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The impact of supply base complexity on disruptions and performance: the moderating effects of slack and visibility

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  • Emma Brandon-Jones
  • Brian Squire
  • Yvonne G.T. Van Rossenberg

Abstract

In the face of increasing supply base complexity, organisations have to develop new ways to manage or mitigate risk. This paper investigates the impact of four dimensions of complexity on the frequency of disruptions and plant performance. We apply insights from organisational information processing theory to understand how organisations can mitigate against the impact of more frequent disruptions. We test the moderating effects of slack resources as a means to absorb the effects of disruptions and supply visibility as a means to improve the ability to handle disruptions. The model is tested with data from 264 supply chain management professionals. Our findings broadly support the original hypotheses and suggest that supply base complexity can increase the frequency of disruptions and reduce plant performance but that slack resources and visibility can help to mitigate the effects. The study offers valuable insights into the management of supply base complexity.

Suggested Citation

  • Emma Brandon-Jones & Brian Squire & Yvonne G.T. Van Rossenberg, 2015. "The impact of supply base complexity on disruptions and performance: the moderating effects of slack and visibility," International Journal of Production Research, Taylor & Francis Journals, vol. 53(22), pages 6903-6918, November.
    • Handle: RePEc:taf:tprsxx:v:53:y:2015:i:22:p:6903-6918
    DOI: 10.1080/00207543.2014.986296
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    Cited by:

    1. Essuman, Dominic & Bruce, Patience Aku & Ataburo, Henry & Asiedu-Appiah, Felicity & Boso, Nathaniel, 2022. "Linking resource slack to operational resilience: Integration of resource-based and attention-based perspectives," International Journal of Production Economics, Elsevier, vol. 254(C).
    2. Adhikary, Anirban & Sharma, Amalesh & Diatha, Krishna Sundar & Jayaram, Jayanth, 2020. "Impact of buyer-supplier network complexity on firms’ greenhouse gas (GHG) emissions: An empirical investigation," International Journal of Production Economics, Elsevier, vol. 230(C).
    3. Dixit, Vijaya & Verma, Priyanka & Tiwari, Manoj Kumar, 2020. "Assessment of pre and post-disaster supply chain resilience based on network structural parameters with CVaR as a risk measure," International Journal of Production Economics, Elsevier, vol. 227(C).
    4. Lin, Yongjia & Fan, Di & Shi, Xuanyi & Fu, Maggie, 2021. "The effects of supply chain diversification during the COVID-19 crisis: Evidence from Chinese manufacturers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    5. K. Katsaliaki & P. Galetsi & S. Kumar, 2022. "Supply chain disruptions and resilience: a major review and future research agenda," Annals of Operations Research, Springer, vol. 319(1), pages 965-1002, December.
    6. Azadegan, Arash & Modi, Sachin & Lucianetti, Lorenzo, 2021. "Surprising supply chain disruptions: Mitigation effects of operational slack and supply redundancy," International Journal of Production Economics, Elsevier, vol. 240(C).
    7. Pam Manhart & James K. Summers & Jennifer Blackhurst, 2020. "A Meta‐Analytic Review of Supply Chain Risk Management: Assessing Buffering and Bridging Strategies and Firm Performance," Journal of Supply Chain Management, Institute for Supply Management, vol. 56(3), pages 66-87, July.
    8. Melek Akın Ateş & Robert Suurmond & Davide Luzzini & Daniel Krause, 2022. "Order from chaos: A meta‐analysis of supply chain complexity and firm performance," Journal of Supply Chain Management, Institute for Supply Management, vol. 58(1), pages 3-30, January.
    9. Iftikhar, Anas & Purvis, Laura & Giannoccaro, Ilaria, 2021. "A meta-analytical review of antecedents and outcomes of firm resilience," Journal of Business Research, Elsevier, vol. 135(C), pages 408-425.
    10. Shu, Wenjun & Fan, Di, 2024. "How do firms perceive and react to extreme weather risk in their supply bases?," International Journal of Production Economics, Elsevier, vol. 268(C).
    11. Wagner, Stephan M. & Grosse-Ruyken, Pan Theo & Erhun, Feryal, 2018. "Determinants of sourcing flexibility and its impact on performance," International Journal of Production Economics, Elsevier, vol. 205(C), pages 329-341.
    12. Woo, Linda & Mun, Sung Gyun & Seo, Kwanglim, 2024. "Building resilience to crisis through slack resources: A longitudinal analysis of US hotels," Annals of Tourism Research, Elsevier, vol. 106(C).
    13. Ali, Imran & Arslan, Ahmad & Tarba, Shlomo & Mainela, Tuija, 2023. "Supply chain resilience to climate change inflicted extreme events in agri-food industry: The role of social capital and network complexity," International Journal of Production Economics, Elsevier, vol. 264(C).

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