Linking supply chain disruption to operational resilience: the roles of threat interpretation bias and disruption orientation

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Date
2023
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KNUST
Abstract
Operations are a peculiar sub-component of a firm that is a key value-creation activity that generates profits for firms and their supply chain partners. However, disruptive events have made it challenging for firms to maintain stable growth and performance. Anecdotal evidence and past research have identified that operational resilience helps firms thrive despite the disruptions that they may be encountering. However, research on supply chain disruption’s relationship with operational resilience is inconclusive as past studies have produced conflicting findings. This study, therefore, draws insights from threat rigidity theory to examine threat interpretation bias as a key intervening force to explain how supply chain disruption contributes to operational resilience. In addition, the study builds on organisational information processing theory to examine how disruption orientation reduces the strength of the relationship between supply chain disruption and operational resilience linkage through threat interpretation bias. These arguments are tested on primary data from 259 firms in ghana. The study employed covariance-based structural equation modelling in mplus 7.4 to analysis the data collected in the study. Findings from the study show that the association between supply chain disruption and operational resilience is negative but insignificant, while the supply chain disruption and operational resilience link is negatively mediated by threat interpretation bias. The results further indicates that under conditions of high levels of disruption orientation, the negative relationship between supply chain disruption and operational resilience through threat interpretation bias is weakened. The study suggests that supply chain managers should lessen their propensity to interpret disruptive occurrences as threats, encourage a participative approach by decentralising decision-making on disruptions and engage in increased information search when a disruption strikes.
Description
A thesis submitted to the department of supply chain and information systems, knust school of business, Kwame Nkrumah university of science and technology, in partial fulfilment of the requirements for the award of master of philosophy in logistics and supply chain management
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