Abstract
This study empirically examines a model that describes the relationship between supply chain resilience (SCR) and firm performance by using survey data collected from the Taiwanese liner shipping industry. In the model, the theoretical constructs of SCR consist of a risk management culture, agility, integration, and supply chain (re-)engineering. The results from testing the model show that the positive direct effects of a risk management culture on agility, integration, and supply chain (re-)engineering are significant and that risk management performance contributes to firm performance. The findings also suggest that risk management performance plays a crucial role in the positive effects of the three types of SCR (i.e., agility, integration, and supply chain (re-)engineering) on firm performance. Managers are advised to focus on the role of risk management performance to realize the performance value of SCR.
1. Introduction
Businesses compete no longer on an individual basis but as a member of a supply chain (SC) (Christopher, 2000). A wellmanaged SC is thus one of the enduring resources to enhance a firm’s competitive strength. Determining how to lower inventory levels, reduce lead times, increase SC efficiency, and enhance profit is a formidable challenge confronting many managers. Further, specialization in industry and the globalization of materials and markets encourage manufacturers to outsource their productive activities to nations with lower wages to reduce costs. On the other hand, manufacturers market their products to emerging countries with strong purchasing power such as the BRICS (Brazil, Russia, India, China, and South Africa) to increase their potential revenue. It is natural for SC members to transform themselves from local to regional or global operations. As an SC expands to include members from different cultures, locations, and time zones, SC management (SCM) becomes a complicated and challenging task.
7. Conclusion and implications
This study evaluates the relationships between risk management culture, agility, integration, SC (re-)engineering, risk management performance, and the firm performance of liner shipping firms in Taiwan and provides several contributions to the relevant literature and SCR practice. First, it examines different types of SCR and their interrelationships with firm performance. Second, it reveals the impacts of different types of SCR on firm performance from the RBV perspective. Finally, it provides several guidelines for management personnel to understand how to commit effort and resources in response to different types of SCR.
