. A multilevel design, with 299,399 shipments (level 1) nested within 97 carriers (level 2), was tested using mixed effects regression modeling. The results indicated that both dispatcher and driver errors were related to the probability of a late delivery, and that dispatcher errors were associated with longer delays. The moderating effects of several carrier latent conditions were significant and positive, indicating that both types of errors were more strongly associated with the likelihood of late delivery and that dispatcher errors were associated with longer delays when moderated by carrier latent conditions. The results are discussed from the perspective of NAT and technology management, developing prescriptions, and suggesting opportunities for future research.