Supply Chain Disruptions and Corporate Performance

  • Kevin B. Hendricks
  • Vinod R. Singhal


Managers are becoming increasingly aware that their companys reputation, earnings consistency, and ability to deliver better shareholder returns are increasingly dependent on how well they manage supply chain disruptions. Although firms have always faced the risk of supply chain disruptions, the attention it receives has increased dramatically in recent years. This is likely driven by at least four developments. First, supply chains have become more complex due to globalization, outsourcing, single sourcing, and the focus on removing slack from supply chains. While many of these strategies have improved performance, these strategies have also made supply chains more prone to disruptions.


Supply Chain Stock Return Senior Executive Supply Chain Performance Operating Income 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


  1. 1.
    Aviv Y (2001) The effect of collaborative forecasting on supply chain performance. Manag Sci 47:1326–1343MATHCrossRefGoogle Scholar
  2. 2.
    Barnes-Schuster D, Bassok Y, Anupindi R (2002) Coordination and flexibility in supply contracts with options. Manuf Serv Oper Manag 4:171–207CrossRefGoogle Scholar
  3. 3.
    Billington C, Johnson B, Triantis A (2002) A real options perspective on supply chain management in high technology. J Appl Corp Finance 15(2):32–43CrossRefGoogle Scholar
  4. 4.
    Cachon G, Fisher M (2000) Supply chain inventory management and the value of shared information.. Manag Sci 46:1032–1048MATHCrossRefGoogle Scholar
  5. 5.
    Cachon G, Lariviere MA (2001) Contracting to assure supply: How to share demand forecasts in a supply chain.. Manag Sci 47:629–646MATHCrossRefGoogle Scholar
  6. 6.
    Casey N, Pasztor A (2007) Safety agency, mattel clash over disclosures. Wall Str J, 4 September, A1Google Scholar
  7. 7.
    Chopra S, Sodhi MS (2004) Managing risk to avoid supply-chain breakdown. Sloan Manag Rev 46(1):53–61Google Scholar
  8. 8.
    Craighead CW, Blackhurst J, Rungtusanatham MJ, Handfield RB (2007) The severity of supply chain disruptions: design characteristics and mitigation capabilities. Decis Sci 38:131–156CrossRefGoogle Scholar
  9. 9.
    Fairclough G (2008) How a Heparin maker in China tackles risks—plant now supplying US must make frequent checks to monitor difficult market. Wall Str J, 10 March, B1.Google Scholar
  10. 10.
    Ferrer J, Karlberg J, Hintlian J (2007) Integration: the key to global success. Supply Chain Manag Rev, March 1–4Google Scholar
  11. 11.
    Fisher M (1997) What is the right supply chain for your product?. Harvard Bus Rev 75(2):105–116Google Scholar
  12. 12.
    Frohlich MT, Westbrook R (2001) Arcs of Integration: an international study of supply chain strategies. J Oper Manag 19:185–200CrossRefGoogle Scholar
  13. 13.
    Hendricks KB, Singhal VR (2003) The effect of supply chain glitches on shareholder value. J Oper Manag 21:501–522CrossRefGoogle Scholar
  14. 14.
    Hendricks KB, Singhal VR (2005) An Empirical analysis of the effect of supply chain disruptions on long-run stock price performance and risk of the firm. Prod and Oper Manag 14:35–52CrossRefGoogle Scholar
  15. 15.
    Hendricks KB, Singhal VR (2005) Association between supply chain glitches and operating performance. Manag Sci 51:695–711CrossRefGoogle Scholar
  16. 16.
    Kesmodel D (2008) Oversight ‘Flaw’ Led to meat recall—lax monitoring seen at plant’s cattle pens before closure. Wall Str J, 11 March, B1.Google Scholar
  17. 17.
    Kilgore M (2003) Mitigating supply chain risks. White paper, Chainalytics LLCGoogle Scholar
  18. 18.
    Kleindorfer PR, Saad GH (2005) Managing disruption risks in supply chain. Prod Oper Manag J 14:53–68CrossRefGoogle Scholar
  19. 19.
    Lakenan B, Boyd D, Frey E (2001) Why Cisco fell:outsourcing and its peril. strategy+business. Accessed 17 Jan 2011Google Scholar
  20. 20.
    Lee H, Padamanabhan P, Whang S (1997) Information distortion in supply chain: The bullwhip effect. Manag Sci 43:546–558MATHCrossRefGoogle Scholar
  21. 21.
    Lunsford JL (2007) Jet Blues: Boeing scrambles to repair problems with new plane—layers of outsourcing slow 787 production; ‘Hostage to Suppliers’. Wall Str J, 7 December, A1Google Scholar
  22. 22.
    Milner JM, Kouvelis P (2002) On the complementary value of accurate demand information and production and supplier flexibility. Manuf Serv Oper Manag 4:99–113CrossRefGoogle Scholar
  23. 23.
    Narasimhan R, Jayaram J (1998) Casual linkages in supply chain management: an exploratory study of North American manufacturing firms. Decis Sci 29:579–605CrossRefGoogle Scholar
  24. 24.
    Radjou N (2002) Adapting to supply network change. Forrester Research Inc, Cambridge MAGoogle Scholar
  25. 25.
    Rosenzweig ED, Roth A, Dean JW (2003) The influence of an integration strategy on competitive capabilities and business performance: an exploratory study of consumer products manufacturers. J Oper Manag 21:437–456CrossRefGoogle Scholar
  26. 26.
    Sheffi Y (2005) The resilient enterprise: overcoming vulnerability for competitive advantage. MIT Press, MassachusettsGoogle Scholar
  27. 27.
    Shin H, Collier DA, Wilson DD (2000) Supply management orientation and supplier/buyer performance. J Oper Manag 18:317–333CrossRefGoogle Scholar
  28. 28.
    Smyrlis L (2006) Risky Business: there has been a significant increase in external risk during the past five years and supply chain is the major concern, New survey shows. Can Transp and Logist, June 1, 14Google Scholar
  29. 29.
    Taylor TA (2002) Supply chain coordination under channel rebates with sales effort effects. Manag Sci 48:992–1007MATHCrossRefGoogle Scholar
  30. 30.
    Tang C (2006) Robust strategies for mitigating supply chain disruptions. Int J Logist Res Appl 9:33–45CrossRefGoogle Scholar
  31. 31.
    Tomlin B (2006) On the value of mitigation and contingency strategies for managing supply chain disruptions risks. Manag Sci 52:639–657MATHCrossRefGoogle Scholar

Copyright information

© Springer-Verlag London Limited 2012

Authors and Affiliations

  1. 1.School of Business & EconomicsWilfrid Laurier UniversityWaterlooCanada
  2. 2.College of ManagementGeorgia Institute of TechnologyAtlantaUSA

Personalised recommendations