J. Kiarash Sadeghi, Elisabeth Struckell, Divesh Ojha and David Nowicki
Service organization supply chains provide a context that amplifies the complexity of interorganizational interdependencies and the need to build unique capabilities and…
Abstract
Purpose
Service organization supply chains provide a context that amplifies the complexity of interorganizational interdependencies and the need to build unique capabilities and innovative solutions, especially when confronted with man-made or natural disasters. Using the lens of complex adaptive systems (CAS), this study aims to investigate the role of absorptive capacity (AC), change management capability and information quality in improving a firm’s ability to cope with disasters – disaster immunity (DI). The study uniquely parses absorptive capacity into a three-variable, second-order construct (absorptive human resource management, absorptive complementary knowledge and absorptive infrastructure).
Design/methodology/approach
Using data collected from 264 US service firms in a supply chain context, this paper evaluates the research model using the structural equation modeling approach.
Findings
The second-order, three-dimensional framework for AC has far superior psychometric properties as compared to the previous unidimensional conceptualizations. Results show that AC influences a firm’s DI through change management capability and information quality – two DI enhancing resources.
Originality/value
The paper builds on previous conceptual discussions of absorptive capacity as a multidimensional construct by operationalizing AC as a latent variable with three dimensions (above). Moreover, this paper shows that AC, change management capability, information quality and DI are interrelated parts of a CAS.
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Kiarash Sadeghi R, Divesh Ojha and Arash Azadegan
Outsourcing and offshoring practices have introduced a high level of complexity into operations and supply chains, involving suppliers and manufacturers from various locations to…
Abstract
Purpose
Outsourcing and offshoring practices have introduced a high level of complexity into operations and supply chains, involving suppliers and manufacturers from various locations to deliver value to final customers within an integrated information-sharing system such as enterprise resource planning (ERP). Such supply chains have been facing more cyberattacks, a ubiquitous problem and danger to businesses worldwide. Therefore, the research objective addresses these research questions: “What is the role of complexity in building cyber-resilience in supply chains? What is the role of ERP in complex supply chains?”
Design/methodology/approach
This paper proposes a research model that is empirically tested along with robustness tests such as endogeneity. To provide empirical data, this paper focused on supply chain relationships as the unit of analysis. The sample is selected from the USA employee population with experience in operations management and information technologies.
Findings
The findings indicate that ERP systems assist supply chains in reducing the adverse effects of downstream complexity on the efficacy of information sharing within secure systems for creating cyber resilience. Moreover, theoretical development showed that the more complex the supply chains are, the harder it is to create rents.
Practical implications
The findings underscore the importance of implementing cybersecurity frameworks such as ISO 27001, as well as regular training to mitigate threats such as phishing and social engineering. Despite the initial costs, such investments are vital for minimizing potential losses from breaches, which are estimated to cost around $4m on average globally.
Social implications
This research reveals the social impacts of supply chain cyber resilience through ERP systems, which emphasize the protection of consumer data, job security and public confidence. Cyber resilience and ERP systems help shield against data breaches, preserving privacy, preventing job losses and maintaining trust between people and industrial sectors.
Originality/value
The contribution is to propose the moderated moderating role of ERP in cyber resilience. This paper investigates the interaction effects of ERP and downstream complexity on the relationship between information sharing and cyber resilience. Moreover, this paper develops the relational view to consider the influential impacts of complexity in creating rents.