Abstract
1- Introduction
2- Risk management theoretical lenses – a review
3- Theory
4- Hypotheses
5- Research methodology
6- Analysis and results
7- Discussion
8- Conclusion & contribution
9- Limitations & future research
References
Abstract
Studying near-miss events – occasions when a company comes close to being negatively impacted – can help identify systemic issues and thereby enhance organizational resilience. However, what is not known is how firms learn from near-miss events, and how their learning is translated into response strategies in the face of supply chain disruptions. In this study, we address the following research questions - How does exposure to near-misses reflect in organizational response strategies to supply chain disruptions? Using single and double-loop learning from organizational learning theory, we examine how firms implement response strategies based on near-miss events. In addition, we examine the moderating effects of institutional pressures (from regulatory bodies and industry associations) into the model. We test the hypotheses using responses from 448 organizations in Germany, Switzerland and Sweden. Our results indicate that exposure to near-miss events leads firms to strengthen their focus on procedural response strategies and to lower their focus on flexible response strategies. Industry pressure furthers the effects of near-miss exposure in applying procedural strategies and limiting the application of flexible strategies. Regulatory pressure furthers the effects of near-miss exposure in limiting the application of flexible strategies. This study extends the body of supply chain disruption management to the concept of near-misses and explains how institutional context play a major role in learning of supply chain disruption responses.
Introduction
Today's ever more complicated and global business environment has led many companies to become concerned about risks and disruptions in their supply chains (Azadegan and Jayaram, 2018; Shaheen et al., 2017). As supply chain disruptions become seemingly more damaging and prevalent, company preparedness and response have also raised in importance (Culp, 2013; Scott, 2016). Management scholars postulated different theoretical lenses to examine risk in organizations and ways to mitigate them. For instance, normal accident theory (NAT) suggests that accidents are inevitable and occur due to tight coupling between components and also due to the complexity of systems (Perrow, 1994). The Swiss cheese model suggests that firms can minimize risks by incorporating both hard (systems based) and soft (people based) countermeasures (Reason, 1990). Yet, there will be instances where the countermeasures may fail due to the perfect alignment of events and conditions. High-reliability organization (HRO) researchers posit that we can learn a lot from organizations that are prone to catastrophic failures but do not manifest as frequently, such as aircraft carriers, air traffic control or nuclear power plants (Roberts, 1990; Speier et al., 2011). These theories were postulated to help manage major failures. Yet, major failures do not occur frequently enough to gain substantial understanding from them. Further, while these theories are effective in analyzing the reasons behind failures, they may not be able to provide insights on how to prevent these failures (Reason, 1990).