The impact of supply chain complexities on supply chain resilience: the mediating effect of big data analytics

TLDR

Supply chains are becoming increasingly complex, and unmanaged complexity can harm firms, yet the role of big data analytics in mitigating distinct types of supply‑chain complexity remains unclear. The study aims to empirically examine how big data analytics, structural and dynamic supply‑chain complexities affect resilience, and whether BDA mediates these relationships. Using a sample of 166 Pakistani firms, the authors conducted an empirical analysis to assess the direct and mediating effects of BDA on supply‑chain resilience. Results show that structural complexity boosts resilience directly, dynamic complexity has no direct effect but influences resilience through BDA, and BDA mediates both complexities, offering strategic guidance on where to invest to enhance resilience.

Abstract

Supply chains (SC) are increasingly complex and if the resulting complexity is not managed effectively, it could lead to adverse consequences for the firm. The effect big data analytics (BDA) can have on managing distinct types of SC complexity is not well-understood in the extant literature. Based on a sample of 166 firms from Pakistan, this study empirically investigates the effects of BDA, and structural and dynamic SC complexities, on SC resilience. The study also investigates the role of BDA as a mediator between SC complexities and SC resilience. We find that structural SC complexity positively affects SC resilience, while there doesn't seem to be a significant impact for dynamic SC complexity. We also find a mediating effect of BDA for structural and dynamic SC complexities on SC resilience. Our results contribute to the extant literature investigating BDA and SC resilience by offering a more nuanced understanding of distinct types of SC complexities. We establish a more critical understanding of the role of BDA in mediating the critical link between the two types of SC complexity and SC resilience. The proposed model highlights that there are both direct and indirect effects between structural SC complexity and SC resilience, however dynamic SC complexity only influences SC resilience via BDA. These findings provide strategic insights for SC executives as to where to invest in BDA to build much-needed SC resilience.