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Catastrophic supply chain disruptions and supply network changes: A study of the 2011 Japanese earthquake

Son, B.G. ORCID: 0000-0002-7395-0598, Chae, S. and Kocabasoglu Hillmer, S. (2021). Catastrophic supply chain disruptions and supply network changes: A study of the 2011 Japanese earthquake. International Journal of Operations and Production Management,

Abstract

Purpose – Catastrophic supply chain disruptions can significantly damage the operational and financial performance of firms. While a growing body of literature on supply network structures has studied what influences supply networks’ vulnerability to supply chain disruptions and capability to recover from them, it remains unclear how supply network structures change after major supply chain disruptions. We aim to provide an understanding of how these changes occur.

Design/methodology/approach – Using a natural experiment approach and supply network data from FactSet, this study investigates how firms’ supply network structures change after experiencing the catastrophic supply chain disruptions caused by the 2011 Tōhoku earthquake and tsunami in Japan. We capture post-earthquake supply network changes using the measures of degree centrality and ego network density.

Findings – The results of the analysis suggest that compared to unaffected firms, the affected firms experience changes in their supply network structures tending toward lower complexity measured by in-degree centrality, out-degree centrality, and ego network density.

Originality/value – This study contributes to social network theory and the complex adaptive supply network literature by providing empirical evidence of structural changes in supply networks after catastrophic supply chain disruptions. A managerial contribution is made by providing a reflection on why these changes might be occurring and alerts firms to the challenges of managing complexity in their supply networks.

Publication Type: Article
Additional Information: This author accepted manuscript is deposited under a Creative Commons Attribution Non-commercial 4.0 International (CC BY-NC) licence. This means that anyone may distribute, adapt, and build upon the work for non-commercial purposes, subject to full attribution. If you wish to use this manuscript for commercial purposes, please contact permissions@emerald.com.
Publisher Keywords: Supply networks, Network change, Supply chain disruption, Catastrophic disaster, Complexity
Subjects: G Geography. Anthropology. Recreation > GE Environmental Sciences
H Social Sciences > HD Industries. Land use. Labor
Departments: Business School > Management
Date Deposited: 14 Apr 2021 10:02
URI: https://openaccess.city.ac.uk/id/eprint/25900
[img] Text - Accepted Version
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