Does firm innovativeness enable effective responses to supply chain disruptions? An empirical study

Purpose – The purpose of this paper is to investigate the nexus of relationships linking firm innovativeness, innovation magnitude, disruption severity, and supply chain resilience. These relationships are examined within a supply chain disruptions context. Design/methodology/approach – This study employed between subjects scenario-based experimental methodology combined with a survey method. Participants in the study were senior level logistics/supply chain and operations managers in US and European manufacturing companies. The hypotheses were tested via linear regression models. Findings – Findings suggest that both firm innovativeness and innovation magnitude are positively associated with supply chain resilience. In addition, it was found that disruption severity is positively associated with innovation magnitude. Research limitations/implications – Based on the findings, the authors expect that firm innovativeness as a dynamic capability should have a positive impact on achieving supply chain resilience. The more severe the disruption faced, the higher the magnitude of innovation adopted by firms. Therefore, firm innovativeness and innovation magnitude work in tandem to positively influence supply chain resilience. Originality/value – This paper contributes to the supply chain risk management literature by enhancing the understanding of both positive outcomes of firm innovativeness and drivers of supply chain resilience. It responds to the question, “What enables firms to respond effectively to supply chain disruptions?” from an innovation perspective that has been ignored in the previous literature.