The role of personal relationships during supply chain disruptions
DOI:
https://doi.org/10.29015/cerem.991Keywords:
personal relationships, supply chain disruptions, personal communication, proactive measures, reactive measuresAbstract
Aim: Research on supply chain disruptions is most commonly conducted on the inter-organizational level of analysis. Although personal relationships in business-to-business relationships are generally considered important, the role of personal relationships during supply chain disruptions has been neglected in extant literature. Our study aims to fill this void by focusing on the role of personal relationships from the buyer perspective.
Design / Research methods: An embedded case study was conducted at manufacturer ASML on the role of personal relationships during seven supply chain disruptions. ASML is the world’s leading supplier of machines for the semiconductor industry. The unit of analysis is a supply chain disruption due to a delay or interruption in supply caused by the supplier or a sub-supplier. A total of seven sub-cases were examined.
Conclusions / findings: We found that personal relationships facilitate communication, the building of trust, flexibility, mutual understanding and anticipating behaviors. The results indicate that personal relationships indeed can play an important role in advancing supplier performance and addressing supply chain disruptions.
Originality / value of the article: The lack of research into the role of personal relationships in handling supply chain disruptions is a notable omission and points to a gap in the current body of knowledge. This study contributes to current understandings and knowledge by being one of the first studies to specifically investigate the role of personal relationships in a context of supply chain disruptions.
Implications of the research (if applicable): The results of this study have important implications for practice. The recommendation for management is to make employees aware and train them to invest in personal relationships which lays the foundation for successful collaboration also on the inter firm level. Trust and communication can be reinforced by regular face-to-face meetings, team-building activities with counterparts and communication training for better personal skills. Regular communication and maintaining relationships in stable times can help to increase supply chain resilience.
Limitations of the research: A limitation of this research is its focus on describing the role of personal relationships during different supply chain disruptions within a single focus organization. Another limitation of our study is the focus on supply chain disruptions that were successfully resolved. Further research could address these issues.
JEL: L63, M5
References
Addo P.C., Jiaming F., Kulbo N.B., Liangqiang L. (2020), COVID-19: fear appeal favoring purchase behavior towards personal protective equipment, “The Service Industries Journal”, vol. 40 no. 7–8, pp. 471–490.
Adobor H. (2006), The role of personal relationships in inter-firm alliances: benefits, dysfunctions, and some suggestions, “Business Horizons”, vol. 49 no. 6, pp. 473–486.
Ageron B., Lavastre O., Spalanzani A. (2013), Innovative supply chain practices: the state of French companies, “Supply Chain Management”, vol. 18 no. 3, pp. 265–276.
Ambulkar S., Blackhurst J., Grawe S. (2014), Firm’s resilience to supply chain disruptions: scale development and empirical examination, “Journal of Operations Management”, vol. 33–34 no. 1, pp. 111–122.
Asamoah D., Nuertey D., Agyei-Owusu B., Acquah I.N. (2021), Antecedents and outcomes of supply chain security practices: the role of organizational security culture and supply chain disruption occurrence, “International Journal of Quality & Reliability Management”, vol. 39 no. 4, pp. 1059–1082.
Autry C.W., Golicic S.L. (2009), Evaluating buyer-supplier relationship-performance spirals: a longitudinal study, “Journal of Operations Management”, vol. 28 no. 2, pp. 87–100.
Bitsch L., Hanf J.H. (2022), The perfect match: interpersonal relationships and their impact on chain management, “International Food and Agribusiness Management Review”, vol. 25 no. 3, pp. 489–508.
Bode C., Wagner S.M. (2015), Structural drivers of upstream supply chain complexity and the frequency of supply chain disruptions, “Journal of Operations Management”, vol. 36 no. 1, pp. 215–228.
Bode C., Macdonald J.R. (2017), Stages of supply chain disruption response: direct, constraining, and mediating factors for impact mitigation, “Decision Sciences”, vol. 48 no. 5, pp. 836–874.
Bode C., Wagner S.M., Petersen K.J., Ellram L.M. (2011), Understanding responses to supply chain disruptions: insights from information processing and resource dependence perspectives, “Academy of Management Journal”, vol. 54 no. 4, pp. 833–856.
Brandon-Jones E., Squire B., Autry C.W., Petersen K.J. (2014), A contingent resource-based perspective of supply chain resilience and robustness, “Journal of Supply Chain Management”, vol. 50 no. 3, pp. 55–73.
Butt A.S. (2019), Absence of personal relationship in a buyer-supplier relationship: case of buyers and suppliers of logistics services provider in Australia, “Heliyon”, vol. 5 no. 6, e01799.
Butt A.S., Sohal A., Prajogo D. (2019), Personal relationships and loyalty in supply chain, “The Journal of Developing Areas”, vol. 53 no. 3, pp. 241–248.
Celuch K.G., Bantham J.H., Kasouf C.J. (2006), An extension of the marriage metaphor in buyer–seller relationships: an exploration of individual level process dynamics, “Journal of Business Research”, vol. 59 no. 5, pp. 573–581.
Chang W., Ellinger A.E., Blackhurst J. (2015), A contextual approach to supply chain risk mitigation, “The International Journal of Logistics Management”, vol. 26 no. 3, pp. 642–656.
Chopra S., Sodhi M. (2004), Managing risk to avoid supply-chain breakdown, “MIT Sloan Management Review”, vol. 46 no. 1, 53.
Chowdhury M.M.H., Quaddus M. (2017), Supply chain resilience: conceptualization and scale development using dynamic capability theory, “International Journal of Production Economics”, vol. 188, pp. 185–204.
Chowdhury P., Paul S.K., Kaisar S., Moktadir M.A. (2021), COVID-19 pandemic related supply chain studies: a systematic review, “Transportation Research Part E: Logistics and Transportation Review”, vol. 148, 102271.
Chung H.F., Wang C.L., Huang P.H., Yang Z. (2016), Organizational capabilities and business performance: when and how does the dark side of managerial ties matter?, “Industrial Marketing Management”, vol. 55, pp. 70–82.
Craighead C.W., Blackhurst J., Rungtusanatham M.J., Handfield R.B. (2007), The severity of supply chain disruptions: design characteristics and mitigation capabilities, “Decision Sciences”, vol. 38 no. 1, pp. 131–156.
Daugherty P.J. (2011), Review of logistics and supply chain relationship literature and suggested research agenda, “International Journal of Physical Distribution & Logistics Management”, vol. 41 no. 1, pp. 16–31.
Day M., Fawcett S.E., Fawcett A.M., Magnan G.M. (2013), Trust and relational embeddedness: exploring a paradox of trust pattern development in key supplier relationships, “Industrial Marketing Management”, vol. 42 no. 2, pp. 152–165.
De Goede E., Nel J., Niemann W. (2018), Guiding buyer-supplier relationships through supply chain disruptions: a study of South African 3PLs and clients, “Problems and Perspectives in Management”, vol. 16 no. 2, pp. 113–133.
Downard A., Shee H., Sadler I. (2023), Predicting the success of the supply chain dyadic relationship: a qualitative study of dyads, “IIMB Management Review”, vol. 35 no. 3, pp. 199–214.
Dubey R., Gunasekaran A., Childe S.J., Fosso Wamba S., Roubaud D., Foropon C. (2019), Empirical investigation of data analytics capability and organizational flexibility as complements to supply chain resilience, “International Journal of Production Research”, vol. 59 no. 1, pp. 110–128.
Fawcett S.E., Fawcett A. M., Watson B.J., Magnan G.M. (2012), Peeking inside the black box: toward an understanding of supply chain collaboration dynamics, “Journal of Supply Chain Management”, vol. 48 no. 1, pp. 44–72.
Gedeon I., Fearne A., Poole N. (2009), The role of inter‐personal relationships in the dissolution of business relationships, “Journal of Business & Industrial Marketing”, vol. 24 no. 3/4, pp. 218–226.
Gelderman C.J., Semeijn J., Mertschuweit P.P. (2016), The impact of social capital and technological uncertainty on the strategic performance in buyer-supplier relationships, “Journal of Purchasing and Supply Management”, vol. 22 no. 3, pp. 225–234.
Gelderman C.J., Semeijn J., Feenstra S. (2023), Disruptions due to COVID-19 – the ultimate stress test for supply chain managers, “The International Journal of Integrated Supply Management”, DOI: 10.1504/IJISM.2023.10055720.
Ghadge A., Dani S., Kalawsky R. (2012), Supply chain risk management: present and future scope, “The International Journal of Logistics Management”, vol. 23 no. 3, pp. 313–339.
Gligor D.M., Autry C.W. (2012), The role of personal relationships in facilitating supply chain communications: a qualitative study, “Journal of Supply Chain Management”, vol. 48 no. 1, pp. 24–43.
Gligor D.M., Holcomb M. (2013), The role of personal relationships in supply chains, “The International Journal of Logistics Management”, vol. 24 no. 3, pp. 328–355.
Gligor D.M., Esmark C.L. (2015), Supply chain friends: the good, the bad, and the ugly, “Business Horizons”, vol. 58 no. 5, pp. 517–525.
Golan M.S., Jernegan L.H., Linkov I. (2020), Trends and applications of resilience analytics in supply chain modeling: systematic literature review in the context of the COVID-19 pandemic, “Environment Systems and Decisions”, vol. 40 no. 2, pp. 222–243.
Golicic S.L., Mentzer J.T. (2006), An empirical examination of relationship magnitude, “Journal of Business Logistics”, vol. 27 no. 1, pp. 81–108.
Granovetter M.S. (1973), The strength of weak ties, “American Journal of Sociology”, vol. 78 no. 6, pp. 1360–1380.
Grayson K. (2007), Friendship versus business in marketing relationships, “Journal of Marketing”, vol. 71 no. 4, pp. 121–139.
Hendricks K.B., Singhal V.R. (2003), The effect of supply chain glitches on shareholder wealth, “Journal of Operations Management”, vol. 21 no. 5, pp. 501–522.
Homans, G. C. 1961. Social behavior: Its elementary forms. New York: Harcourt Brace.
Huang Y., Wang Z. (2017), Dual-recycling channel decision in a closed-loop supply chain with cost disruptions, “Sustainability”, vol. 9 no. 11, pp. 1–28.
Hyde K.F., Ryan C., Woodside A.G. (2012), Field guide to case study research in tourism, hospitality and leisure, Emerald, Bingley UK.
Ivanov D. (2021), Supply Chain Viability and the COVID-19 pandemic: a conceptual and formal generalisation of four major adaptation strategies, “International Journal of Production Research”, vol. 59 no. 12, pp. 3535–3552.
Ivanov D., Blackhurst J., Das A. (2021), Supply chain resilience and its interplay with digital technologies: making innovations work in emergency situations, “International Journal of Physical Distribution & Logistics Management”, vol. 51 no. 2, pp. 97–103.
Ivanov D., Das A. (2020), Coronavirus (COVID-19/SARS-CoV-2) and supply chain resilience: a research note, “International Journal of Integrated Supply Management”, vol. 13 no. 1, 90.
Ivanov D., Dolgui A., Sokolov B., Ivanova M. (2017), Literature review on disruption recovery in the supply chain, “International Journal of Production Research”, vol. 55 no. 20, pp. 6158–6174.
Ivanov D., Sokolov B., Dolgui A. (2013), The Ripple effect in supply chains: trade-off ‘efficiency-flexibility-resilience’ in disruption management, “International Journal of Production Research”, vol. 52 no. 7, pp. 2154–2172.
Kahn W.A., Barton M.A., Fellows S. (2013), Organizational crises and the disturbance of relational systems, “Academy of Management Review”, vol. 38 no. 3, pp. 377–396.
Katsaliaki K., Galetsi P., Kumar S. (2021), Supply chain disruptions and resilience: a major review and future research agenda, “Annals of Operations Research”, vol. 319, pp. 965–1002.
Knemeyer A.M., Corsi T.M., Murphy P.R. (2003), Logistics outsourcing relationships: customer perspectives, “Journal of Business Logistics”, vol. 24 no. 1, pp. 77–109.
Lee J.M.Y., Wong E.Y.C. (2021), Suez Canal blockage: an analysis of legal impact, risks and liabilities to the global supply chain, “MATEC Web of Conferences”, 339, 01019.
Manuj I., Mentzer J.T. (2008), Global supply chain risk management, “Journal of Business Logistics”, vol. 29 no. 1, pp. 133–155.
Mentzer J.T., Min S., Zacharia Z.G. (2000), The nature of interfirm partnering in supply chain management, “Journal of Retailing”, vol. 76 no. 4, pp. 549–568.
Mocke K., Niemann W., Kotzé T. (2016), The role of personal relationships between buyers and suppliers of third-party logistics services: a South African perspective, “Acta Commercii”, vol. 16 no. 1, a367.
Nahapiet J., Ghoshal S. (1998), Social capital, intellectual capital and the organizational advantage, “The Academy of Management Review”, vol. 23 no. 2, pp. 242–266.
Natarajarathinam M., Capar I., Narayanan A. (2009), Managing supply chains in times of crisis: a review of literature and insights, “International Journal of Physical Distribution & Logistics Management”, vol. 39 no. 7, pp. 535–573.
Nikookar E., Yanadori Y. (2021), Preparing supply chain for the next disruption beyond COVID-19: managerial antecedents of supply chain resilience, “International Journal of Operations & Production Management”, vol. 42 no. 1, pp. 59–90.
Nyaga G.N., Whipple J.M., Lynch D.F. (2009), Examining supply chain relationships: do buyer and supplier perspectives on collaborative relationships differ?, “Journal of Operations Management”, vol. 28 no. 2, pp. 101–114.
Parker H., Ameen K. (2018), The role of resilience capabilities in shaping how firms respond to disruptions, “Journal of Business Research”, vol. 88, pp. 535–541.
Pettit T.J., Croxton K.L., Fiksel J. (2019), The evolution of resilience in supply chain management: a retrospective on ensuring supply chain resilience, “Journal of Business Logistics”, vol. 40 no. 1, pp. 56–65.
Porterfield T.E., Macdonald J.R., Griffis S.E. (2012), An exploration of the relational effects of supply chain disruptions, “Transportation Journal”, vol. 51 no. 4, pp. 399–427.
Prentice C., Quach S., Thaichon P. (2021), Antecedents and consequences of panic buying: the case of COVID-19, “International Journal of Consumer Studies”, vol. 46 no. 1, pp. 132–146.
Putnam R. (1995), Tuning in, tuning out: the strange disappearance of social capital in America, “Political Science and Politics”, vol. 28 no. 4, pp. 664–687.
Qian C., Seuring S., Wagner R., Dion P.A. (2021), Personal and organizational level relationships in relational exchanges in supply chains – a bottom-up model, “Supply Chain Management”, vol. 26 no. 1, pp. 32–47.
Rao S., Goldsby T.J. (2009), Supply chain risks: a review and typology, “The International Journal of Logistics Management”, vol. 20 no. 1, pp. 97–123.
Rood C., Van den Berg D., Niemann W., Meyer A. (2018), The role of personal relationships in supply chain disruptions: perspectives from buyers and suppliers of logistics services, “Acta Commercii”, vol. 18 no. 1, a608.
Schleper M.C., Gold S., Trautrims A., Baldock D. (2021), Pandemic-induced knowledge gaps in operations and supply chain management: COVID-19’s impacts on retailing, “International Journal of Operations & Production Management”, vol. 41 no. 3, pp. 193–205.
Schorsch T., Wallenburg C.M., Wieland A. (2017), The human factor in SCM: introducing a meta-theory of behavioral supply chain management, “International Journal of Physical Distribution & Logistics Management”, vol. 47 no. 4, pp. 238–262.
Shahed K.S., Azeem A., Ali S.M., Moktadir M.A. (2021), A supply chain disruption risk mitigation model to manage COVID-19 pandemic risk, “Environmental Science and Pollution Research International”, 5 January 2021, pp. 1–16.
Silver A. (1990), Friendship in commercial society: eighteenth-century social theory and modern sociology, “American Journal of Sociology”, vol. 95 no. 6, pp. 1474–1504.
Singh N.P., Singh S. (2019), Building supply chain risk resilience, “Benchmarking”, vol. 26 no. 7, pp. 2318–2342.
Singh S., Kumar R., Panchal R., Tiwari M.K. (2020), Impact of COVID-19 on logistics systems and disruptions in food supply chain, “International Journal of Production Research”, vol. 59 no. 7, pp. 1993–2008.
Skipper J.B., Hanna J.B. (2009), Minimizing supply chain disruption risk through enhanced flexibility, “International Journal of Physical Distribution & Logistics Management”, vol. 39 no. 5, pp. 404–427.
Tang C.S. (2006), Robust strategies for mitigating supply chain disruptions, “International Journal of Logistics Research and Applications”, vol. 9 no. 1, pp. 33–45.
Thun J.H., Hoenig D. (2011), An empirical analysis of supply chain risk management in the German automotive industry, “International Journal of Production Economics”, vol. 131 no. 1, pp. 242–249.
Trent R.J. (2022), You’ve suffered a supply chain disruption: now what?, “Supply Chain Management Review”, vol. 26 no. 2, pp. 32–39.
Tsvetkova A. (2021), Human actions in supply chain management: the interplay of institutional work and institutional logics in the Russian Arctic, “International Journal of Physical Distribution & Logistics Management”, vol. 51 no. 8, pp. 837–858.
Tukamuhabwa B.R., Stevenson M., Busby J., Zorzini M. (2015), Supply chain resilience: definition, review and theoretical foundations for further study, “International Journal of Production Research”, vol. 53 no. 18, pp. 5592–5623.
Van der Walt M., Niemann W., Meyer A. (2021), The role of personal relationships in supply chain risk information sharing: perspectives from buyers and suppliers of logistics services, “South African Journal of Economic and Management Sciences”, vol. 24 no. 1.
Van Hoek R. (2020), Research opportunities for a more resilient post-COVID-19 supply chain – closing the gap between research findings and industry practice, “International Journal of Operations & Production Management”, vol. 40 no. 4, pp. 341–355.
Van Hoek R. (2020), Responding to COVID-19 supply chain risks – insights from supply chain change management, total cost of ownership and supplier segmentation theory, “Logistics”, vol. 4 no. 4.
Van Hoek R., Dobrzykowski D. (2021), Towards more balanced sourcing strategies – are supply chain risks caused by the COVID-19 pandemic driving reshoring considerations?, “Supply Chain Management”, vol. 26 no. 6, pp. 689–701.
Van Hoek, R., Loseby, D. (2021), Beyond COVID-19 supply chain heroism, no dust settling yet – lessons learned at Rolls Royce about advancing risk management thinking, “International Journal of Operations & Production Management”, vol. 41 no. 10, pp. 1579–1592.
Van Staden T., Niemann W., Meyer A. (2020), Interpersonal and inter-organisational relationships in supply chain integration: an exploration of third-party logistics providers in South Africa, “Acta Commercii”, vol. 20 no. 1, pp. 1–13.
Vanpoucke E., Ellis S.C. (2019), Building supply-side resilience – a behavioural view, “International Journal of Operations & Production Management”, vol. 40 no. 1, pp. 11–33.
Wagner S.M., Bode C. (2008), An empirical examination of supply chain performance along several dimensions of risk, “Journal of Business Logistics”, vol. 29 no. 1, pp. 307–325.
Wagner S.M., Bode C., Koziol P. (2009), Supplier default dependencies: empirical evidence from the automotive industry, “European Journal of Operational Research”, vol. 199 no. 1, pp. 150–161.
Wang B., Kang Y., Childerhouse P., Huo B. (2018), Service supply chain integration: the role of interpersonal relationships, “Industrial Management & Data Systems”, vol. 118 no. 4, pp. 828–849.
Wieland A., Wallenburg C.M. (2013), The influence of relational competencies on supply chain resilience: a relational view, “International Journal of Physical Distribution & Logistics Management”, vol. 43 no. 4, pp. 300–320.
Wieland A., Handfield R., Durach C.F. (2016), Mapping the landscape of future research themes in supply chain management, “Journal of Business Logistics”, vol. 37 no. 3, pp. 1–8.
Wong C.W., Lirn T.C., Yang C.C., Shang K.C. (2020), Supply chain and external conditions under which supply chain resilience pays: an organizational information processing theorization, “International Journal of Production Economics”, vol. 226, art. 107610.
Xu S., Zhang X., Feng L., Yang W. (2020), Disruption risks in supply chain management: a literature review based on bibliometric analysis, “International Journal of Production Research”, vol. 58 no. 11, pp. 3508–3526.
Yıldızhan Ç., Anginer D., Irvine P.J., Zhang R. (2023), It’s personal, not strictly business: the role of personal relationships in the supply chain, SSRN 4514889.
Zhou K.Z., Zhang Q., Sheng S., Xie E., Bao Y. (2014), Are relational ties always good for knowledge acquisition? Buyer–supplier exchanges in China, “Journal of Operations Management”, vol. 32 no. 3, pp. 88–98.
Zhu Q., Krikke H., Caniëls M. (2016), Collaborate or not? A system dynamics study on disruption recovery, “Industrial Management & Data Systems”, vol. 116 no. 2, pp. 271–290.
Downloads
Published
Issue
Section
License
Copyright (c) 2024 WSB Merito University in Wroclaw
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
The aim of CEREM is to make scientific work available in accordance with the principle of open access. The rules mentioned below are important, as they enable CEREM and its publisher, the WSB Merito University in Wroclaw, to distribute the scientific work to a wide public while complying with specific legal requirements, at the same time protecting the rights of the authors.
The author transfers to the WSB Merito University in Wroclaw, free of charge and without territorial limitations, with all proprietary copyrights to the said piece of work in the understanding of the act of 4th February 1994 on copyrights and derivative rights (Journal of Laws of 1994, no. 24, item 83, as amended) on an exclusivity basis, i.e. the rights to:
1. Make the piece of work in question available via the Digital Library established by the WSB Merito University in Wroclaw.
2. Produce, record and reproduce in multiple copies the piece of work using any techniques whatsoever, including printing, reprography, magnetic recording and digital processing, and particularly its reproduction by recording on CDs and similar data carriers,
3. Use fragments of the piece of work for promotional purposes in publications, promotional materials, the Internet and Intranet type networks managed by the WSB Merito University in Wroclaw.
4. Store the piece of work into computer databases managed by the WSB Merito University in Wroclaw.
5. Copy and reproduce the piece of work using photo-mechanic technologies other than those commonly known at the time of the signature hereof (photocopies, Xerox copies etc.),
6. Process the piece of work, transferring it into an electronic form, and distribute it on the Internet without limitations.
