A path to build supply chain cyber-resilience through absorptive capacity and visibility: Two empirical studies

Abstract

Little is known about cyber-resilience in supply chain management . Using two empirical studies, this paper examines how visibility impacts cyber-resilience in times of data breaches. Two new antecedents (power and absorptive capacity) are introduced to see how they impact cyber-resilience through visibility. The social exchange theory provided theoretical explanations for the relationships. Findings in Study-1 revealed that powerful buyers and supply chain absorptive capacity contribute to visibility to create cyber-resilience, while dominant suppliers are reluctant to share information in visibility practice. In a scenario-based experiment on supply chain and operations managers, we scrutinized the role of visibility by manipulating timeliness and accuracy in Study 2. Study 2 revealed that supply chain and operations managers believed that companies and their suppliers could avoid, maintain, and recover from disruption when real-time information is available. • SCAC is positively related to supply chain visibility (SCV). • Supplier power negatively moderates the relationship between SCAC and SCV. • Buyer power positively moderates the relationship between SCAC and SCV. • SCV is positively related to supply chain cyber resilience. • SCAC = Supply chain absorptive capacity.