This dissertation consists of three papers related to firms' resiliency to supply chain disruptions. The first paper seeks to evaluate the effects of supply chain disruptions on firms' performance by using a recent dataset of supply chain disruptions. To this end, we analyzed operating and stock market performances of over 300 firms that experienced a supply chain disruption during 2005 to the end of 2014. The results show that supply chain disruptions are still associated with a significant decrease in operating income, return on sales, return on assets, sales, and a negative performance in total assets. Supply chain disruptions are also associated with a significant negative abnormal stock return on the day of the supply chain disruption announcements. These results are in line with previous findings in the literature.
In the second paper, in order to provide a more detailed characterization of negative impacts of disruptions on firms' performance, we develop three complementary measures of system loss: the initial loss due to the disruption, the maximum loss, and the total loss over time. Then, we utilize the contingent resource-based view to evaluate the moderating effects of operational slack and operational scope on the relationship between the severity of supply chain disruptions and the three complementary measures of system loss. We find that maintaining certain aspects of operational slack and broadening business scope can affect these different measures of loss in different ways, although these effects are contingent on the disruptions' severity.
The third paper examines relationships between the origin of supply chain disruptions, firms' past experience, and the negative impacts of supply chain disruptions on firms' performance. This third study shows that the impact of external and internal supply chain disruptions on firms' performance can be different when firms do and do not have past experience with similar events. For example, the results show that past experience significantly decreases initial loss, recovery time, and total loss over time experienced by firms after internal disruptions, although past experience may not decrease initial loss, recovery time, and total loss over time in the case of external disruptions. / Ph. D. / Supply chain disruptions occur frequently in today’s complex and interdependent business environment. The Kumamoto earthquakes, Hanjin Shipping’s bankruptcy, and Hurricanes Harvey and Irma, are just a few events that led to major supply chain disruptions in the U.S. and other parts of the world in 2016 and 2017 alone. In this dissertation, we first use a recent dataset of supply chain disruptions to evaluate the effects of supply chain disruptions on firms' performance. The results show that supply chain disruptions are still associated with significant negative impacts on firms’ performance as they have been shown to be in previous studies of earlier datasets.
Next, we provide a broader assessment of supply chain disruptions’ impacts on firms’ performance. To accomplish this, we specifically consider the negative impacts with respect to three complementary metrics borrowed from the systems resilience literature: the initial loss, the maximum loss, and the total loss over time. The initial loss and maximum loss metrics evaluate different characteristics of the magnitude of a disruption’s impact on a firm’s performance, whereas total loss over time gives a broader measure of the overall effect of that disruption on that firm, over time. By adopting a more comprehensive view of firms’ performance through the use of such systems resilience concepts, we develop new and expanded inferences about how and when maintaining operational slack and broadening operational scope can benefit firms by helping to reduce the negative impacts of disruptions.
Finally, we study the relationships between the negative impacts of supply chain disruptions on firms’ performance, the origin of supply chain disruptions, and firms’ prior experience. The results show that the impact of internal and external supply chain disruptions on firms’ performance can be different when firms do and do not have past experience with similar events. In particular, the results show that past experience significantly decreases initial loss, recovery time, and total loss over time experienced by firms after internal disruptions. However, past experience may not decrease initial loss, recovery time, and total loss over time in the case of external disruptions.
| Identifer | oai:union.ndltd.org:VTETD/oai:vtechworks.lib.vt.edu:10919/96311 |
| Date | 16 July 2018 |
| Creators | Baghersad, Milad |
| Contributors | Management, Zobel, Christopher W., Khansa, Lara Z., Russell, Roberta S., Seref, Onur, Wiens, Marcus |
| Publisher | Virginia Tech |
| Source Sets | Virginia Tech Theses and Dissertation |
| Detected Language | English |
| Type | Dissertation |
| Format | ETD, application/pdf |
| Rights | In Copyright, http://rightsstatements.org/vocab/InC/1.0/ |
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