Achieving Flexibility via Contingency Planning Activities in the Supply Chain

Abstract

Supply chain disruptions significantly impact businesses worldwide. Many organizations work towards improving flexibility so as to prepare for such disruptions and maintain competitive advantage. This research effort examines four activities that are associated with the contingency planning process to determine which, if any, of these processes are ultimately supportive of organizational flexibility. These activities are: information sharing, external collaboration, internal collaboration, and information technology usage. A survey method is employed to examine the perceptions of 103 contingency planners to determine which of these potential determinants are positively related to organizational flexibility. The data are analyzed using partial least square regression, and reveal that information technology use and external collaboration are significant determinants of organizational flexibility. Implications of our findings are discussed and future research to support this burgeoning area of supply chain management is proposed.