Natural disasters, PC supply chain and corporate performance

Gunessee, Saileshsingh, Subramanian, Nachiappan and Ning, Kun (2017) Natural disasters, PC supply chain and corporate performance. International Journal of Operations and Production Management. ISSN 0144-3577 (Accepted)

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Abstract

Purpose – This paper provides quantitative evidence of natural disasters’ effect on corporate performance and studies the mechanisms through which the supply chain
moderates and mediates the link.

Design/methodology/approach – Using two major natural disasters as quasiexperiment, namely the 2011 Japanese earthquake-tsunami (JET) and Thai flood (TF),
and data over the period 2010Q1-2013Q4, effect of these events on end assemblers’ performance is studied, with a focus on the personal computer (PC) supply chain. The
moderating influence of delivery and sourcing – as supply chain flexibility and agility – are examined through end assemblers’ and suppliers’ inventory. The suppliers’
mediating role is captured as disruption in obtaining PC components through their sales.

Findings – Only JET had any negative effect, further quantified as short-term and long-term. The TF instead portrays an insignificant but positive aftermath, which is
construed as showing learning from experience and adaptability following JET. Inventory matters, but differently for the two events, and suppliers only exhibit a
moderating influence on the assemblers’ disaster-performance link.

Originality/value – Natural disasters, as catastrophic vulnerabilities, are distinct from
other vulnerabilities in that they are hard to predict and have significant impact. Since little is known about the impact of natural disasters on firm performance and how supply chain mechanisms moderate or mediate their impact, they should be distinctly modelled and empirically studied from other vulnerabilities. This paper sheds light on
supply chain resilience to such events with the role of dynamic capabilities.

Item Type: Article
Schools and Departments: School of Business, Management and Economics > Business and Management
Depositing User: Nachiappan Subramanian
Date Deposited: 25 Sep 2017 08:59
Last Modified: 25 Sep 2017 10:11
URI: http://sro.sussex.ac.uk/id/eprint/70329

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