Contingency Management and Supply Chain Performance in Korea: A COVID-19 Pandemic Approach

Contingency Management and Supply Chain Performance in Korea: A COVID-19 Pandemic Approach

Yongping Zhong, Hee Cheol Moon, Segu Oh

Unexpected incidents are driving global supply chains to the brink of collapse. To effectively manage contingency events like the COVID-19 pandemic and improve operational performance, factors such as information technology (IT), relational competencies, cooperation with supply chain partners and integration of supply chain systems that contribute to cooperation are essential. This study found that IT and relational competencies positively influence the integration of supply chain systems, and relational competencies have a stronger implication on supply chain integration and collaboration. In addition, supply chain collaboration, strengthened by supply chain integration, positively affects contingency management. Finally, contingency management positively influences operational performance. In this study, we adopted partial least squares structural equation modeling (PLS-SEM) method in the analysis with 102 surveys collected from business managers. Through the evaluation of determinants of contingency management and supply chain performance, this study widens the theoretical base of supply chain management and provides managers with optimal ways to build a more resilient supply chain system to cope with unexpected incidents. Consequently, with collaboration-based contingency management, companies can solve problems properly and reduce additional loss, which will enhance operational performance and enable sustainable business success.

2020

Operational performance, IT Competency, contingency management, relational competency, SC (supply chain) integration, SC (supply chain) collaboration

10.3390/su12239823

Biotemas

Universidade Federal de Santa Catarina

Environmental effects of industries and plants, Renewable energy sources, Environmental sciences