A Natural Resource Scarcity Typology: Theoretical Foundations and Strategic Implications for Supply Chain Management

Abstract

World population growth and increased consumption stemming from economic leveling are leading to scarcity of a number of natural resources on a global scale. Scarcity of critical natural resources such as oil, water, food, and precious metals has the potential to greatly impact commercial activity as the twenty‐first century progresses. The challenge of continuing to provide needed goods and services in the face of these constraints falls to supply chain managers, who are ultimately responsible for delivering utility to customers. Unfortunately, there has been almost no research focused on supply chain strategies aimed at mitigating natural resource scarcity’s (NRS) potential effects. The current research positions NRS as a supply chain risk and proposes an NRS typology based on key resource attributes. Supply chain mitigation strategies to counter each resource status are offered, with an overall objective of improving supply chain performance. The study recommends future research aimed at further developing theory and methods for countering NRS based on resource, systems and behavioral theories. In addition, this study has critical implications for practitioners faced with the growing threat of NRS in their supply chains.