Agility, digitalization, and localization: a framework for supply chain resilience

Abstract

AbstractThe epidemic of COVID-19 exposed companies to the failure of typical manufacturing and consumption patterns and their long-term effects on supply chains. This conceptual paper discusses localization, agility, and digitalization factors that make the supply chain more resilient. From a theoretical perspective, this research intends to investigate how these characteristics interact to assist the supply chain in becoming resilient by using digitalization, localization, and agility as enablers through conceptual models.The methodology used in this study is an exploratory conceptual investigation to cover the theoretical gaps. A critical evaluation of the literature was conducted to develop a conceptual model to ascertain the current state of knowledge regarding the relationship between supply chain resilience, localization, agility, and digitization in management practice. The study's primary data are the responses to questionnaires issued to respondents, analyzed, and hypotheses were formed and tested using the structural equation modeling technique. The result indicates that agility, localization, and digitalization positively impact supply chain resilience. Additionally, the industry's size and type positively impact the supply chain resilience as a control variable.As a result of the research, a new understanding of supply chain resilience emerges that can assist firms to gain new possibilities to develop new ways to do business under stress.