Title: Matching risk vulnerabilities with capacities for building supply chain resilience – a theoretical framework for low-probability, high-impact risks

Authors: Ming Zhou; Shu Zhou; Tianqin Shi; Taeho Park

Addresses: School of Global Innovation and Leadership, Lucas Graduate and College of Business, San Jose State University, San Jose, CA, USA ' School of Global Innovation and Leadership, Lucas Graduate and College of Business, San Jose State University, San Jose, CA, USA ' School of Global Innovation and Leadership, Lucas Graduate and College of Business, San Jose State University, San Jose, CA, USA ' School of Global Innovation and Leadership, Lucas Graduate and College of Business, San Jose State University, San Jose, CA, USA

Abstract: COVID-19 best reminds us of how every pain that is felt by supply chains goes to impact production. An aggregated framework of supply chain risk analysis is needed. This research endeavoured to theoretically structure the inter-relationships among supply chain vulnerabilities as well as corresponding capacity factors to mitigate supply chain risks and sustain supply chain resilience. An inter-relationship structure among risk vulnerabilities was mapped. Capacity factors were matched with each vulnerability category using anecdotal evidence found from various news and literature databases relevant to supply chain resilience concepts. The derived capacity-vulnerability typology revealed links between vulnerability and capacity factors and a structural model for risk prioritisation in managing low-probability, high-impact risks (LPHIRs). Production businesses and professionals shall find our findings a focused guideline for efficiently and effectively building risk resilient capacities. An extensive empirical study of our model with more comprehensive databases will better validate our theoretical results.

Keywords: supply chain resilience; risk management; low-probability and high-impact risks; vulnerability; adaptability; resilient strategic thinking; theory building and case studies.

DOI: 10.1504/IJSCOR.2022.123902

International Journal of Supply Chain and Operations Resilience, 2022 Vol.5 No.2, pp.185 - 216

Received: 03 Aug 2021
Accepted: 05 Jan 2022
Published online: 04 Jul 2022 *