COVID-19 Pandemic Impact on the Supply Chains of UK-Based Multinational Manufacturing Companies

Abstract

The main objective of this paper is to evaluate the main impacts of the COVID-19 pandemic on the supply chain structures and arrangements of UK-based multinational manufacturing companies. The main objectives of this research are (1) to establish the main risks posed by COVID-19 to the existing supply chains established by multinational manufacturers in the UK, and (2) to evaluate whether multinational manufacturing businesses in the UK can learn from challenges faced during the COVID-19 pandemic by referring to the concept of supply chain resilience and (3) to provide practical recommendations to multinational manufacturers in the UK on how the key impacts of COVID-19 could be overcome and leveraged as a source of new knowledge in the area of supply chain management. The posed objectives were realized via the mixed methods research strategy involving a quantitative survey and its triangulation with the results of qualitative interviews conducted with managers of such organizations. We used two different data collection channels (1) LinkedIn and (2) Reddit. Our data set was constructed with 12 questionnaires and three interviewers. Using these data sets, our findings strongly suggest that the seven identified risk dimensions influenced the supply chain integrity of these companies both before and after the global COVID-19 pandemic. It could be attributed to the insular state of the UK and other macro-environmental factors limiting the procurement capabilities of local firms. However, most of these dimensions were severely affected by the pandemic, demonstrated by both the performed Friedman tests and the statements voiced by the interviewees. While some mitigation strategies were cited as relatively effective for addressing the emerging risks, most of the respondents noted that the systemic nature of encountered problems and their magnitude made it difficult for individual companies to avoid, mitigate, or transfer these risks.