On supplier resilience: How supplier performance, disruption frequency, and disruption duration are interrelated

Burkhart, Davide ; Bode, Christoph

DOI: https://doi.org/10.1016/j.pursup.2024.100921
URL: https://www.sciencedirect.com/science/article/pii/...
Document Type: Article
Year of publication Online: 2024
Date: 3 April 2024
The title of a journal, publication series: Journal of Purchasing and Supply Management
Volume: tba
Issue number: Article 100921
Page range: 1-46
Place of publication: Amsterdam
Publishing house: Elsevier Science
ISSN: 1478-4092
Publication language: English
Institution: Business School > Stiftungslehrstuhl für Procurement (Bode 2014-)
Subject: 650 Management
Keywords (English): supplier resilience , supply chain resilience , supply chain disruption , risk management , supplier management , supplier quality
Abstract: Supply chain disruptions have a well-documented detrimental impact on firm performance, and recent crises have reaffirmed this effect. While the relationship between a supplier's overall performance and the frequency and duration of supply chain disruptions is often suggested, it lacks substantial empirical evidence. We conducted three comprehensive empirical analyses using panel data involving 352 suppliers to investigate the relationship between supplier performance and supply chain disruptions. Our findings indicate a negative correlation between supplier performance and the frequency and duration of disruptions, that is, poorly performing suppliers are associated with more frequent and longer disruptions. Furthermore, disruption intensity (disruption frequency × disruption duration) exacerbates the negative impact on performance. We find that disruptions have a milder negative performance effect when they emanate from suppliers that have a history as “good performers” compared to “poor performers.” A supplementary analysis shows that disruptions notably affect supplier quality. This study bears significance for practitioners and contributes to the literature on supplier resilience. Our analyses highlight that supplier performance is not only an important predictor for the occurrence of supply chain disruptions but also mitigates (i.e., moderates) the negative effects in case they occur.

Economic Sustainability

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