Management Practice Insights
DOI: 10.59571/mpi.v2i2.3
Year: 2024, Volume: 2, Issue: 2, Pages: 48-52
Original Article
Anirudh Shingal 1
1 Professor in SPJIMR's Finance & Economics department.
Correspondance
[email protected]
Received Date:29 November 2023, Accepted Date:30 August 2024, Published Date:15 October 2024
Why are some supply-chain links disrupted by external shocks while others are maintained? How do firms recover quickly from supply-chain shocks in times of crises? Recent research by teams led by Guedhami and Todo provides some answers by examining how firms responded to the Covid-19 crisis.1,2 Flexibility in strategy and the ability to optimize corporate policies to capitalize on the staggered impact of the pandemic in different countries across the world have proven to have helped. Moreover, links with a supplier or customer in the home country of a foreign-owned firm ensured that firms were less adversely affected while having access to suppliers and customers across different countries enabled the firms to recover quickly. Additionally, government support can also mitigate supply chain risks and even transform challenges into opportunities
1 Omrane Guedhami et al., “Economic Impact of COVID-19 across National Boundaries: The Role of Government Responses,” Journal of International Business Studies 54, no. 7 (September 1, 2023): 127897, https://doi.org/10.1057/s41267-023-00612-3
2 Yasuyuki Todo, Keita Oikawa, Masahito Ambashi, Fukunari Kimura, Shujiro Urata, “Robustness and Resilience of Supply Chains during the COVID‐ 19 Pandemic - Todo - 2023 - The World Economy - Wiley Online Library,” November 29, 2022, https://doi.org/10.1111/twec.13372
3 Sean Harapko, “How COVID-19 Impacted Supply Chains and What Comes Next,” January 6, 2023, https://www.ey.com/en_gl/insights/supply-chain/howcovid-19-impacted-supply-chains-and-what-comes-next
4 Richard E. Baldwin and Eiichi Tomiura, eds., Thinking Ahead about the Trade Impact of COVID-19, 2020.
5 Maryla Maliszewska et al., The Potential Impact of COVID-19 on GDP and Trade: A Preliminary Assessment (World Bank, Washington, DC, 2020), https://doi.org/10.1596/1813-9450-9211
6 Emma Brandon-Jones, Brian Squire, Chad W. Autry, Kenneth J. Petersen, “A Contingent Resource‐ Based Perspective of Supply Chain Resilience and Robustness - Brandon‐ Jones - 2014 - Journal of Supply Chain Management - Wiley Online Library,” accessed May 15, 2024, https://doi.org/10.1111/jscm.12050
7 Sébastien Miroudot, “Resilience versus Robustness in Global Value Chains: Some Policy Implications,” CEPR, June 18, 2020, https://cepr.org/voxeu/columns/resilience-versus-robustness-global-valuechains-some-policy-implications
8 Fanny Henriet, Stéphane Hallegatte, and Lionel Tabourier, “Firm-Network Characteristics and Economic Robustness toNatural Disasters,” Journal of Economic Dynamics and Control 36, no. 1 (January 1, 2012): 15067, https://doi.org/10.1016/j.jedc.2011.10.001
9 Lisa Brian, “IKEA Works Hard to Mitigate the Global Supply Chain Disruption,” October 18, 2023, https://www.goodfirms.co/inventorymanagement-software/blog/ikea-works-hard-to-mitigate-global-supplychain-disruption
10 “Japans 2011 Earthquake and Tsunami: Economic Effects and Implications for the United States,” CRS Report, June 8, 2011, https://www.everycrsreport.com/reports/R41702.html#_Toc296616780
11 Amritha Pillay, “RIL Says Core Business Has Got demand-Side Shock Due to Coronavirus,” Business Standard, May 18, 2020, https://www.businessstandard.com/article/companies/core-business-has-received-a-demand-sideshock-reliance-industries-120051801125_1.html
12 Debby Wu, “Coronavirus Is Expediting iPhone Makers Plans to Move Beyond China,” Bloomberg.Com, March 27, 2020, https://www.bloomberg.com/news/articles/2020-03-27/iphone-makers-lookbeyond-china-in-supply-chain-rethink
13 CHENG TING-FANG and LAULY LI, “Google to Shift Pixel Smartphone Production from China to Vietnam,” August 28, 2019, https://buyap.piano.io/checkout/template/cacheableShow?aid=3keAb0xYpj&templateId=OT2BQCMAJRXC&templateVariantId=OTVWEC1IMDXX2&offerId=fakeOfferId&experienceId=EXANCNJSVG2E&iframeId=offer_8db338c72a3a1fa15232-0&displayMode=inline&pianoIdUrl=https%3A%2F%2Fauth.asia.nikkei.com%2Fid%2F&widget=template&url=https%3A%2F%2Fasia.nikkei.com
14 Fibre2Fashion, “Indonesian Textiles Industry Likely to Pull through Global Pandemic,” Fibre2Fashion, May 2020, http://www.fibre2fashion.com/industryarticle/8679/indonesian-textiles-industry-likely-to-pull-through-globalpandemic
15 Kenneth Rapoza, “China-Led Globalization Is Coming To An End,” Forbes, May 21, 2020, https://www.forbes.com/sites/kenrapoza/2020/05/21/face-itchina-led-globalization-is-over/ .
16 Anna-Katrina Shedletsky, “Coronavirus Hits Electronics Manufacturing Hard, Companies Are Scrambling,” Forbes, February 7, 2020. https://www.forbes.com/sites/annashedletsky/2020/02/07/coronavirus-hitselectronics-manufacturing-hard-companies-are-scrambling/
17 Jennifer Maloney, “How a Beer Giant Manages Through Waves of Covid-19 Around the World,” Wall Street Journal, June 27, 2021, https://www.wsj.com/articles/how-a-beer-giant-manages-through-waves-ofcovid-around-the-world-11624830297
18 Anna Fifield, “Chinas next Challenge: Coronavirus Breaks the Links in the Worlds Supply Chain,” Washington Post, March 11, 2020, https://www.washingtonpost.com/world/asia_pacific/chinas-next-challengecoronavirus-breaks-the-links-in-the-worlds-supplychain/2020/03/11/175f391e-6270-11ea-8a8e-5c5336b32760_story.html
19 Reuters, “Now Made in Mexico: Japan Auto Suppliers Shift China Production after Virus Shock,” The Japan Times, March 17, 2020, sec. BUSINESS, https://www.japantimes.co.jp/news/2020/03/17/business/japanauto-suppliers-shift-china-mexico/
20 Brad Randall, “How to Maximize Internet Reliability with Strategies for Business Continuity,” Broadband Communities, January 16, 2024, https://bbcmag.com/how-to-maximize-internet-reliability-with-strategies-forbusiness-continuity/
© 2024 Published by SPJIMR. This is an open-access article under the CC BY license (https://creativecommons.org/licenses/by/4.0/)
Subscribe now for latest articles and news.
