From Crisis to Continuity: Investigating Shock Absorption, Recovery and Collaboration in Manufacturing Supply Chains

Abstract

With increasing globalisation and complexity in supply chains, the potential for unexpected
disruptions has gained significant attention from both business practitioners and academic
researchers. This thesis consists of three interconnected studies that collectively aim to
expand our understanding of supply chain disruption dynamics, the resilience of various
supply chain echelons, and the important role of external stakeholders in enhancing supply
chain resilience, particularly within the context of small and medium-sized enterprises
(SMEs).
The first study uses network theory to examine interactions and coping strategies during
disruptions as it investigates the dynamics of shock distribution throughout supply chain
echelons. This study highlights manufacturers' crucial role in reducing the bullwhip effect
and boosting supply chain resilience by identifying them as the main absorbers of supply
chain shocks who fail to recover from disruptions. The study uses a modified version of the
beer-game simulation. This result emphasises how crucial inter-echelon coordination and
strategic planning are to enhancing manufacturers' resilience.
Expanding upon the fundamental findings of the first study, the second study explores the
adaptability of SMEs in India's clothing and apparel industry to unexpected disruptions.
Using a phenomenon-based theorising approach, this study allows resilience strategies to
emerge naturally from observed behaviours, highlighting the importance of risk appetite,
strategic implementation of backup plans, and collaboration with supply chain partners as
factors that affect recovery abilities. The study offers practical recommendations for SMEs to
improve their resilience and competitive position in the face of disruptions.
The final study examines the critical role of external stakeholders in strengthening resilience
among SMEs, drawing on both stakeholder theory and dynamic capabilities. Through
qualitative interviews, this study explores how government support, financial aid, regulatory
assistance, and active engagement from stakeholders contribute to manufacturers' recovery
processes. By focusing on context-specific strategies that emerge in response to disruptions,
the study illustrates how these initial responses can gradually evolve into structured resilience
capabilities through sustained collaboration with stakeholders.
Collectively, these studies thoroughly analyse resilience, supply chain disruptions, and the
connection between internal resources and external support systems. A comprehensive
strategy is crucial for managing disruptions and building resilience. The knowledge obtained
adds to the theoretical contributions of supply chain management. It provides practitioners
with useful recommendations, especially about strengthening the manufacturing sector's and
SMEs' resilience in the global supply chain landscape context.