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Understanding systemic disruption from the Covid-19-induced semiconductor shortage for the auto industry

Ramani, V., Ghosh, D. & Sodhi, M. ORCID: 0000-0002-2031-4387 (2022). Understanding systemic disruption from the Covid-19-induced semiconductor shortage for the auto industry. Omega, 113, 102720. doi: 10.1016/j.omega.2022.102720

Abstract

Covid-19 has allowed us to study systemic disruptions that impact entire industries. This paper explores how disruptions start, propagate, and continue over time by examining the semiconductor chip shortage faced by the auto industry during the years following Covid-19 in 2020. First, we carried out a thematic analysis of 209 pertinent newspaper articles. The analysis resulted in a thematic model of such disruptions with the interplay of various factors leading to the prolonged disruption to the auto sector. Second, we present the results from a stylized supply chain planning model run at different times to show how disruptions propagate to the auto and other sectors, causing systemic shortages. Overall, we contribute to the supply chain risk literature by focusing on system disruptions impacting entire industries versus normal disruptions affecting a particular company’s supply chain.

Publication Type: Article
Additional Information: © 2022. This manuscript version is made available under the CC-BY-NC-ND 4.0 license https://creativecommons.org/licenses/by-nc-nd/4.0/
Publisher Keywords: Systemic disruption, Covid-19, Automotive, Chips shortage, Electronic industry
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Departments: Bayes Business School > Management
[img] Text - Accepted Version
This document is not freely accessible until 3 January 2024 due to copyright restrictions.
Available under License Creative Commons Attribution Non-commercial No Derivatives.

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