Two views of supply chain resilience

Abstract

ABSTRACT The purpose of this paper is to explore adaptation-based and stability-based views of supply chain resilience to analyse what insights these different perspectives, individually and collectively, offer for theory and practice. In the stability-based view, resilience is triggered by disruptions and performance deviations to return to some ‘normal’ states. This view accounts for known-known uncertainty. The adaptation-based view shifts the focus from avoiding oscillations and recovering some stable states toward proactive adaptation and performance persistence. The adaptation-based view aims at designing structurally adaptable networks with process flexibility and actively used redundancy. It considers resilience from the value-creation perspective accounting for unknown-unknown uncertainties. Stability-based approach views resilience as an outcome or quantity. Adaptation-based approach considers resilience as a property or quality. A combination of stability- and adaptation-based approaches is imperative for building a strong supply chain immunity through an integration of general protection and adaptability. These approaches complement each other depending on the knowledge of and attitude to uncertainty by decision-makers. A combination of the two views helps consider resilience both as a quantity to measure how sick the supply chain is and to understand how the resilience comes about to ensure the quality of the network health and viability.