When the supply chain breaks: strategies for the chip shortage

Abstract

PurposeThe purpose of this paper is to propose a political economy framework for strategic supply chain decisions by identifying lessons from the global chip shortage.Design/methodology/approachGlobal supply chains have been viewed as holistic political economies because each supply chain is more important than the individual buyer–supplier relationships that comprise it.FindingsEach supply chain is a combination of many different vendor–supplier relationships that seem independent but are actually dependent on one another.Originality/valueWith significant geopolitical shifts, it has become necessary holistically consider the cultural, sociopolitical and economic conditions that surround supply chains. This points attention to managing the entire supply chain, rather than the immediate buyer–supplier relationship at hand.