Abstract
For leadership, responding to supply chain disruptions can be paradoxical. Supply chain disruptions can rattle the stability and operational norms of a company and its stakeholders. Without an unwavering effort to contain the damage, such disruptions can easily propagate and become even more damaging. This assertion suggests that decisive leadership is fit for the purpose. However, supply chain disruptions often sever multiple value-generating streams, creating a ripple effect across organizations. Re-establishing production links in a web of inter-organizational exchanges requires careful examination of what is at stake by purchasing and supply managers. This alternative assertion suggests that an adaptive leader is fit for the purpose. The concurrent need for decisiveness in leadership and adaptiveness in leadership can be paradoxical. In this study, we explore this issue by assessing how leader’s adaptive decision-making (ADM) affects the extent of operational performance damage caused by different forms of supply chain disruptions. Using paradox and leadership theories, we offer hypotheses related to unexpected, complicated and enduring supply chain disruptions. We empirically test our hypotheses using secondary (financial) and primary (managerial assessment) data from a cross-section of 251 manufacturing firms. Results show a concave curvilinear relationship between leader’s ADM and operational damage from supply chain disruptions, suggesting that moderate levels of ADM are optimal. Higher ADM is particularly effective to diminish ripple effects in the face of rare disruptions. Instead, low ADM is more effective in the face of unexpected and complicated disruptions.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Aiken, L. S., & West, S. G. (1991). Multiple regression: Testing and interpreting interactions. Newbury Park: Sage Publications.
Ambulkar, S., Blackhurst, J. V., & Cantor, D. E. (2016). Supply chain risk mitigation competency: an individual-level knowledge-based perspective. International Journal of Production Research, 54(5), 1398–1411.
Ansoff, H. I. (1975). Managing strategic surprise by response to weak signals. California Management Review, 18(2), 21–33.
Azadegan, A., & Jayaram, J. (2018) Resiliency in supply chain systems: A triadic framework using family resilience model. In Supply Chain Risk Management (pp. 269–288). Singapore: Springer.
Bauer, J. C., Schmitt, P., Morwitz, V. G., & Winer, R. S. (2013). Managerial decision making in customer management: adaptive, fast and frugal? Journal of the Academy of Marketing Science, 41(4), 436–455.
Bechky, B. A., & Okhuysen, G. A. (2011). Expecting the unexpected? How SWAT officers and film crews handle surprises. Academy of Management Journal, 54(2), 239–261.
Bedell-Avers, K. E., Hunter, S. T., & Mumford, M. D. (2008). Conditions of problem-solving and the performance of charismatic, ideological, and pragmatic leaders: A comparative experimental study. The Leadership Quarterly, 19(1), 89–106.
Bigley, G. A., & Roberts, K. H. (2001). The incident command system: High-reliability organizing for complex and volatile task environments. Academy of Management Journal, 44(6), 1281–1299.
Bode, C., & Wagner, S. M. (2015). Structural drivers of upstream supply chain complexity and the frequency of supply chain disruptions. Journal of Operations Management, 36(1), 215–228.
Boin, A., & Lagadec, P. (2000). Preparing for the future: Critical challenges in crisis management. Journal of Contingencies and Crisis Management, 8(4), 185–191.
Brandon-Jones, E., Squire, B., Autry, C. W., & Petersen, K. J. (2014). A contingent resource-based perspective of supply chain resilience and robustness. Journal of Supply Chain Management, 50(3), 55–73.
Cavanaugh, J. C., Gelles, M. G., Reyes, G., Civiello, C. L., & Zahner, M. (2008). Effectively planning for and managing major disasters. The Psychologist-Manager Journal, 11(2), 221–239.
Collins, J. (2005). Level 5 leadership: The triumph of humility and fierce resolve. Harvard Business Review, 7–8, 136.
Cousins, P. D., Giunipero, L., Handfield, R. B., & Eltantawy, R. (2006). Supply management’s evolution: Key skill sets for the supply manager of the future. International Journal of Operations and Production Management, 26(7), 822–844.
Craighead, C. W., Blackhurst, J., Rungtusanatham, M. J., & Handfield, R. B. (2007). The severity of supply chain disruptions: Design characteristics and mitigation capabilities. Decision Sciences, 38(1), 131–156.
Culp, S. (2013) Supply chain disruption a major threat to business. Forbes. Retrived from.
Cunha, M. P., Clegg, S. R., & Kamoche, K. (2006). Surprises in management and organization: Concept, sources and a typology. British Journal of Management, 17(4), 317–329.
Defee, C. C., Stank, T. P., Esper, T. L., & Mentzer, J. T. (2009). The role of followers in supply chains. Journal of Business Logistics, 30(2), 65–84.
Denison, D. R., Hooijberg, R., & Quinn, R. E. (1995). Paradox and performance: Toward a theory of behavioral complexity in managerial leadership. Organization Science, 6(5), 524–540.
Deverell, E. (2010). Flexibility and rigidity in crisis management and learning at Swedish public organizations. Public Management Review, 12(5), 679–700.
Devitt, K. R., & Borodzicz, E. P. (2008). Interwoven leadership: The missing link in multi-agency major incident response. Journal of Contingencies and Crisis Management, 16(4), 208–216.
Dittman, P. (2014). Game-changing trends in supply chain: Managing risk in the global supply chain. The Global Supply Chain Institute Report 3.
Dolgui, A., Ivanov, D., & Sokolov, B. (2018). Ripple effect in the supply chain: An analysis and recent literature. International Journal of Production Research, 56(1–2), 414–430.
Dooley, K. J., & Lichtenstein, B. (2008) Research methods for studying the complexity dynamics of leadership. Complexity leadrship. part I: Conceptual foundation (pp 269–290).
DuBrin, A. J. (2014). Personal attributes and behaviors of effective crisis leaders. In Handbook of research on crisis leadership in organizations. Northamton: Edward Elgar Publishing.
Dutton, J. E. (1986). The processing of crisis and non‐crisis strategic issues. Journal of Management Studies, 23(5), 501–517.
Dynes, R., Quarantelli, E. L., & Kreps, G. (1981). A perspective on disaster planning. Disaster Research Center, University of Delaware, Newark, Delaware.
Eisenstat, R. A., Beer, M., Foote, N., Fredberg, T., & Norrgren, F. (2008). The uncompromising leader. Harvard Business Review, 86(7–8), 50.
Ellinger, A., & Ellinger, A. D. (2013). Leveraging human resource development expertise to improve supply chain managers’ skills and competencies. European Journal of Training and Development, 38(1/2), 118–135.
Essex, A., Subramanian, N., & Gunasekaran, A. (2016). The relationship between supply chain manager capabilities and performance: empirical evidence. Production Planning and Control, 27(3), 198–211.
Fawcett, S. E., Fawcett, S. E., Andraski, J. C., Fawcett, A. M., & Magnan, G. M. (2010). The indispensible supply chain leader. Supply Chain Management Review, 14(5), 22–29.
Floricel, S., & Miller, R. (2001). Strategizing for anticipated risks and turbulence in large-scale engineering projects. International Journal of Project Management, 19(8), 445–455.
Gammelgaard, B., & Larson, P. D. (2001). Logistics skills and competencies for supply chain management. Journal of Business Logistics, 22(2), 27–50.
Geraldi, J. G., Lee-Kelley, L., & Kutsch, E. (2010). The Titanic sunk, so what? Project manager response to unexpected events. International Journal of Project Management, 28(6), 547–558.
Ginter, P. M., Duncan, W. J., McCormick, L. C., Rucks, A. C., Wingate, M. S., & Abdolrasulnia, M. (2006). Effective response to large-scale disasters: The need for high-reliability preparedness networks. International Journal of Mass Emergencies and Disasters, 24(3), 331.
Giunipero, L. C., & Aly Eltantawy, R. (2004). Securing the upstream supply chain: A risk management approach. International Journal of Physical Distribution and Logistics Management, 34(9), 698–713.
Haddon, A., Loughlin, C., & McNally, C. (2015). Leadership in a time of financial crisis: What do we want from our leaders? Leadership and Organization Development Journal, 36(5), 612–627.
Hannah, S. T., Balthazard, P. A., Waldman, D. A., Jennings, P. L., & Thatcher, R. W. (2013). The psychological and neurological bases of leader self-complexity and effects on adaptive decision-making. Journal of Applied Psychology, 98(3), 393.
Harvey, M. G., & Richey, R. G. (2001). Global supply chain management: The selection of globally competent managers. Journal of International Management, 7(2), 105–128.
Heifetz, R., Grashow, A., & Linsky, M. (2009). Leadership in a (permanent) crisis. Harvard Business Review, 87(7/8), 62–69.
Hendricks, K. B., & Singhal, V. R. (2003). The effect of supply chain glitches on shareholder wealth. Journal of Operations Management, 21(5), 501–522.
House, R. J. (1971). A path goal theory of leader effectiveness. Administrative Science Quarterly 321–339.
Howell, J. M., & Shea, C. M. (2006). Effects of champion behavior, team potency, and external communication activities on predicting team performance. Group and Organization Management, 31(2), 180–211.
Hult, G. T. M., Ketchen, D. J., & Chabowski, B. R. (2007). Leadership, the buying center, and supply chain performance: A study of linked users, buyers, and suppliers. Industrial Marketing Management, 36(3), 393–403.
Hunt, J. G. (2004). Task leadership. In G. R. Goethels, G. J. Sorensen, & J. M. Burns (Eds.), Encyclopedia of leadership. Thousand Oaks: Sage.
Hunt, J. G., Boal, K. B., & Dodge, G. E. (1999). The effects of visionary and crisis-responsive charisma on followers: An experimental examination of two kinds of charismatic leadership. The Leadership Quarterly, 10(3), 423–448.
Hunter, S. T., Bedell-Avers, K. E., & Mumford, M. D. (2009). Impact of situational framing and complexity on charismatic, ideological and pragmatic leaders: Investigation using a computer simulation. The Leadership Quarterly, 20(3), 383–404.
Ivanov, D., & Dolgui, A. (2018). Low-Certainty-Need (LCN) supply chains: a new perspective in managing disruption risks and resilience. International Journal of Production Research 1–18.
Ivanov, D., Sokolov, B., & Dolgui, A. (2014). The ripple effect in supply chains: Trade-off ‘efficiency-flexibility-resilience’ in disruption management. International Journal of Production Research, 52(7), 2154–2172.
James, E. H., & Wooten, L. P. (2005). Leadership as (Un) usual: How to display competence in times of crisis. Organizational Dynamics, 34(2), 141–152.
Ketchen, D. J., Wowak, K. D., & Craighead, C. W. (2014). Resource gaps and resource orchestration shortfalls in supply chain management: The case of product recalls. Journal of Supply Chain Management, 50(3), 6–15.
Kovoor-Misra, S. (2002). Boxed-in:: Top managers' propensities during crisis issue diagnosis. Technological Forecasting and Social Change, 69(8), 803–817.
Lampel, J., Shamsie, J., & Shapira, Z. (2009). Experiencing the improbable: Rare events and organizational learning. Organization Science, 20(5), 835–845.
Lewis, M. W. (2000). Exploring paradox: Toward a more comprehensive guide. Academy of Management Review, 25(4), 760–776.
Li, X., Wu, Q., Holsapple, C. W., & Goldsby, T. (2017). An empirical examination of firm financial performance along dimensions of supply chain resilience. Management Research Review, 40(3), 254–269.
Lind, J. T., & Mehlum, H. (2010). With or without U? The appropriate test for a U-shaped relationship. Oxford Bulletin of Economics and Statistics, 72(1), 109–118.
Lukina, I., Azadegan, A., Hooker, R., & Lucianetti, L. (2017). Leadership in the face of major supply chain disruptions: baseline and contextual traits. In Academy of Management Proceedings 2017 (vol. 1, p. 15644). Briarcliff Manor, NY 10510: Academy of Management.
Lüscher, L. S., & Lewis, M. W. (2008). Organizational change and managerial sensemaking: Working through paradox. Academy of Management Journal, 51(2), 221–240.
Macdonald, J. R., & Corsi, T. M. (2013). Supply chain disruption management: Severe events, recovery, and performance. Journal of Business Logistics, 34(4), 270–288.
Mangan, J., & Christopher, M. (2005). Management development and the supply chain manager of the future. The International Journal of Logistics Management, 16(2), 178–191.
Manuj, I., & Mentzer, J. T. (2008). Global supply chain risk management. Journal of Business Logistics, 29(1), 133–155.
Muffet-Willett, S., & Kruse, S. (2009). Crisis leadership: Past research and future directions. Journal of Business Continuity and Emergency Planning, 3(3), 248–258.
Mulder, M., Ritsema van Eck, J. R., & De Jong, R. D. (1971). An organization in crisis and non-crisis situations. Human Relations, 24(1), 19–41.
Novak, D. (2009). The Education of an Accidental CEO: Lessons Learned from the Trailer Park to the Corner Office. Crown Business.
Overstreet, R. E., Hanna, J. B., Byrd, T. A., Cegielski, C. G., & Hazen, B. T. (2013). Leadership style and organizational innovativeness drive motor carriers toward sustained performance. The International Journal of Logistics Management, 24(2), 247–270.
Özçelik, G., & Cenkci, T. (2014). Moderating effects of job embeddedness on the relationship between paternalistic leadership and in-role job performance. Procedia-Social and Behavioral Sciences, 150, 872–880.
Park, Y., Hong, P., & Roh, J. J. (2013). Supply chain lessons from the catastrophic natural disaster in Japan. Business Horizons, 56(1), 75–85.
Parker, G. G., & Anderson, E. G. (2002). From buyer to integrator: The transformation of the supply-chain manager in the vertically disintegrating firm. Production and Operations Management, 11(1), 75–91.
Patton, M. Q. (2015). Qualitative research and evaluation methods: Integrating theory and practice. Thousand Oaks, CA: SAGE Publications.
Payne, J. W., Bettman, J. R., & Johnson, E. J. (1993). The adaptive decision maker. Cambridge University Press.
Pearson, C. M., & Clair, J. A. (1998). Reframing crisis management. Academy of Management Review, 23(1), 59–76.
Peterson, T. O., & Van Fleet, D. D. (2008). A tale of two situations: An empirical study of behavior by not-for-profit managerial leaders. Public Performance and Management Review, 31(4), 503–516.
Pillai, R., & Meindl, J. R. (1998). Context and charisma: A “meso” level examination of the relationship of organic structure, collectivism, and crisis to charismatic leadership. Journal of Management, 24(5), 643–671.
Poole, M. S., & Van de Ven, A. H. (1989). Using paradox to build management and organization theories. Academy of Management Review, 14(4), 562–578.
Prokesh, S. (1986). Man in the News; A Leader in Crisis: James E Burke. The New York Times, 2(19), B6.
Quarantelli, E. L. (1997). Ten criteria for evaluating the management of community disasters. Disasters, 21(1), 39–56.
Richey, R. G., Tokman, M., & Wheeler, A. R. (2006). A supply chain manager selection methodology: Empirical test and suggested application. Journal of Business Logistics, 27(2), 163–190.
Roberts, N. C., & Bradley, R. T. (1988). Limits of charisma. In J. A. Conger & R. N. Kanungo (Eds.), Charismatic leadership: The elusive factor in organizational effectiveness. San Francisco: Jossey-Bass.
Sarros, J. C., & Santora, J. C. (2001). The transformational-transactional leadership model in practice. Leadership and Organization Development Journal, 22(8), 383–394.
Schoenherr, T., Modi, S. B., Benton, W. C., Carter, C. R., Choi, T. Y., Larson, P. D., et al. (2012). Research opportunities in purchasing and supply management. International Journal of Production Research, 50(16), 4556–4579.
Seeger, M. W., Sellnow T. L., & Ulmer, R. R. (2003). Communication and organizational crisis. Greenwood Publishing Group.
Shaheen, I., Azadegan, A., Lucianetti, L., & Qi, L. (2017). Leading organizations through supply chain disruptions: An exploratory study of necessary traits. Rutgers Business Review.
Shaheen, I., Azadegan, A., & Davis, D. (2018). After the triggering event: A phasic perspective on leadership during supply chain disruptions. In Academy of management proceedings forthcoming.
Shaw, R., & Goda, K. (2004). From disaster to sustainable civil society: The Kobe experience. Disasters, 28(1), 16–40.
Sheffi, Y. (2015). The power of resilience: How the best companies manage the unexpected. New York: MIT Press.
Sheffi, Y., & Rice, J. B., Jr. (2005). A supply chain view of the resilient enterprise. MIT Sloan management review, 47(1), 41.
Shenkman, R. (2000). Presidential ambition: Gaining power at any cost. Harper Collins.
Shou, Y., & Wang, W. (2017). Multidimensional competences of supply chain managers: An empirical study. Enterprise Information Systems, 11(1), 58–74.
Simchi-Levi, D., Schmidt, W., & Wei, Y. (2014). From superstorms to factory fires: Managing unpredictable supply-chain disruptions. Harvard Business Review.
Simpson, P. F., French, R., & Harvey, C. E. (2002). Leadership and negative capability. Human Relations, 55(10), 1209–1226.
Soergel, A. (2016). Economy still reeling from west coast slowdown. US News and World Report.
Sokolov, B., Ivanov, D., Dolgui, A., & Pavlov, A. (2016). Structural quantification of the ripple effect in the supply chain. International Journal of Production Research, 54(1), 152–169.
Spekman, R. E., Kamauff, J. W., Jr., & Myhr, N. (1998). An empirical investigation into supply chain management: A perspective on partnerships. Supply Chain Management: An International Journal, 3(2), 53–67.
Stamatis, D. H. (2003). Failure mode and effect analysis: FMEA from theory to execution. Milwaukee, WI: American Society for Quality Press.
Stank, T., Crum, M., & Arango, M. (1999). Benefits of interfirm coordination in food industry supply chains. Journal of Business Logistics, 20(2), 21.
Staw, B. M., Sandelands, L. E., & Dutton J. E. (1981) Threat rigidity effects in organizational behavior: A multilevel analysis. Administrative Science Quarterly 501–524.
Stern, E. (2013). Preparing: The sixth task of crisis leadership. Journal of Leadership Studies, 7(3), 51–56.
Strange, J. M., & Mumford, M. D. (2002). The origins of vision: Charismatic versus ideological leadership. The Leadership Quarterly, 13(4), 343–377.
Sundnes, K. O., & Birnbaum, M. L. (2003). Health disaster management: Guidelines for evaluation and research in the Utstein style. Prehospital and Disaster Medicine 17 (Supplement 3).
Svensson, G. (2000). A conceptual framework for the analysis of vulnerability in supply chains. International Journal of Physical Distribution and Logistics Management, 30(9), 731–750.
Tatham, P., & Kovács, G. (2010). The application of “swift trust” to humanitarian logistics. International Journal of Production Economics, 126(1), 35–45.
Thornton, L. M., Esper, T. L., & Autry, C. W. (2016). Leader or lobbyist? How organizational politics and top supply chain manager political skill impacts supply chain orientation and internal integration. Journal of Supply Chain Management, 52(4), 42–62.
Tukiainen, S., Aaltonen, K., & Murtonen, M. (2010). Coping with an unexpected event: Project managers’ contrasting sensemaking in a stakeholder conflict in China. International Journal of Managing Projects in Business, 3(3), 526–543.
Van Hoek, R. I., Chatham, R., & Wilding, R. (2002). Managers in supply chain management, the critical dimension. Supply Chain Management: An International Journal, 7(3), 119–125.
Van Vugt, M., Jepson, S. F., Hart, C. M., & Cremer, D. De. (2004). Autocratic leadership in social dilemmas: A threat to group stability. Journal of Experimental Social Psychology, 40(1), 1–13.
Van Wart, M., & Kapucu, N. (2011). Crisis management competencies: The case of emergency managers in the USA. Public Management Review, 13(4), 489–511.
Van Wassenhove, L. N. (2006). Humanitarian aid logistics: Supply chain management in high gear. Journal of the Operational Research Society, 57(5), 475–489.
Wagner, S. M., & Bode, C. (2006). An empirical investigation into supply chain vulnerability. Journal of Purchasing and Supply Management, 12(6), 301–312.
Wagner, S. M., & Kemmerling, R. (2015). Supply chain management executives in corporate upper echelons. Journal of Purchasing and Supply Management, 20(3), 156–166.
Wales, W. J., Patel, P. C., Parida, V., & Kreiser, P. M. (2013). Nonlinear effects of entrepreneurial orientation on small firm performance: The moderating role of resource orchestration capabilities. Strategic Entrepreneurship Journal, 7(2), 93–121.
Wieland, A., Handfield, R. B., & Durach, C. F. (2016). Mapping the landscape of future research themes in supply chain management. Journal of Business Logistics, 37(3), 205–212.
Williams, L. R., Esper, T. L., & Ozment, J. (2002). The electronic supply chain: Its impact on the current and future structure of strategic alliances, partnerships and logistics leadership. International Journal of Physical Distribution and Logistics Management, 32(8), 703–719.
Wilson, K., & Barbat, V. (2015). The supply chain manager as political-entrepreneur? Industrial Marketing Management, 49(8), 67–79.
Yang, B., & Xie, M. (2000). A study of operational and testing reliability in software reliability analysis. Reliability Engineering and System Safety, 70(3), 323–329.
Youn, S., Yang, M. G. M., & Hong, P. (2012). Integrative leadership for effective supply chain implementation: An empirical study of Korean firms. International Journal of Production Economics, 139(1), 237–246.
Yukl, G. (2005). Leadership in organizations. United Kingdom: Pearson/Prentice Hall.
Yukl, G., & Mahsud, R. (2010). Why flexible and adaptive leadership is essential. Consulting Psychology Journal: Practice and Research, 62(2), 81.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 Springer Nature Switzerland AG
About this chapter
Cite this chapter
Shaheen, I., Azadegan, A., Hooker, R., Lucianetti, L. (2019). Leadership For Mitigating Ripple Effects in Supply Chain Disruptions: A Paradoxical Role. In: Ivanov, D., Dolgui, A., Sokolov, B. (eds) Handbook of Ripple Effects in the Supply Chain. International Series in Operations Research & Management Science, vol 276. Springer, Cham. https://doi.org/10.1007/978-3-030-14302-2_5
Download citation
DOI: https://doi.org/10.1007/978-3-030-14302-2_5
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-14301-5
Online ISBN: 978-3-030-14302-2
eBook Packages: Business and ManagementBusiness and Management (R0)