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Operational resilience, disruption, and efficiency: Conceptual and empirical analyses
Dominic Essuman1,2, Nathaniel Boso2,3,4, Jonathan Annan1,4
1Department of Supply Chain and Information Systems, Kwame Nkrumah University of Science and Technology, Ghana.
International Journal of Production Economics
|April 16, 2020
Summary
Operational resilience, comprising disruption absorption and recoverability, positively impacts operational efficiency. The effectiveness of each component varies with the level of operational disruption, offering insights for businesses.
Area of Science:
- Business Management
- Operations Management
- Supply Chain Management
Background:
- Operational resilience is crucial for business continuity amidst disruptions.
- Understanding its components' distinct impacts on efficiency is vital.
- Existing research often overlooks the conditional effects of resilience strategies.
Purpose of the Study:
- To develop and test a multi-dimensional model of operational resilience.
- To investigate the relationship between operational resilience components and operational efficiency.
- To examine how operational disruption levels moderate these relationships.
Main Methods:
- Empirical testing of hypotheses using primary data from 259 firms in a sub-Saharan African economy.
- Structural Equation Modeling (SEM) applied for data analysis.
- Conceptualization of operational resilience as disruption absorption and recoverability.
Main Results:
- Both disruption absorption and recoverability positively influence operational efficiency.
- Disruption absorption's positive effect on efficiency is amplified under high operational disruption.
- Recoverability's positive effect on efficiency is stronger under low operational disruption.
Conclusions:
- The efficiency value of operational resilience is contingent on its specific components and the prevailing disruption context.
- Firms must strategically deploy resilience components based on anticipated disruption levels.
- This study advances nuanced understanding of operational resilience's impact on efficiency.
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