Does Vulnerability or Resilience Matter in Managing International Supply Chains?
Institute of Business Studies, Kohat University of Science and Technology
In the context of growing need for offshoring, the managers are always confronted with the dilemma to decide between the competitive advantage and uncertainties. The unique conditions of a country help provide a perception of vulnerability profile that result in placing the countries in least preferred category despite their being abundant in natural resources, human resources, and lower production cost. This article attempts to find the relationship of country vulnerability profile and resilience of supply chain stage carried out in unique conditions of the location. For this purpose, a conceptual framework has been proposed and instrument has been used to measure the model for empirical testing. Data has been collected from international garments supply firms in two countries with unique conditions. Descriptive statistics and regression are used to test the assumption. The findings suggest that only the volatile conditions do not determine the resilience of a supply chain stage but the adaptability of a firm also affects the resilience of a stage, no matter how volatile are the conditions. This is a novel study that significantly contributes to the existing literature besides offering insight to supply chain managers in managing international supply chains.
Keywords: Adaptability, Vulnerability, Resilience, Supply chain, Offshoring decision