Value of supply chain resilience: roles of culture, flexibility, and integration

Abstract

PurposeBuilding supply chain (SC) resilience is crucial for business continuity given the ever-changing environmental conditions. Based on the resource orchestration and organizational culture theories, the purpose of this paper is to investigate the business value of SC resilience with the consideration of the roles of internal integration (II) and external integration (EI), risk management culture (RMC) and SC flexibility (SCF).Design/methodology/approachThis study investigates how RMC, SCF and intra and interorganizational integration affect the performance of SC resilience. It collects primary and secondary data from 194 manufacturing firms listed in the Taiwan Stock Exchange and Taipei Exchange.FindingsResults validate the authors’ hypothesis that RMC, SCF and II improve the financial performance of firms through SC resilience efforts.Research limitations/implicationsThis study uses firms from Taiwan manufacturing industry, which might introduce country and industry bias.Practical implicationsThis study helps managers improve the financial performance of their SC resilience efforts by developing RMC, SCF, II and IE across functions and partner firms.Originality/valueThis study contributes to the literature by empirically testing the relationship between SC resilience and financial performance, and how the relationship is moderated by RMC, SCF, II and EI based on the theories of organizational culture and resource orchestration.