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Causes and Effects of Supply Chain Disruptions

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Causes and Effects of Supply Chain Disruptions Causes and Effects of Supply Chain Disruptions Inaugural Dissertation for Obtainment of the Degree Doctor rerum politicarum (DR. RER. POL.) Submitted to: Wissenschaftliche Hochschule für Unternehmensführung (WHU) – Otto-Beisheim-Hochschule – By: Christoph Bode Grubachweg 9a, 88131 Lindau Referee: Prof. Dr. Stephan M. Wagner Chair of Logistics Management Department of Management, Technology, and Economics Swiss Federal Institute of Technology Zurich Co-Referee: Prof. Dr. Lutz Kaufmann Chair of International Business & Supply Management WHU – Otto Beisheim School of Management Vallendar, August 2008 Acknowledgements The successful completion of this dissertation required support from many people. Foremost, I wish to express my deep gratitude to my academic advisor Prof. Dr. Stephan M. Wagner for giving me the possibility to work in the excellent and stimulating academic environment of his team at WHU. His continuous support, guidance, and encouragement were invaluable for my doctoral studies. I also appreciate the effort of Prof. Dr. Lutz Kaufmann for serving as secondary advisor and for his insightful comments and suggestions. I would like to thank Prof. Dr. Lisa M. Ellram and Prof. Dr. Kenneth J. Petersen for inviting me to Colorado State University and for providing excellent advice, particularly on Chapter 4 of the dissertation. I owe a great debt of gratitude to the Konrad-Adenauer Foundation (KAS) who graciously provided me with a doctoral scholarship. Special thanks go to my roommate Dr. Eckhard Lindemann, not only for the many valuable discussions, but, particularly, for the great time during the last years. Likewise, I want to thank Pan Theo Große-Ruyken, René Kemmerling, Dr. Philipp Koziol, Christian Rau, Dr. Christian Rink, and Gerald Schönbucher, for providing much needed humor that only colleagues participating in the same endeavor can provide. Special thanks are directed to Ulrike Cappel who was the “kind angel” at the Chair of Logistics Management. I would also like to thank the team of the Kuehne Center for Logistics Management at WHU, Martina Bender, Christian Busse, Peter Lukassen, Matthias Mahlendorf, and Dr. Carl Marcus Wallenburg, for the fun during the many extracurricular activities. ii On a personal note, a deep thank you is devoted to my girlfriend Christin who has brightened my life. I am also thankful for her excellent suggestions and feedback on the dissertation. Finally, and most importantly, none of this would have been possible without my sister Kathrin and my parents Gisela and Rainer. My parents, to whom this dissertation is dedicated to, have been a constant source of love, concern, support, and strength during all my life. iii Contents List of Figures ................................................................................................................... viii List of Tables ....................................................................................................................... ix List of Abbreviations ........................................................................................................... x Chapter 1 Introduction and overview of the research .................................................. 1 1 Introduction .................................................................................................................. 1 2 Literature review and development of a nomenclature ................................................ 5 2.1 Supply chain risk ................................................................................................ 6 2.2 Supply chain disruptions .................................................................................... 8 2.3 Supply chain risk sources ................................................................................. 10 2.3.1 Demand side risk .................................................................................. 12 2.3.2 Supply side risk ..................................................................................... 13 2.3.3 Regulatory, legal, and bureaucratic risk ............................................... 14 2.3.4 Infrastructure risk .................................................................................. 15 2.3.5 Catastrophic risk ................................................................................... 16 2.4 Supply chain vulnerability ................................................................................ 17 2.5 Supply chain risk management ......................................................................... 19 2.5.1 Cause-oriented supply chain risk management .................................... 20 2.5.2 Effect-oriented supply chain risk management .................................... 22 3 Research questions ..................................................................................................... 24 3.1 Research Question I .......................................................................................... 25 3.2 Research Question II ........................................................................................ 26 3.3 Research Question III ....................................................................................... 27 4 Empirical basis ........................................................................................................... 29 4.1 Study 1 .............................................................................................................. 30 4.1.1 Data collection procedure ..................................................................... 30 iv 4.1.2 Sample characteristics ........................................................................... 31 4.1.3 Data examination .................................................................................. 33 4.2 Study 2 .............................................................................................................. 34 4.2.1 Data collection procedure ..................................................................... 34 4.2.2 Sample characteristics ........................................................................... 36 4.2.3 Data examination .................................................................................. 38 Chapter 2 Supply chain vulnerability, its drivers, and the relationship with supply chain risk ....................................................................................................... 40 1 Theoretical background and hypotheses .................................................................... 40 1.1 Normal accident theory .................................................................................... 40 1.2 Supply chain vulnerability drivers .................................................................... 42 1.2.1 Customer dependence and supplier dependence .................................. 44 1.2.2 Supplier concentration and single sourcing .......................................... 46 1.2.3 Global sourcing ..................................................................................... 47 1.3 Hypotheses ........................................................................................................ 48 2 Methodology .............................................................................................................. 49 2.1 Data and procedure ........................................................................................... 49 2.2 Measures ........................................................................................................... 49 3 Statistical analysis and results .................................................................................... 53 3.1 Measure assessment .......................................................................................... 53 3.2 Regression model estimation and hypotheses testing ....................................... 56 4 Discussion .................................................................................................................. 61 5 Managerial and research implications ........................................................................ 65 Chapter 3 The relationship between supply chain risk and supply chain performance .................................................................................................. 67 1 Theoretical background and hypotheses .................................................................... 67 1.1 Contingency perspective, strategic choice theory, and strategic fit.................. 67 1.2 Hypotheses ........................................................................................................ 69 2 Methodology .............................................................................................................. 71 2.1 Data and procedure ........................................................................................... 71 v 2.2 Measures ........................................................................................................... 71 3 Statistical analysis and results .................................................................................... 73 3.1 Measure assessment .......................................................................................... 73 3.2 Regression model estimation and hypotheses testing ....................................... 76 4 Discussion .................................................................................................................. 79 5 Managerial and research implications .......................................................................
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