Supply chain plasticity during a global disruption: Effects of CEO and supply chain networks on operational repurposing

Abstract

Abstract Global disruptions can cause unprecedented variability in demand and supply, necessitating rapid repurposing of supply chains. This research investigates supply chain plasticity and a corresponding unique strategy—operational repurposing. Resource dependence theory and social network theory are used to assess the effects of firms’ network positions on firm engagement in operational repurposing. Social network analysis and econometric models are utilized to analyze 426 995 supply chain contractual relationships and 64,750 CEO network relationships embedded in 136 firms. The results show that in both supply chain and CEO networks, entrepreneurial network position increases a firm's likelihood to repurpose existing operations, while prominent position reduces it. Furthermore, CEO entrepreneurial network position enhances the positive relationship between supply chain entrepreneurial network position and the likelihood of repurposing. This research provides a deeper understanding of how structural networks affect a firm's supply chain plasticity. It helps industry and policy leaders identify suitable firms to prepare their supply chains in the event repurposing is required.