Research

In supply chain management, uncertainty and asymmetric information pose significant challenges. However, the unique impacts of these challenges on supply chain response strategies remain unclear. Drawing upon Information Processing Theory (IPT), this research conceptually and empirically disentangles uncertainty and asymmetric information. It examines how firms employ supply chain response strategies—specifically bridging and buffering—to navigate these challenges and bolster supply chain resilience. Utilizing survey and secondary data, we find that uncertainty intensifies the implementation of bridging and buffering strategies. In contrast, asymmetric information generally undermines these strategies’ effectiveness. Importantly, such influences are moderated by the dependence between focal firms in the supply chain. These insights offer valuable theoretical and managerial implications, underscoring strategic approaches for navigating the complexities of volatile business environments. By adopting appropriate response strategies, firms can cope with uncertainty and asymmetric information and turn them into opportunities for growth and success.

Keywords: uncertainty, asymmetric information, response strategy, bridging, buffering, supply chain resilience, dependence

The evolving global landscape, marked by geopolitical tensions and crises, has brought to the forefront the critical need for a comprehensive approach in supply chain analysis. This shift urges moving past the conventional emphasis on cost reduction, which has long dominated global sourcing strategies, to address broader contextual factors. It underscores the imperative for supply chains to balance the pursuit of stability—with its benefits of enhanced predictability and resource allocation efficiency—with the embrace of innovativeness, essential for navigating external shocks. This nuanced backdrop reveals that while stability plays a pivotal role in reinforcing control and predictability, an overemphasis may limit a supply chain's agility in responding to market shifts. Similarly, although innovativeness promotes adaptability, it necessitates careful management to mitigate associated risks. This interplay between stability and innovativeness calls for a judicious approach in supply chain management to effectively harness the strengths of each. Drawing on Panarchy Theory (Hollins 1986), this research aims to understand how external shocks, like geopolitical conflicts, shift the equilibrium of stability and innovativeness in supply chain management. Utilizing FactSet Revere Supply Chain Relationship database, we empirically investigate the dynamics of stability and innovativeness from a supply chain network perspective. Viewing supply chains through the lens of social-ecological systems and delving into their adaptive cycles, this study aims to develop actionable strategies that strike an equilibrium between operational efficiency and the agility needed to adapt to market fluctuations and environmental uncertainties. These strategies strive to empower supply chains to thrive in an increasingly complex and unpredictable world.

This paper explores the interplay between team size and risk tolerance in the context of escalation of commitment during new product development projects. Through experimental studies, it examines how varying team sizes and individual risk preferences influence the propensity to continue investing in failing projects. The findings suggest that larger teams may offer a protective effect against escalation due to diverse perspectives, while individual risk tolerance can exacerbate commitment to suboptimal courses of action. This research contributes to understanding the dynamics of team decision-making and offers insights for managing product development risks effectively.