Supplier Resilience Strategies During COVID-19
Supplier Resilience Strategies During COVID-19
https://www.emerald.com/insight/2516-7502.htm
CRR
3,3 Keeping key suppliers alive during
the COVID-19 pandemic: artificial
supply chain resilience and
282 supplier crisis response strategies
Received 27 August 2021 Mauro Fracarolli Nunes and Camila Lee Park
Revised 21 October 2021
Accepted 22 October 2021 EDC Paris Business School, Paris la defense, France, and
Ely Paiva
FGV-EAESP, Sao Paulo, Brazil
Abstract
Purpose – The study investigates supply chain leaders’ initiatives to support their partners in the early stages
of the coronavirus disease-2019 (COVID-19) pandemic, identifying measures taken to increase supply chain
resilience and their impact on the quality of supply chain relationships.
Design/methodology/approach – Two complementary phases are employed. First, an exploratory
approach is adopted, with the method of discourse analysis being employed in the identification of the supplier
crisis response strategies by S&P500’s top 30 firms. Second, two scenario-based experiments with 983
participants evaluated the impact of such strategies in two dimensions of supply chain relationships’ quality
(supplier satisfaction and supplier commitment).
Findings – Phase one revealed five initiatives’ groups adopted: safety measures, innovative tools, information
and knowledge sharing, supply chain finance and supply chain continuity. Phase two results indicate that
supplier crisis response strategies have positive effects on both supplier satisfaction and commitment. Data
also suggest that safety measures, innovative tools, and information and knowledge sharing strategies
negatively impacted supplier satisfaction and commitment, when compared with strategies adopted by other
buying firms competing for the same supplier. Supply chain continuity was negatively associated with both
dimensions when other buying firms implemented innovative tools and information and knowledge sharing
strategies with their suppliers, while supply chain finance yielded in no differences in comparison to strategies
adopted by competing buying firms.
Originality/value – The authors offer a theoretical typology for supply chain resilience (i.e. natural and
artificial), providing support for buying firms’ decisions regarding supplier crisis response strategies through
the strengthening of artificial supply chain resilience to increase the likelihood of vulnerable key suppliers’
survival.
Keywords Artificial supply chain resilience, Natural supply chain resilience, Supply chain management,
COVID-19, Supplier crisis response strategies, Crisis management
Paper type Research paper
Beyond a critical public health emergency (FDA, 2020), the COVID-19 crisis represented a
stress test for the global economy (WTO, 2020). The very measures taken to curb the
pandemic and avoid the saturation of health systems (WHO, 2020) left a legacy of economic
side effects (Boissay and Rungcharoenkitkul, 2020). Restriction imposed on citizens’
circulation and on the functioning of businesses (Reuters, 2021), for instance, led to a drastic
interruption in the flow of goods (PwC, 2020), causing the greatest economic, financial and
social shocks of the 21st century (OECD, 2020). As a result, companies found themselves
struggling to deal with a series of immediate and often acute changes (Accenture, 2020).
Among the many challenges faced by firms is the impact of the crisis on the structure of
modern business models, particularly those anchored on global supply chains (Alfaro and
Continuity & Resilience Review
Faia, 2020).
Vol. 3 No. 3, 2021
pp. 282-299
© Emerald Publishing Limited The authors would like to thank Professor Barbara B. Flynn for the valuable exchanges, suggestions,
2516-7502
DOI 10.1108/CRR-08-2021-0029 and comments that certainly enhanced our study.
In such an extreme scenario, the debate on supply chain resilience becomes even more Artificial
complex, as the actions adopted considerably vary. At the same time the relocation or the supply chain
substitution of suppliers were effective strategies for industries such as call centers (Jogani
et al., 2020), “keeping suppliers alive” was essential for many others. Depending on factors
resilience
such as the level of differentiation of purchased items (Ellram et al., 2013), the dependence of
buying firms on suppliers (Elking et al., 2017), buyer–supplier relationship tenures (Paulraj
and Chen, 2007) and supply chain integration (Wiengarten et al., 2019), the focus of many
supply chain strategies shifted from speed and minimization of costs (Christopher, 2016) to 283
survival (Ivanov and Dolgui, 2020). In this set, in addition to work for their own endurance,
supply chain leaders were pushed to intervene in the operations of their partners in order to
guarantee, or, at least, favor the continuation of their operations.
In light of the likelihood that the economic impacts of the COVID-19 crisis will last longer than
the pandemic itself (UNCTAD, 2020), understanding the nature and effects of practices
adopted by supply chain leaders early in the COVID-19 crisis should prove valuable. In times of
uncertainty and economic hardship, effective actions on that regard may avoid a string of
bankruptcies, increasing the chances that networks built over decades will withstand. In
particular, the investigation of strategies to provide small, yet critical, suppliers assistance to
weather the economic storm becomes urgent. Aiming to offer empirical evidence on that
direction, the present study is composed of two paired phases. The first consists of an exploratory
approach focused on the identification of the supplier crisis response strategies reported by large
companies to support their partners during the early stages of the COVID-19 crisis.
Building on five categories of initiatives identified (supply chain finance, supply chain
continuity, safety measures, innovative tools, and information and knowledge sharing), their
effects on the quality of relationships with supply chain partners are evaluated in the second
phase of the study. More specifically, through the conduction of two behavioral scenario-
based experiments with a total sample of 983 participants, the impact of each strategy
adopted is measured in terms of supplier satisfaction and supplier commitment. In addition,
the influence of initiatives employed by competitors is analyzed. These objectives translate
into the following research questions: (1) What measures have large companies adopted to
support their supply chain partners during the early stages of the COVID-19 crisis? (phase
one); and (2) what are the impacts of such measures in the quality of relationships between
large firms and the supported partners? (phase two).
Based on our discussions and results, we develop the theoretical concept of artificial
supply chain resilience, which comprises strategies for supplementing the natural resilience
of a supply chain. The study is organized as follows: the section ahead presents a literature
review on supply chain resilience, supply chain leadership, and supply chain relationship
management. Next, the two hypotheses of the study are developed. The following section, in
turn, details the method applied, continued by results, discussion, conclusion, and limitations
and suggestion for future research.
Literature review
By bringing together the concerning literatures on supply chain resilience, supply chain
leadership and supply chain relationship management, the following literature review
supports the development of the two hypotheses of the study. Along with the presentation of
the main arguments and debates issued from each of these sub-fields, the discussion is
intended to contribute to the construction of a contextualized and integrated understanding
of the topics addressed in the investigation.
Phase one
Materials and methods
The situation embodied by the COVID-19 crisis calls for immediately responsive research
methods, to tap into approaches used by supply chain leaders in real time. We propose a two-
phase exploratory approach. In phase one, we used a discourse analysis (Forray and
Woodilla, 2005; Grant and Iedema, 2005) approach. We selected the S&P 500’s 30 top firms,
and their websites were searched to identify whether they had adopted any supplier crisis
response strategies to help their direct or indirect suppliers during the COVID-19 pandemic
crisis. We found that 17 out of the 30 top firms did not indicate any information about how
they dealt with suppliers, while two only provided generic statements, such as “remarkable
efforts to restore our supply chain” (Apple, 2020) and “3 M North American respirator supply
chain running 24 h per day and seven days per week” (3M, 2020), without specifying concrete Artificial
strategies. For the remaining 11 firms, we compiled a list of supplier crisis response strategies supply chain
they applied during the COVID-19 crisis. We identified five broad categories: supply chain
finance, supply chain continuity, safety measures, innovative tools, and information and
resilience
knowledge sharing strategies. Table 1 summarizes the categories and supplier crisis
response strategies by firm.
287
Results and discussion
The exploratory phase of the study revealed that the implementation of pro-active strategies
to support suppliers did not figure among the priorities of all the 30 companies investigated.
The fact that some of them did not mention such concern suggests that the role that supply
chain leaders are expected to play is not yet fully understood, or, if so, it has not been
adequately incorporated. Such inaction, however, may be explained by factors that have not
been detected, such as the specific characteristics of the industries in question, or the sheer
lack of need to do so. It is possible, for example, that these specific firms are not significantly
dependent on their suppliers, with the resilience of their supply chains not representing an
essential aspect in their business models. As discussed earlier, in some cases, the substitution
of suppliers may be more attractive than the offering of support, at least from a pure economic
perspective. In other situations, companies may not neglect their partners, as in case a critical
supplier ceases to operate, the situation might have a detrimental impact for their own
continuity.
This is probably the case for the companies that disclosed their supplier crisis response
strategies in greater detail, with the five categories of pro-active actions identified being
themselves revealing. The implementation of supply chain finance mechanisms, for instance,
denotes a potentially high relevance of supply chain resilience for the leading firms, as the
transfer of financial resources may be the fastest and most efficient way to guarantee
suppliers’ survival in the short-term. Actions classified as supply chain continuity may have
a similar, yet more timely effect, mainly because the financial transfer is indirect (e.g. the non-
interruption of orders placing). In turn, safety measures showed to be more associated with
the combat to the immediate effects of the pandemic itself and not to its unpredicted side-
effects. Depending on the exposition of suppliers to the direct risks issued from the COVID-19
crisis, the focus on such issues may prove essential to their endurance. This may be more
evident to companies that are highly dependent on their workforce, where the use of robots
and automation is low or non-existent. Finally, innovation and knowledge sharing may work
both on the short and long-terms, possibly increasing the efficiency of suppliers’ operations
beyond the most acute moments of the crisis.
Building on these insights, phase two uses scenario-based experiments to assess the
expected impact of supplier crisis support strategies. Two experiments were conducted with
a total sample of 983 respondents, as further detailed ahead.
Phase two. Developing from the results pointed above, in phase two, we conducted two
scenario-based experiments, both of which described Firm A, based in the US, operating in 22
countries, having over 160,000 employees, and annual revenues exceeding $76 billion.
Respondents were asked to imagine they worked for Firm B, one of Firm A’s suppliers, and
were randomly assigned to manipulations in both studies. The first one carried six
manipulations, reflected in six different vignettes: one in which Firm A did not apply any
supplier crisis response strategy and five in which it applied a crisis response strategy
corresponding to one of the five groups identified in Phase One (i.e. supply chain finance,
supply chain continuity, safety measures, innovative tools, and information and knowledge
sharing). Thus, the first experiment tested the perceived effectiveness of each crisis response
strategy in isolation. In the second experiment, we examined the expected effect of various
CRR Supplier crisis response strategies reported
3,3 Supply chain Supply chain Innovative Information and
Firm finance continuity Safety measures tools knowledge sharing
American Accelerated
express payments
Boeing Provided safe Compiled
288 facilities for informative
visitors and documents on
suppliers governmental
Expected measures and
suppliers to programs
comply with
safety measures
(e.g. wearing
masks
Caterpillar Monitored Provided safe
supply chain facilities for
disruptions with visitors and
protocols to suppliers
diminish them
Cisco Provided guidance
for suppliers’ actions
Coca-Cola Respected Supported Expected Simplified Helped suppliers
payment timing supply chain suppliers to supplier getting back to
and supply continuity comply with compliance business by
chain financing safety measures with remote engaging public
program (e.g. wearing technology authorities and
masks) regulators
Provided safety Shared information
equipment to with suppliers
suppliers if
necessary
Home depot Supported
supply chain
continuity
Nike Supported
supply chain
continuity
Pfizer Supported
supply chain
continuity
United Created of Compiled
technologies supply chain informative
focused team documents on
governmental
measures and
programs
Shared information
Table 1. with suppliers and
Supplier crisis suppliers of
response strategies suppliers
during the COVID-19
pandemic crisis (continued )
Supplier crisis response strategies reported
Artificial
Supply chain Supply chain Innovative Information and supply chain
Firm finance continuity Safety measures tools knowledge sharing resilience
Verizon Expected Shared information
suppliers to with suppliers
comply with
safety measures 289
(e.g. wearing
masks)
Walgreens Supported
supply chain
continuity and
safety measures
expectations Table 1.
crisis response strategies, relative to crisis response strategies applied by other buying firms
in the same industry. The base scenario remained the same, and the manipulations used
groups of strategies employed by other buying firms. For each strategy used by Firm A, there
were vignettes describing each of the other strategies used by other firms competing for the
same supplier. The two-by-two combination of the five types of supplier crisis response
strategies generated 20 different vignettes for the second study (see Tables 2 and 3).
Participants also described the scenarios as realistic (X 5 5.63, t 5 33.740, p < 0.000),
believable (X 5 5.59, t 5 32.292, p < 0.000) and likely (X 5 5.51, t 5 28.766, p < 0.000). The
manipulation checks indicated that the respondents understood their role as Firm A’s
supplier (X 5 5.55, t 5 26.193, p < 0.000) and Firm A’s large size (X 5 6.00,
t 5 39.977, p < 0.000).
Other Supply chain – Scenario 2,1 Scenario Scenario 4,1 Scenario 5,1
buying finance 3,1
firms’ Supply chain Scenario – Scenario Scenario 4,2 Scenario 5,2 291
Supplier continuity 1,2 3,2
crisis Safety measures Scenario Scenario 2,3 – Scenario 4,3 Scenario 5,3
response 1,3
strategy Innovative tools Scenario Scenario 2,4 Scenario – Scenario 5,4
1,4 3,4
Information Scenario Scenario 2,5 Scenario Scenario 4,5 –
and knowledge 1,5 3,5
sharing
Note(s): Example: Scenario 1,2; Upon the 2020 COVID-19 pandemic crisis, Firm A offered help to its suppliers,
among which is Firm B. In particular, Firm A sought to offer its suppliers financial support that included the
acceleration of payments and additional credit for those who needed the most; You also know that other
companies in the industry are helping suppliers with measures such as uninterrupted placing of orders, and the Table 3.
creation of multi-skilled business continuity teams to identify and solve suppliers’ problems, which have not Design of the second
been offered by Firm A experiment
Factor loadings
Measure First experiment Second experiment
Supplier satisfactiona
Dealings with firm a benefit my firm 0.82 0.83
I would be satisfied with dealings with firm A 0.86 0.87
Firm a is good to do business with 0.89 0.90
X (Std. Dev.) 6.039 (0.878) 5.503 (1.087)
Cronbach’s alpha 0.892 0.900
Composite reliability 0.892 0.900
AVE 0.734 0.751
Supplier commitmenta
I am interested in long-term alliances 0.83 0.85
I want to preserve the relationship with firm A 0.90 0.86
Buyers from firm a are considered partners 0.65 0.66
X (Std. Dev.) 5.939 (0.886) 5.597 (0.992)
Cronbach’s alpha 0.820 0.828
Composite reliability 0.840 0.835 Table 4.
AVE 0.640 0.632 Measurement analysis
Note(s): aAdapted from Ghijsen et al. (2010), 1 5 strongly disagree, 7 5 strongly agree of dependent variables
significant (X2 5 8.155, p 5 0.422), with X2/df of 1.014, indicating good fit. In both
experiments, the incremental indexes exceeded threshold values (first experiment:
NFI 5 0.978, IFI 5 0.985, CFI 5 0.985; second experiment: NFI 5 0.994, IFI 5 1.000,
CFI 5 1.000).
supplier satisfaction and supplier commitment at the p < 0.001 significance level, indicating
strong evidence in this direction. This indicates that respondents believe that implementing
supplier crisis response strategies during the pandemic crisis will have a positive effect on
both supplier satisfaction and supplier commitment, thus confirming Hypothesis 1.
Data from the second experiment (Tables 6 and 7) also confirm our Hypothesis 2,
indicating that safety measures, innovative tools, and information and knowledge sharing
strategies were negatively associated with supplier satisfaction and commitment, when
compared with strategies adopted by other buying firms competing for the same supplier.
For safety measures adopted by the company, supplier satisfaction scored X no strategy 5 6.28
when competitors applied no strategy, while its difference with the remaining variables were
statistically significant at p < 0.05 for X supply chain finance 5 5.66, X innovative tools 5 5.63,
X information and knowledge sharing 5 5.40, and at p < 0.01 for X supply chain continuity 5 5.43, while
supplier commitment scored X no strategy 5 6.13 with significant differences at p < 0.05 for
X supply chain finance 5 5.55, X supply chain continuity 5 5.50, X innovative tools 5 5.61, X information and
knowledge sharing 5 5.48. Innovative tools, in turn, scored X no strategy 5 6.14 for supplier
satisfaction, being statistically different at p < 0.01 in comparison to X supply chain
continuity 5 5.38 and at p < 0.05 to X supply chain finance 5 5.53, X safety measures 5 5.49, and
X information and knowledge sharing 5 5.58, and X no strategy 5 6.13 for supplier commitment, while
statistically different from all other strategies (X supply chain finance 5 5.66, X supply chain
continuity 5 5.50, X safety measures 5 5.61, and X information and knowledge sharing 5 5.48) at the p < 0.05
level. For information and knowledge sharing, differences in supplier satisfaction were
detected at the p < 0.001 level between X no strategy 5 6.08 and X safety measures 5 4.87, and
X innovative tools 5 5.49, and at the p < 0.05 level for X supply chain finance 5 5.19, and for supplier
commitment, significant differences at p < 0.01 for X safety measures 5 5.08, as well as at p < 0.05
for X supply chain finance 5 5.37. Supply chain continuity was negatively associated with
supplier satisfaction (X no strategy 5 6.06) and commitment (X no strategy 5 6.20) when other
buying firms implemented information and knowledge sharing strategies with their
suppliers also for both supplier satisfaction (X information and knowledge sharing 5 5.35) and
commitment (X information and knowledge sharing 5 5.45) at the p < 0.05 significance level, while
supply chain finance did not yield in significant differences when competitors applied
different strategies.
While results of the analysis in the first experiment are relatively intuitive (any supplier
crisis response strategy produces better outcomes than no strategy), the outcomes of
experiment two call for further consideration. Contrary to what might be initially expected,
Firm A’s supplier Other buying companies’ Supplier satisfaction Supplier commitment
Artificial
crisis response supplier crisis response Sig. Sig. supply chain
strategy strategy X (Std. dev.) Diff.1 X (Std. dev.) Diff.1 resilience
Supply chain 1 None 6.140 (0.934) – 6.128 (0.757) –
finance 2 supply chain continuity 5.696 (0.830) – 5.787 (0.828) –
3 safety measures 5.656 (1.153) – 5.656 (1.059) –
4 Innovative tools 5.616 (1.145) – 5.808 (0.816) – 293
5 Information and 5.813 (0.792) – 5.882 (0.686) –
knowledge sharing
F 5 2.251 F 5 2.034
Supply chain 1 None 6.061 (0.975) 5 6.205 (0.740) 5
continuity 2 supply chain finance 5.559 (0.982) – 5.666 (1.125) –
3 safety measures 5.802 (0.732) – 5.843 (0.733) –
4 Innovative tools 5.635 (1.360) – 6.597 (1.158) –
5 Information and 5.352* (1.072) 1 5.450* (1.171) 1
knowledge sharing
F 5 2.978* F 5 2.827*
Safety measures 1 None 6.283 (0.651) 2, 3, 4, 5 6.133 (0.721) 2, 3, 4, 5
2 supply chain finance 5.552** (0.989) 1 5.656* (0.730) 1
3 supply chain continuity 5.436** (1.172) 1 5.505* (1.056) 1
4 Innovative tools 5.636* (0.976) 1 5.616* (0.886) 1
5 Information and 5.400*** (1.081) 1 5.485* (1.103) 1
knowledge sharing
F 5 7.251*** F 5 4.395**
Innovative tools 1 None 6.144 (0.659) 2, 3, 4, 5 6.133 (0.721) 2, 3, 4, 5
2 supply chain finance 5.526* (1.084) 1 5.656* (0.730) 1
3 supply chain continuity 5.382** (1.018) 1 5.505* (1.056) 1
4 safety measures 5.489* (1.176) 1 5.616* (0.886) 1
5 Information and 5.580* (0.788) 1 5.485* (1.103) 1
knowledge sharing
F 5 7.251*** F 5 4.385**
Information and 1 None 6.076 (0.641) 2, 4 6.000 (0.644) 2, 4
knowledge sharing 2 supply chain finance 5.198* (1.311) 1 5.374* (1.063) 1
3 supply chain continuity 5.406 (1.217) – 5.593 (1.073) –
4 safety measures 4.862*** (1.449) 1 5.088** (1.393) 1
5 Innovative tools 5.494*** (0.999) – 5.551 (0.818) –
F 5 5.541*** F 5 3.918** Table 6.
Note(s): *p < 0.05, **p < 0.01, ***p < 0.001; 1Pairwise comparisons, using Tukey and Games–Howell tests, ANOVA results for
significant at p < 0.05 or less second experiment
the provision of supply chain finance was not perceived to be any more effective than the
other alternatives. This suggests that supply chain finance strategies are fundamentally
important to suppliers, not just during an acute disruption. Some of the relative findings are
also curious. For example, a supply chain continuity strategy is perceived as less important
when other buying firms offer information and knowledge sharing strategies. This may
underline the importance of supply chain leaders providing guidance to their suppliers. It was
also intriguing that the offering of safety measures was perceived as inferior when any other
supplier crisis response strategy was used by competing firms. This may reveal a greater
supplier risk tolerance during the crisis. These and the other outcomes suggest the existence
of a hierarchy of supplier crisis response strategies.
Still, the confirmation of hypotheses 1 and 2 may be particularly useful for managers, with
results indicating the need for more adapted crisis management strategies in supply chain
contexts. Regarding the evidence around the impacts of lead firms’ support on the quality of
CRR Other buying Supplier satisfaction Supplier commitment
3,3 Firm A’s supplier companies’ supplier
crisis response crisis response
strategy strategy B t VIF β t VIF
inter-firm relationship quality (H1), findings corroborate the idea that help offered upon
extreme moments may be greatly valued by those receiving it, mainly when the aid is critical
to the continuity of their operations. In increasingly competitive environments, the
maintenance of stable and fruitful relationships with suppliers may represent an
important source of differentiated performance, with the protection of supply chain
networks possibly leading to abnormal returns in the long run (i.e. competitive advantage).
This view also dialogues with the confirmation of the second hypothesis of the study, which
stresses the need for the support offered to be more generous than those granted by
competitors. Altogether, our results suggest that lead firms’ managers may consider
diminishing the use of bargaining power upon moments of acute crises, ideally substituting it
(maybe proportionally to the level of their supply chain leadership) by supplier crisis
response strategies.
It may be argued then that both the preservation of natural supply chain resilience and the
development of an artificial one may be critical to lead companies’ success. For natural
resilience this relates to powerful partners avoiding the use of their force upon periods of Artificial
crisis, ceasing to exert additional pressure on the already weakened suppliers. For artificial supply chain
resilience, in turn, the implementation of emergency measures may the expression of lead
firms’ determination to keep their supply chains alive and operating, regardless of the
resilience
difficulties faced by their smaller partners. The expected result of both attitudes is the
continuity of those in more sensitive situations and an enhanced resilience of the whole
system.
295
Conclusion
As discussed throughout the text, supply chain resilience can be both natural and artificial,
with objective measures being fundamental for the establishment of the latter. Despite
logical, the reasoning lacks empirical evidence, not only regarding the recognition of which
actions are taken by companies in this regard but also their effectiveness. In order to
contribute to a better understanding of the dynamics of these factors, the present study
sought to identify the initiatives effectively adopted by large companies to assist their supply
chain partners in the early stages of the COVID-19 crisis. Thus, claims from the 30 largest
companies composing the S&P 500 list were examined. This initial investigation revealed
that while some companies do not even mention offering support to their weaker partners,
others describe their initiatives in detail. Between these two extremes are the companies that
addressed the issue in a generic way, without actually discussing the measures they
implemented. The treatment of these data through the method of discourse analysis revealed
five groups of supplier crisis response strategies: supply chain finance, supply chain
continuity, safety measures, innovative tools, and information and knowledge sharing.
Based on this exploratory phase and on the discussion on the literature on supply chain
resilience, supply chain leadership and supply chain relationship management, two vignette-
based experiments were conducted in the testing of the hypothesis that (1) the use of supplier
crisis response strategies is expected to enhance inter-firm relationship quality, and (2) the
impact of a buyer’s supplier crisis response strategies is evaluated by key suppliers relative to
what other buyers are offering. In doing so, the effects of the five groups of supplier crisis
response strategies identified on supplier satisfaction and supplier commitment were
measured, as, together, the two constructs were considered to form a proxy of the quality of
supply chain relationships. Likewise, the outcomes of a firms’ actions in face of those of
another one competing for the same supplier were evaluated.
As discussed in the previous section, the confirmation of both hypotheses of the study
corroborates the view that supplier crisis response strategies indeed hold the potential to
enhance inter-firm relationship quality. Among other entailments, the confirmation of the
first hypothesis of the study suggests that pro-active measures constitute the building blocks
of artificial supply chain resilience. Similarly, the ratification of our second hypothesis
indicate that the power of the supplier crisis response strategies examined is relative,
meaning that they depend on the offers made by competing firms. Along with adding to the
understanding of the value of pro-active measures per se, finding contribute to the
comprehension of corporate competition within business-to-business contexts (i.e.
competition for the establishment of buyer–supplier relationships).
With the expectation that the economic effects of the COVID-19 crisis will be profound and
probably last longer than the pandemic itself, this research is useful in several ways. First, it
provides support for a buying firm’s decisions regarding supplier crisis response strategies,
enhancing artificial supply chain resilience and increasing the likelihood that vulnerable key
suppliers will survive. Artificial supply chain resilience strategies are also beneficial in that
they contribute to the maintenance of economic activity and job conservation. Our research
supports the adoption of similar strategies in the advent of future severe and unpredictable
CRR crises. Finally, by investigating the effectiveness of emergency measures taken during an
3,3 extreme crisis, it adds to the study of supply chain configurations.
References
3M (2020), “3M is addressing the COVID-19 pandemic from all angles and across all relevant
stakeholders”, 3M, available at: https://www.3m.com/3M/en_US/company-us/coronavirus/.
Accenture (2020), “Outmaneuver uncertainty: navigating the human and business impact of Covid-
19”, July 31, available at: https://www.accenture.com/us-en/about/company/coronavirus-
business-economic-impact.
Ahmed, M.U., Kristal, M.M., Pagell, M. and Gattiker, T.F. (2017), “Towards a classification of supply
chain relationships: a routine based perspective”, Supply Chain Management: An International
Journal, Vol. 22 No. 4, pp. 341-374.
Alfaro, L. and Faia, E. (2020), Pandemics Fragilities: the Double-Coincidence of a Halt in Hyper-
Specialized GVC and the Big-Dollar-Hunger, Working Paper, Harvard Business School.
Ambulkar, S., Blackhurst, J. and Grawe, S. (2015), “Firm’s resilience to supply chain disruptions: scale
development and empirical examination”, Journal of Operations Management, Vol. 33,
pp. 111-122.
Apple (2020), “Apple’s COVID-19 response”, Apple Statement, Vol. 13 March, available at: https://
www.apple.com/newsroom/2020/03/apples-covid-19-response/.
Bell, S. (2019), “Organisational resilience: a matter of organisational life and death”, Continuity and
Resilience Review, Vol. 1 No. 1, pp. 5-16.
Beth, S., Burt, D.N., Copacino, W., Gopal, C., Lee, H.L., Lynch, R.P. and Morris, S. (2003), “Supply chain
challenges. Building relationships”, Harvard Business Review, Vol. 81 No. 7, pp. 64-73.
Boissay, F. and Rungcharoenkitkul, P. (2020), “Macroeconomic effects of Covid-19: an early review.
BIS Bulletin, No. 7 - Bank of international settlement”, available at: https://www.bis.org/publ/
bisbull07.pdf.
Burnard, K.J. and Bhamra, R. (2019), “Challenges for organisational resilience”, Continuity and Artificial
Resilience Review, Vol. 1 No. 1, pp. 17-25.
supply chain
Chen, L., Li, T. and Zhang, T. (2021), “Supply chain leadership and firm performance: a meta-
analysis”, International Journal of Production Economics, Vol. 235, 108082.
resilience
Chopra, S. and Sodhi, M.S. (2004), “Supply-chain breakdown”, MIT Sloan Management Review, Vol. 46
No. 1, pp. 53-61.
Christopher, M. (2016), Logistics & Supply Chain Management, 4th ed., Prentice-Hall, Harlow. 297
Christopher, M. and Peck, H. (2004), “Building the resilient supply chain”, International Journal of
Logistics Management, Vol. 15 No. 2, pp. 1-13.
Coutu, D.L. (2002), “Resilience works”, Harvard Business Review, Vol. 80, pp. 46-52.
DeSmet, B. (2018), Supply Chain Strategy and Financial Metrics: the Supply Chain Triangle of Service,
Cost and Cash, Kogan Page Publishers, London.
D’Auria, G. and De Smet, A. (2020), Leadership in a Crisis: Responding to the Coronavirus Outbreak
and Future Challenges, McKinsey & Company, available at: https://www.mckinsey.com/
∼/media/mckinsey/business%20functions/organization/our%20insights/leadership%20in%
20a%20crisis%20responding%20to%20the%20coronavirus%20outbreak%20and%20future
%20challenges/leadership-in-a-crisis-responding-to-the-coronavirus-outbreak-and-future-
challenges-v3.pdf.
El Baz, J. and Ruel, S. (2020), “Can supply chain risk management practices mitigate the disruption
impacts on supply chains’ resilience and robustness? Evidence from an empirical survey in a
COVID-19 outbreak era”, International Journal of Production Economics, Vol. 233, p. 107972.
Elking, I., Paraskevas, J.P., Grimm, C., Corsi, T. and Steven, A. (2017), “Financial dependence, lean
inventory strategy, and firm performance”, Journal of Supply Chain Management, Vol. 3 No. 2,
pp. 22-38.
Ellram, L.M., Tate, W.L. and Feitzinger, E.G. (2013), “Factor-market rivalry and competition for supply
chain resources”, Journal of Supply Chain Management, Vol. 49 No. 1, pp. 29-46.
Essig, M. and Amann, M. (2009), “Supplier satisfaction: Conceptual basics and explorative findings”,
Journal of Purchasing and Supply Management, Vol. 15 No. 2, pp. 103-113.
FDA (2020), “U.S. Food and drug administration - ‘emergency use authorizations’”, available at:
https://www.fda.gov/medical-devices/emergency-situations-medical-devices/emergency-use-
authorizations.
Forray, J.M. and Woodilla, J. (2005), “Artefacts of management academe: a discourse analysis of
temporality in journal titles”, Time and Society, Vol. 14 Nos 2/3, pp. 323-339.
Garmezy, N. (1978), “Attentional processes in adult schizophrenia and in children at risk”, Journal of
Psychiatric Research, Vol. 14 No. 1, pp. 3-34.
Ghijsen, P.W.T., Semeijn, J. and Ernstson, S. (2010), “Supplier satisfaction and commitment: the role of
influence strategies and supplier development”, Journal of Purchasing and Supply Management,
Vol. 16, pp. 17-26.
Gorman, B. and Hoopes, L. (1999), “Hiring to build change capacity: the human resource role”, Human
Resource Planning, Vol. 22, pp. 8-10.
Gosling, J., Jia, F., Gong, Y. and Brown, S. (2017), “The role of supply chain leadership in the learning
of sustainable practice: toward an integrated framework”, Journal of Cleaner Production,
Vol. 140, pp. 239-250.
Grant, D. and Iedema, R. (2005), “Discourse analysis and the study of organizations”, Journal of the
Study of Discourse, Vol. 25 No. 1, pp. 37-66.
Hamel, G. and V€alikangas, L. (2003), “The quest for resilience”, Harvard Business Review, Vol. 81,
pp. 52-65.
CRR Ivanov, D. and Dolgui, A. (2020), “Viability of intertwined supply networks: extending the supply
chain resilience angles towards survivability. A position paper motivated by COVID-19
3,3 outbreak”, International Journal of Production Research, Vol. 58 No. 10, pp. 2904-2915.
Jia, F., Gong, Y. and Brown, S. (2019), “Multi-tier sustainable supply chain management: the role of
supply chain leadership”, International Journal of Production Economics, Vol. 217, pp. 44-63.
Jiang, Z.Z., Feng, G. and Yi, Z. (2021), “How should a capital-constrained servicizing manufacturer
search for financing? The impact of supply chain leadership”, Transportation Research Part E:
298 Logistics and Transportation Review, Vol. 145, 102162.
Jogani, R., Khan, N., Lala, W., Ramaa, R. and Van Kuiken, S. (2020), “How CIOs can work with
outsourcing providers to navigate the coronavirus crisis”, McKinsey, available at: https://www.
mckinsey.com/business-functions/mckinsey-digital/our-insights/how-cios-can-work-with-
outsourcing-providers-to-navigate-the-coronavirus.
Kembro, J., N€aslund, D. and Olhager, J. (2017), “Information sharing across multiple supply chain tiers:
a Delphi study on antecedents”, International Journal of Production Economics, Vol. 193,
pp. 77-86.
Kim, Y., Chen, Y.S. and Linderman, K. (2015a), “Supply network disruption and resilience: a network
structural perspective”, Journal of Operations Management, Vol. 33, pp. 43-59.
Kim, Y., Choi, T.Y. and Skilton, P.F. (2015b), “Buyer-supplier embeddedness and patterns of
innovation”, International Journal of Operations and Production Management, Vol. 35 No. 3,
pp. 318-345.
Lai, K.H., Cheng, T.C.E. and Yeung, A.C. (2005), “Relationship stability and supplier commitment to
quality”, International Journal of Production Economics, Vol. 96 No. 3, pp. 397-410.
Lekkakos, S.D. and Serrano, A. (2016), “Supply chain finance for small and medium sized enterprises:
the case of reverse factoring”, International Journal of Physical Distribution and Logistics
Management, Vol. 46 No. 4, doi: 10.1108/IJPDLM-07-2014-0165.
Lotfi, M. and Larmour, A. (2021), “Supply chain resilience in the face of uncertainty: how horizontal
and vertical collaboration can help?”, Continuity and Resilience Review, Vol. ahead-of-print
No. ahead-of-print, doi: 10.1108/CRR-04-2021-0016.
Mokhtar, A.R.M., Genovese, A., Brint, A. and Kumar, N. (2019a), “Supply chain leadership: a
systematic literature review and a research agenda”, International Journal of Production
Economics, Vol. 216, pp. 255-273.
Mokhtar, A.R.M., Genovese, A., Brint, A. and Kumar, N. (2019b), “Improving reverse supply chain
performance: the role of supply chain leadership and governance mechanisms”, Journal of
Cleaner Production, Vol. 216, pp. 42-55.
Naghshineh, B. and Lotfi, M. (2019), “Enhancing supply chain resilience: an empirical investigation”,
Continuity and Resilience Review, Vol. 1, pp. 47-62.
OECD (2020), “Organization for economic Cooperation and development - ‘Cities policy responses’”,
OECD Policy Responses to Coronavirus, Vol. 23 July, available at: http://www.oecd.org/
coronavirus/policy-responses/cities-policy-responses-fd1053ff/.
Patrucco, A.S., Moretto, A., Luzzini, D. and Glas, A.H. (2020), “Obtaining supplier commitment:
antecedents and performance outcomes”, International Journal of Production Economics,
Vol. 220, 107449.
Paulraj, A. and Chen, I.J. (2007), “Environmental uncertainty and strategic supply management:A
resource dependence perspective and performance implications”, Journal of Supply Chain
Management, Vol. 43 No. 3, pp. 29-42.
Porter, M.E. (1980), Competitive Strategy: Techniques for Analyzing Industries and Competitors, Free
Press, New York, NY.
PwC (2020), “PricewaterhouseCoopers “Impact of COVID-19 on the supply chain industry””,
PricewaterhouseCoopers, available at: https://www.pwc.com/ng/en/assets/pdf/impact-of-
covid19-the-supply-chain-industry.pdf.
Reinmoeller, P. and Van Baardwijk, N. (2005), “The link between diversity and resilience”, MIT Sloan Artificial
Management Review, Vol. 46 No. 4, p. 61.
supply chain
Reuters (2021), “UK retail must stay open when third lockdown ends – Ocado chairman”, Reuters
Staff, Vol. 23 February, available at: https://www.reuters.com/article/uk-health-coronavirus-
resilience
britain-retail-idUSKBN2AG0OQ.
Song, H., Yu, K. and Lu, Q. (2018), “Financial service providers and banks’ role in helping SMEs to
access finance”, International Journal of Physical Distribution and Logistics Management, Vol. 48
No. 1, pp. 69-92. 299
Starr, R., Newfrock, J. and Delurey, M. (2003), “Enterprise resilience: managing risk in the networked
economy”, Strategy þ Business, Vol. 30, pp. 1-10.
Tong, X., Chen, J., Zhu, Q. and Cheng, T.C.E. (2018), “Technical assistance, inspection regime, and
corporate social responsibility performance: a behavioural perspective”, International Journal of
Production Economics, Vol. 206, pp. 59-69.
UNCTAD (2020), “United Nations Conference on Trade and Development - COVID-19’s economic
fallout will long outlive the health crisis, report warns”, available at: https://unctad.org/news/
covid-19s-economic-fallout-will-long-outlive-health-crisis-report-warns.
WHO (2020), “WHO releases guidelines to help countries maintain essential health services during the
COVID-19 pandemic”, World Health Organization, Vol. 30 March, available at: https://www.
who.int/news-room/detail/30-03-2020-who-releases-guidelines-to-help-countries-maintain-
essential-health-services-during-the-covid-19-pandemic.
Wiengarten, F., Li, H., Singh, P.J. and Fynes, B. (2019), “Re-evaluating supply chain integration and
firm performance: linking operations strategy to supply chain strategy”, Supply Chain
Management: An International Journal, Vol. 24 No. 4, pp. 540-559.
WTO (2020), “Trade set to plunge as COVID-19 pandemic upends global economy”, World Trade
Organization, Vol. 8 April, available at: https://www.wto.org/english/news_e/pres20_e/pr855_
e.htm.
Zhao, K., Zuo, Z. and Blackhurst, J.V. (2019), “Modelling supply chain adaptation for disruptions: an
empirically grounded complex adaptive systems approach”, Journal of Operations
Management, Vol. 65 No. 2, pp. 190-212.
Corresponding author
Mauro Fracarolli Nunes can be contacted at: [email protected]
For instructions on how to order reprints of this article, please visit our website:
www.emeraldgrouppublishing.com/licensing/reprints.htm
Or contact us for further details: [email protected]