Supply Chain Disruption Recovery in the Evolving Crisis—Evidence from the Early COVID-19 Outbreak in China

Di Fan, Yongjia Lin, Maggie Fu, Andy Yeung, Xuanyi Shi

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)
1 Downloads (Pure)

Abstract

The speed of recovery from supply chain disruption has been identified as the predominant factor in building a resilient supply chain. However, COVID-19 as an example of an evolving crisis may challenge this assumption. Infection risk concerns may influence production resumption decision-making because any incidents of infection may lead to further shutdowns of production lines and undermine firms’ long-term cash flows. Sampling 244 production resumption announcements by Chinese manufacturers in the early COVID-19 crisis (February–March 2020), our analysis shows that, generally, investors react positively to production resumptions. However, investors perceived the earlier production resumptions were higher risk (indicated by declined stock price). Such concerns were exacerbated by more locally confirmed cases of COVID-19 but were less salient for manufacturers with high debts (liquidity pressure). This study calls for a reassessment of the current disruption management mindset in response to new evolving crises (e.g., COVID-19) and provides theoretical, practical, and policy implications for building resilient supply chains.
Original languageEnglish
Article number103202
Pages (from-to)1-22
Number of pages23
JournalTransportation Research Part E: Logistics and Transportation Review
Volume176
Early online date8 Jun 2023
DOIs
Publication statusPublished online - 8 Jun 2023

Bibliographical note

Funding Information:
This work was supported by the Higher Education Fund of the Macao SAR Government [Grant reference no.: HSS-MUST-2020-10], Fujian Provincial Federation of Social Sciences [Grant reference no.: FJ2022C056], and Xiamen University of Technology [Grant reference no.: 4010522039].

Publisher Copyright:
© 2023 Elsevier Ltd

Keywords

  • COVID-19
  • risk management
  • supply chain disruption
  • recovery
  • secondary data
  • Supply chain disruption
  • Secondary data
  • Risk management
  • Recovery

Fingerprint

Dive into the research topics of 'Supply Chain Disruption Recovery in the Evolving Crisis—Evidence from the Early COVID-19 Outbreak in China'. Together they form a unique fingerprint.

Cite this