Only as strong as its weakest link: the role of industry type in the relationship between supply chain diversification and post-crisis organisational recovery
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2025-06-30
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en
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Handling large crises and finding appropriate risk-mitigation strategies for large disruptions remains a challenge for organisations. One way for firms to build resilience to handle and recover from crises is by diversifying supply chains. However, little research has yet examined different effects for industry type of supply chain diversification (SCD) on post-crisis resilience in the post-pandemic era. In the context of the COVID-19 crisis, this research takes a dynamic capabilities approach to examine whether SCD strategies can help firms to be more independent and agile to decrease time-to-recovery (TTR) and whether industry type moderates this relationship. A distinction is made between manufacturing and service industries, and SCD is measured through geographical diversification (GD) and product line diversification (PLD). Multiple linear regression with interaction effects is used to examine possible relationships. Contrary to the hypotheses, the results showed that more geographical diversification led to longer recovery times specifically for manufacturing firms, while PLD had no effect for either industry. The results suggest that in times of crisis, manufacturing firms may experience issues rather than benefits from geographical diversification, as their recovery time is longer when they are more geographically diversified. For service firms, no significant effects were found.
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Faculteit der Managementwetenschappen