Role of information processing and digital supply chain in supply chain resilience through supply chain risk management

Abstract

Purpose

Supply chain (SC) management is more challenging than ever. Significantly, the pandemic has provoked global and economic destruction that appeared in the manufacturing industry as a “black swan.” Therefore, the purpose of this study was to examine the role of information processing and digital supply chain in supply chain resilience through supply chain risk management.

Design/methodology/approach

This study examines SC risk management and resilience from an information processing theory perspective. The authors used data collected from 251 SC professionals in the manufacturing industry, and the authors used a quantitative method to analyze the data. The data was analyzed using partial least squares-structural equation modeling. To confirm the higher-order measurement model, the authors used SmartPLS version 4 software.

Findings

This study found that information processing capability (disruptive orientation and visibility in high-order) and digital SC significantly and positively affect SC risk management and resilience. Similarly, SC risk management positively mediates the relationship between information processing capability and digital SC. However, information processing capability was found to have a more substantial effect on SC risk management than the digital SC.

Research limitations/implications

This study has both academic and practical contributions. It contributed to existing information processing theory, and manufacturing firms can improve their performance by proactively responding to SC disruptions by recognizing the pivotal role of study variables in risk management for a resilient SC.

Originality/value

The conceptual model of this study is based on information processing theory, which asserts that synchronizing information processing capabilities and digital SCs allows a firm to deal with unplanned events. SC disruption orientation and visibility are considered risk controllers as they allow the firms to be more proactive. An integrated model of conceptualizing the disruption orientation, visibility (higher-order) and digital SC with information processing theory makes this research novel.

Citation

Rashid, A., Rasheed, R., Ngah, A.H., Pradeepa Jayaratne, M.D.R., Rahi, S. and Tunio, M.N. (2024), "Role of information processing and digital supply chain in supply chain resilience through supply chain risk management", Journal of Global Operations and Strategic Sourcing, Vol. 17 No. 2, pp. 429-447. https://doi.org/10.1108/JGOSS-12-2023-0106