Formation of Resilience to Mitigate Risk and Moderating Effect of Supply Chain and Supply Base Complexity

Abstract

Introduction: In the past few decades supply chains have become vulnerable to risks which are causing numerous losses both physical and financial to organizations. Resilience is considered as a strategy to deal with risks. It is the ability of an organization to mitigate risks and in case of exposure return to original performance in shortest span of time. Resilience building is dependent on development of capabilities which are termed as Resilience Enablers and Integration in this study. Resilience Enablers and Integration form Resilience which in turn helps in mitigation of risk. This process might get affected by the complexity of supply chains which is increasing day by day. Complexity can affect the performance of resilience as more complex supply chains are difficult to handle and may bring more risks.This study takes Supply Chain Complexity and Supply Base Complexity as moderators to analyze their effect on the performance of Resilience Enablers in building Resilience and that of Resilience in mitigating Risks. Method: This study is quantitative in nature and data was collected using questionnaire for testing hypotheses. Data was collected from supply chain/logistics/procurement managers and assistant managers of FMCG firms. Five hypotheses were tested based on the conceptual model. For testing and analyzing hypothesis various statistical tests were performed like descriptive, correlation, Confirmatory Factor analysis, and were conducted in SPSS and Warp PLS software’s. Conclusion: The results of the analysis showed that specified set of Enablers do not play role in formation of Resilience but Integration plays a positive role in formation of Resilience. Resilience role in mitigation of risk is also supported by results. Moreover SBC negatively moderates the relation between Enablers and Resilience but SCC does not moderate the relation between Resilience and Risk. Key words: Resilience Enablers, Supply Chain Resilience, Supply Chain Risks, Integration, Supply Base Complexity (SBC), Supply Chain Complexity (SCC