COVID-19 and Supply Chain Disruption Management: A Behavioural Economics Perspective and Future Research Direction

Abstract

The COVID-19 pandemic has been one of the most severe disruptions to normal life, impacting how businesses operate. The academic literature in the areas of supply chain and operations management has been trying to explain how this has affected decision-making in businesses. However, the existing literature has predominantly overlooked organisational culture and behavioural economic theories. This paper contends that considering the decisions made in supply chain disruption management involve groups and the individuals within them, the relevance of behavioural economic concepts becomes paramount. As such, the objective of this paper is to conduct an integrative literature review, utilising the purposive sampling method to explore the dearth of academic work connecting behavioural economic theories and organisational culture to supply chain disruption management. Additionally, the paper aims to offer guidelines for future research in this domain. Enhancing our comprehension of these domains concerning supply chain disruption management would empower firms to better anticipate their parties’ decisions, refine their decision-making models, and cultivate stronger relationships with suppliers and customers.