Risk management, robustness and resilience: mechanisms for stabilizing and improving agility performance

Abstract

Paper aims: This study aims to empirically explore the mechanisms by which supply chain capabilities dedicated to risk management, robustness, and resilience contribute to improved agility performance in times of disruptions from unavoidable risks. Originality: This is the first empirical research examining the direct and indirect effects of supply chain capabilities related to risk management, robustness, and resilience on improving agility performance in times of disruptions. Research method: The study considers supply chain risk management as a dynamic capability and supply chain robustness and resilience as operational capabilities that have a mediating role in improving the agility performance of partner firms. Data collected through a survey was used for structural equation modeling and other tests to explore the respective effects of these supply chain capabilities in an environment marked by unavoidable risks, vulnerabilities, and disruptions. Main findings: The development of a supply chain risk management capability supported by the generation and/or reconfiguration of the operational capabilities inherent in supply chain robustness and supply chain resilience results in improved agility performance for global supply chain partner firms in times of disruptions. Implications for theory and practice: The results contribute to the theoretical development of issues related to the mechanisms by which supply chain capabilities, particularly risk management, robustness, and resilience work together to improve agility performance and achieve competitive advantage in times of disruptions.