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Exploring factors influencing supply chain performance: Role of supply chain resilience with mixed method approach empirical evidence from the Chinese healthcare Sector

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Article: 2287785 | Received 25 Jan 2022, Accepted 21 Nov 2023, Published online: 12 Dec 2023

Abstract

94% of Fortune 1000 firms experienced supply chain disruptions. The severe shortage of essential medical supplies caused by COVID-19 has severely hampered the healthcare supply chain (HCSC). This study explores the impact of supply chain resilience (SCR) on supply chain performance (SCP) and the impact of communication (COM), organization culture (OC), top management support (TMS), and product complexity (PC) on SCR. The establishment of a theoretical framework is the goal of this study. This paper adopts mixed research methodologies: the qualitative method using semi-structured interviews and NVivo data analysis, and the quantitative method based on self-administered questionnaires and SmartPLS analysis. The study investigated SCR in the Chinese healthcare industry from the perspective of CAS (complex adaptive systems). 32 Tier-4 healthcare organizations from China took part in the interviews. 162 businesses filled out questionnaires to gather data from Chinese healthcare suppliers or manufacturers. The results suggested that SCR positively impacts SCP, and COM, OC, and PC positively impact SCR, but empirical evidence for the significance of TMS on SCR is still lacking. Top management in China’s healthcare sector still needs to improve SCR management, especially by incorporating digital technology into the direction of the company’s supply chain, including supply chain innovation brought about by new technology and big data analysis. This study can be expanded to include Chinese healthcare. In response to supply chain disruptions, this effort will improve SCR.

1. Introduction

1.1. Background of the study

Adversities that interrupt logistics and supply chain operations and imperil supply chain efficiency and effectiveness are faced by logistics systems and supply chains in today’s more dynamic and turbulent environment (Can Saglam et al., Citation2022; Choi, Citation2021; Hosseini et al., Citation2019). 94% of Fortune 1000 firms faced supply chain disruption (Ivanov, Citation2020b; Linton & Vakil, Citation2020; Sherman, Citation2020; Suryawanshi & Dutta, Citation2022). Global logistics movements are also affected (Linton & Vakil, Citation2020). COVID-19 has impacted global supply chains, underscoring the need to create a more resilient supply chain (Ivanov, Citation2020b; Zhu et al., Citation2020). The COVID-19 outbreak has caused a severe shortage of essential medical supplies, posing a significant challenge to the healthcare supply chain. (HCSC) (Spieske et al., Citation2022). Previously published studies addressed agility, responsiveness, supply chain risk management, vulnerability, assessment, and resilience (Hendry et al., Citation2019; Norrman & Wieland, Citation2019). With inadequate knowledge of the increased threats posed by COVID-19, a “return to normal” might not be possible.

Business executives and academics increasingly recognize the value of improving supply chain resilience (SCR) to mitigate disruptions and reduce vulnerabilities in the supply chain (Ivanov, Citation2018; Ivanov & Das, Citation2020; Jüttner & Maklan, Citation2011; Li et al., Citation2022; Naghshineh & Carvalho, Citation2022; Queiroz et al., Citation2022; Zhao et al., Citation2023). Many scholars suggest that SCR is the primary motivating factor for supply chain performance (Bahrami et al., Citation2022; Gu et al., Citation2021; Zhao et al., Citation2023). Therefore, exploring SCR’s enablers and barriers is urgently necessary. Enterprises need to understand the main enabling factors of SCR and use them to generate resilience. Enterprises also need to understand the main barriers to SCR, referring to the forces that negatively impact SCR, to reduce the negative impact of barriers to providing SCR (Ali & Gölgeci, Citation2019; Blackhurst et al., Citation2011). In constantly changing contexts, the ability to sense the need to reconfigure an organization’s asset structure and to carry out the necessary internal and external transformation is valuable (Amit & Schoemaker, Citation1993; Langlois, Citation1994; Teece et al., Citation1997). In this context, this study investigated the impact of SCR on SCP and the impact of drivers (communication, organization culture, and top management support) and barriers (product complexity) on SCR. Even though many strategies improve resilience, only a few authors have mentioned how important COM is (Hosseini et al., Citation2019; Suryawanshi & Dutta, Citation2022). The demand for COM and joint knowledge creation is a critical variable in supply chain collaboration that was previously ignored (Cao & Zhang, Citation2011; Zhang & Cao, Citation2018). OC was a key consideration when creating a supply chain strategy (Altay et al., Citation2018; Khazanchi et al., Citation2007; Liu et al., Citation2010). OC has moderating and indirect effects on SCR (Altay et al., Citation2018; Mandal, Citation2020). However, the direct effects of OC on SCR remain to be studied. Top management support (TMS) is vital in ensuring SCR (Ali & Gölgeci, Citation2019). Recent case studies have shown that during the period of COVID-19, TMS is one of the most critical issues to be solved for sustainability and SCR (Kazancoglu et al., Citation2022). The current literature places minimal emphasis on the significance of TMS in improving SCR (Mandal, Citation2020). Scholars have called on researchers to focus on further research on barriers that may hinder companies from building SCR capabilities to supplement existing research gaps (Ali & Gölgeci, Citation2019). PC may hinder the establishment of SCR, but only some researchers have paid attention to it (Ali & Gölgeci, Citation2019). Showing the importance of excellent survey-based research, especially mixed-methods research (Ali & Gölgeci, Citation2019).

Although supply chain disruptions have been studied for the past 10 years, only some studies have addressed the healthcare sector (Singh & Parida, Citation2022). Figure displays the percentage of industries using resilience and supply chain risk management. The medical and pharmaceutical supply chain represents only 4% of the total. One of the most significant industries that the COVID-19 outbreak has severely impacted is the healthcare sector (Singh & Parida, Citation2022). China’s position as a global provider of personal protective equipment, medical devices, antibiotics, and active pharmaceutical components (Schwarzenberg & Sutherland, Citation2020)). China’s health industry’s scale will have reached around RMB 10 trillion (approx. US$1.5 trillion) in 2021 (Chinanews, Citation2022), making it the world’s second-largest. In the next five years, China will jointly promote the construction of public health, healthcare services, universal healthcare, and other health systems (The Central People’s Government of China, Citation2021). Driven by government support and changes in China’s population structure, this number is expected to grow in the coming decades. As COVID-19 demonstrated the weaknesses and advantages of China’s HCSC, improving and optimizing supply chain management will be a primary goal for the country and companies (China Medical Device Supply Chain Development Report, Citation2021). Therefore, It is critical to investigate the healthcare industry’s SCR in China.

Figure 1. Industry-wise application of SCR.

Source: Singh and Parida (Citation2022)
Figure 1. Industry-wise application of SCR.

Internal and external SCR are the two types (Zhou et al., Citation2022). Elements of external resilience are supplier and customer resilience. The current study examines SCR from the perspective of a single firm, focusing solely on the firm’s internal resilience (Gu et al., Citation2021). According to Sweeney et al. (Citation2018), logistics are a component of supply chain management for 87.8% of supply chain managers. Figure depicts this. Mandal (Citation2020) hopes that SCR research will incorporate customer feedback because SCR has customers and will be investigated. Due to their interdependence and complexity, global supply chain networks are more susceptible to risk and uncertainty. A disturbance at a supply chain node involving only a few firms might have a cascading impact and paralyze the supply chain (Nikookar & Yanadori, Citation2022; Zhao et al., Citation2023).

Figure 2. Relationship between supply chain management and logistics.

Source: Sweeney et al. (Citation2018)
Figure 2. Relationship between supply chain management and logistics.

According to complex adaptive systems (CAS) and complexity theory (Benjamin & Tukamuhabwaa Mark Stevensona, Citation2015; Brownlee, Citation2007), CAS is an extraordinarily complicated system with adaptive properties (Benjamin & Tukamuhabwaa Mark Stevensona, Citation2015; Brownlee, Citation2007; Surana et al., Citation2005). CAS can coexist in unstable and partially chaotic environments (Innes & Booher, Citation1999). The environments of SCR and CAS are very similar. According to Choi et al. (Citation2001), CAS adaptation entails multiple organizational networks adapting to internal and external changes. In this complicated adaptive context, SCR is a system-level phenomenon involving strong interconnection rather than discrete enterprise-level components that continuously adapt to the environment. The CAS theory provides such an accurate shot because the HCSC is complex. Individual component analyses cannot be sent to the entire system. So, to fill this gap, we studied the whole SCR of the Chinese healthcare sector, including the resilience of manufacturers and their partners in the HCSC.

COVID-19 has virtually brought economic activity to a standstill. The interruption is so severe that it has caused a significant gap in all operations and supply chain activities (Ivanov, Citation2020b). The supply chain faced unprecedented and extreme challenges due to COVID-19 (Ozdemir et al., Citation2022). Many businesses need to prepare for the issues of today, according to the literature (Esmizadeh & Mellat Parast, Citation2021). When a company fails to recognize any potential risks and vulnerabilities in its supply chain and put a mitigation strategy in place, it will threaten its survival (Cigdem & Nowicki, Citation2018).

This study explores the impact of SCR on SCP and the impact of COM, OC, TMS, and PC on SCR. The study aims to create a theoretical foundation for enhancing China’s healthcare industry’s SCR. It also successfully handled supply chain disruptions to boost China’s healthcare industry’s global competitiveness. Johnson & Johnson, a forerunner in the global healthcare industry, employed superior supply chain management to create a competitive edge for business expansion (The Gartner Supply Chain Top 25, 2022). As a result, we examined the following research questions:

RQ1:

How does SCR impact SCP?

RQ2:

How do COM, OC, TMC, and PC impact China’s healthcare SCR?

1.1.1. Research Objectives

RQ1:

To explore the impact of SCR on SCP

RQ2:

To explore the impact of COM, OC, TMS, and PC on China’s healthcare SCR

2. Literature review

2.1. Supply chain resilience: A dynamic capability(DCT)

According to Craighead et al. (Citation2007), supply chain disruptions are sporadic occurrences that halt or slow down regular material flows. In the context of COVID-19, disruptions and closures at various supply chain nodes could impact the chain’s effectiveness (Ivanov, Citation2020a). Decisions made by the logistics and supply chain in terms of strategy and operations will be impacted by disruption (Khurana et al., Citation2021). Collaboration across large and complex organizations is necessary for risk identification and mitigation (Ali & Gölgeci, Citation2019).

In a chaotic and uncertain environment, to mitigate the consequences of COVID-19 and recover from the current outbreak (Li et al., Citation2017; Yu et al., Citation2019), suggested that companies should increase their spending on risk response, preventive procedures, and supply chain flexibility (Can Saglam et al., Citation2022; Li et al., Citation2017; Yu et al., Citation2019). Recent research suggests that SCR has three main dimensions: preparedness, response, and recovery (Chowdhury & Quaddus, Citation2016; Chowdhury et al., Citation2021). A preparation plan is deemed adequate if it is proactive for future disruption readiness. Members of the supply chain who respond swiftly can lessen the impact. The supply chain can improve or revert to its original state with recovery (Chowdhury & Quaddus, Citation2016; Chowdhury et al., Citation2021; Ponomarov & Holcomb, Citation2009).

SCR is a dynamic capability (Brusset & Teller, Citation2017; Mandal, Citation2020; Pal et al., Citation2016; Ponomarov & Holcomb, Citation2009). Teece (Citation2007) states that dynamic capabilities are the ability to sense and shape opportunities and threats, capitalize on current opportunities, and keep competitive advantages by enhancing, combining, protecting, and rearranging the organization’s resources. This theory explains how enterprises react to their surroundings. In times of transition, dynamic capacities can develop and sustain their strengths (Teece, Citation2007). These capabilities are essential in unstable market contexts because they allow companies to deal with problems by reallocating resources to adjust to new, unstable, and uncertain circumstances in an organizational setting (Buccieri et al., Citation2020). The ability of an organization to survive in a chaotic environment is defined as resilience (Ates & Bititci, Citation2011; Chowdhury & Quaddus, Citation2018). In order to survive with resilience capabilities, firms’ supply chains must create dynamic skills to reduce vulnerabilities in an uncertain environment (Chowdhury & Quaddus, Citation2018). Helfat et al. (Citation2007) proposed that organizations have the ability to purposefully create, expand, and adjust their resource base based on emergency needs, and dynamic capabilities have been developed. In this context, COM, TMS, OC, and PC are critical capabilities that must be appropriately utilized to develop SCR. In addition, the effect of SCR on SCP is also discussed.

2.2. Supply chain performance (SCP)

According to Wamba et al. (Citation2020) and Rosenzweig et al. (Citation2003), SCP is crucial for all organizations. SCP is evaluated using resources (such as inventory, the cost of using various resources, and return on investment), output (such as customer satisfaction, sales volume, and profit), and flexibility (such as new product, supply, mix, and volume flexibility) (Beamon, Citation1999). The investigation of SCP while considering different risk dimensions (Stephan & Bode, Citation2008; Wamba et al., Citation2020) revealed that supply chain risks could negatively impact SCP.

2.3. Communication(com)

The creation, integration, and reconfiguration of internal and external resources and capabilities and the development of new capabilities are all studied in the Dynamic Capacity Theory (DCT) by Teece et al. (Citation1997). According to Barki and Pinsonneault (Citation2005), COM refers to how much information an organization shares with its supply chain partners via COM, information, and COM networks. Communicating is an essential interpersonal process that consists of a continuous cycle of initiating, maintaining, and terminating information exchanges (Can Saglam et al., Citation2022; Park et al., Citation2012). Rapid sharing of critical information regarding potential dangers is necessary (Dubey et al., Citation2018) so the supply chain does not break down. According to Asamoah et al. (Citation2020), COM facilitates supply chain integration, speeds up COM and information sharing, and increases the effectiveness of the supply chain. Building SCR will largely depend on COM (Suryawanshi & Dutta, Citation2022). Suryawanshi and Dutta (Citation2022) explain that COM is one of the best ways to keep the supply chain running smoothly and manage SCR. Better COM can result in improved information exchange, coordination, and response skills, which in turn help develop supply chain management capabilities.

2.4. Top management support (TMS)

Top management is a single person or group of people who can motivate company employees to fulfill the firm’s goals and vision (Mandal, Citation2020). TMS is a technique for making decisions that can resolve issues with the supply chain’s sustainability and enhance SCR (Kazancoglu et al., Citation2022; Olaleye et al., Citation2021). Gunasekaran et al. (Citation2011) undersigned that top management provides and improves the most important resources needed to find and deal with emergencies. Proper TMS improves the quality of information exchange and boosts staff engagement (Mandal, Citation2020; Wang & Noe, Citation2010).

2.5. Organization culture(OC)

OC is a set of shared values and ideas that assist employees in understanding how the business functions and provide instructions for how to conduct themselves in the workplace (Deshpande & Webster, Citation1989; Mandal, Citation2020). OC also symbolizes the organization’s norms and expectations of how employees should behave (Bahrami & Shokouhyar, Citation2021). Culture is the factor that makes the members of an organization stand out (Hofstede, Citation1980; Li & Wong, Citation2019). OC is founded on COM, ethics, accountability, and fairness. Staff training, information sharing, and collaborative and business continuity planning help businesses achieve resilience as well as deal with interruptions (Bahrami & Shokouhyar, Citation2021; Das & Lashkari, Citation2015; Domańska-Szaruga, Citation2020; Li & Wong, Citation2019).

2.6. Product complexity(PC)

PC stems from customers’ desire for personalized service and the company’s offerings’ high level of complexity and multiple selections (Chowdhury et al., Citation2019; Novak & Eppinger, Citation2001). Therefore, PC is reflected in providing customers with additional diversified components and personalized production options (Eckstein et al., Citation2015; Novak & Eppinger, Citation2001; Vachon & Klassen, Citation2002). Companies increase their products to gain market competitiveness. However, PC increases the likelihood of supply chain interruption (Donadoni et al., Citation2018). When it became clear that a product did not sell well and made little or no difference, it was taken off the market (Aitken et al., Citation2016). Firms should put processes in place to keep PC manageable.

3. Research methodology

By using various methods for different queries to expand the breadth or scope components of queries (Creswell, Citation2006), researchers can plan multiple basic research designs (Malhotra & Peterson, Citation2006). A practical social science research method verifies the quantitative and qualitative results of the triangulation method. Therefore, the study’s design uses an exploratory sequential mixed-methods approach.

Three or more businesses that are directly related constitute a supply chain. Customers may receive their goods, services, money, or information downward or upward (Robert et al., Citation2008). From CAS’s point of view, the SCR is not caused by actions taken by a single company in isolation. This indicates that we should consider the whole supply chain, not individual enterprises (Benjamin & Tukamuhabwaa Mark Stevensona, Citation2015). Brandon-Jones et al. (Citation2014) explain that for this to work, The focal firm must collaborate with its suppliers and clients to guarantee that the collaboration structure and processes are sound.

From the manufacturer to the patient, the HCSC oversees medical treatment and necessary medical services. The method must be more precise and cohesive (Saviano et al., Citation2014). Figure depicts the HCSC type. By the end of 2022, China had 32,632 Medical device manufacturers (China National Medical Products Administration, Citation2022).

Figure 3. Typical HCSC and the sequence of interviews.

Source: Authors’ Elaboration
Figure 3. Typical HCSC and the sequence of interviews.

4. Study 1: Qualitative

This study used purposive sampling. Purposive sampling is considered appropriate, and the purpose is to select rich samples for a detailed understanding of the research problem (Blomkvist & Hallin, Citation2015).

This study defines four dimensions: 1. A focal firm 2. The focal firm’s suppliers 3. The focal firm’s customers (distributor and hospital). 4. The logistics providers in the whole supply chain. The main participants in supply chain activities are suppliers (Suryawanshi & Dutta, Citation2022). So, the most essential component is the supplier.

Logistics-related activities are essential to SCR (Suryawanshi & Dutta, Citation2022). The comprehensive logistics capability of enterprises is related to the elastic characteristics of the supply chain, such as speed, flexibility, visibility, and supply chain collaboration (Mandal et al., Citation2016). Therefore, the sample also includes logistics suppliers in the whole supply chain. The data collection method of this study is to interview critical managers at each supply chain node. The interview stages were as follows: We interviewed the focal firm’s five managers and then interviewed the focal firm’s 19 suppliers and seven customers. Finally, we interviewed five logistics providers of the whole supply chain. Figure also shows the interview sequence.

The healthcare manufacturer was chosen based on the following standards:

  1. Make products of the healthcare industry

  2. It is a link in the global supply chain

  3. Willing to provide opportunities for cooperative enterprises to participate in this research

Saturation determines the sampling size for qualitative data, and the interview can have 20–30 participants (Creswell, Citation2012). We interviewed 32 firms in the 4-level HCSC. All interviews were structured. The respondents are summarized in Table . We interviewed five managers of the focal firm. Then, we interviewed 19 suppliers and 7 customers of the focal firm. Finally, we interviewed five logistics providers for the whole supply chain. We selected suppliers to cover different parts to get more information. All responses manage supply chain tasks, which is reflected in their positions. Their average working experience is 13.56 years, indicating they are well-versed in these questions (Zhao et al., Citation2011). (See Appendix 1. Interview protocol).

Table 1. Supply chain firm summary information

5. Interview data analysis

This study uses NVivo software to help analyze qualitative data, import answers to interview questions and code, and use query tests to find topics. When presenting the results, we bring the literature into the discussion at an appropriate point, enabling comparison of the research findings with the body of literature to provide a deeper and more extensive understanding (Blackhurst et al., Citation2011; Eisenhardt, Citation1989).

25/32 of firms point out that the supply chain disruption and supply chain risk are mainly caused by COVID-19, as shown in Figure . For example, the global epidemic has disrupted transportation and caused a significant reduction in supplier production capacity, a shortage of raw materials, and the extension of the lead time of the order. We further found that the supplier’s supply chain management ability and adaptability, as well as the manufacturer’s poor COM with suppliers and customers, will also lead to the interruption of the supply chain of the focus company.

Figure 4. Causes of supply chain disruption and supply chain risk.

Figure 4. Causes of supply chain disruption and supply chain risk.

Figure shows the COM mind map for the COM topic coding. COM includes internal COM and external COM.

Figure 5. Mind map of COM.

Source: Authors’ data analysis by NVIVO
Figure 5. Mind map of COM.

Internal COM: The purchasing staff feedback on the supply-demand change information and raw material delivery information to the production planning colleagues, who will adjust the production plan according to the information. Supply chain members report supply chain risks and disruptions to management and top management according to emergencies. Formulate or initiate emergency plans to solve the disruptions.

External COM: Supply chain members to obtain supply information on time, including delivery delays, shortages of raw materials, and possible interruptions. Maintaining timely COM and information sharing with suppliers, logistics providers, and customers is necessary. It is also necessary to seek policy support, especially during COVID-19.

Most respondents replied that they communicated through multiple channels, such as face-to-face, e-mail, internal COM tools, meeting reports, information systems, telephone reports, and instant messaging. Establishing formal and informal COM channels improves enterprises’ internal and external information processing capabilities, helps promote supply chain flexibility, and reduces supply chain disruption (Tenhiälä & Salvador, Citation2014). Information systems of some companies, such as ERP systems (enterprise resource planning), SRM (supplier relationship management), and logistics tracking systems. These systems can warn about safety stocks, raw material shortages, and logistics information. Businesses encourage information sharing through COM with supply chain partners.

Purchasing managers and logistics managers at the focus firm of examples of COM to improve SCR, as follows:

In 2022, a core component manufactured in Japan was affected by a shortage of raw materials, and the delivery date was suddenly extended from two months to six months. We reported the problem to the company’s management and looked for products from other suppliers as substitutes. The management urgently arranged for R&D personnel to prioritize verifying the substitution products. Finally, we obtained the approval of the customer and resolved the disruption.

In 2020, Wuhan faced a severe shortage of medical supplies in the face of a sudden epidemic. The government gives priority to the production and transportation of medical products. For manufacturers and businesses, the most important thing is to send the equipment they produce to each hospital as soon as possible. We urgently introduced new logistics suppliers who also gave priority to medical devices. We keep close communication with them and share logistics information. Finally, we solved the problem of supply chain disruption together.

The procurement manager of a multinational company said that they could still produce products during the epidemic because they kept close COM with local government agencies:

In 2022, when there was an epidemic in Shanghai, our factory became one of the first vital enterprises to start making products again with the government’s support. We insisted on small-scale production with closed-loop management to meet customers’ urgent needs.

6. Experience shows that COM positively affects SCR

6.1. During COVID-19, the managers of the focal firm talked about how OC affects SCR

It was the Chinese New Year holiday in December 2020 at the beginning of the epidemic. All products in stock were shipped out in two days; we had zero stock, and there were many more orders. Faced with two major problems—a lack of personnel and materials—the company gathered all the employees who could return to the company. Employees actively provide different solutions and work overtime at this most critical time. Even technicians go to the production line to work. These efforts are of great help to the completion of customer deliveries.

Our production department, production planning department, and purchasing department will share information about the arrival of raw materials almost daily. In case of a material shortage, R&D personnel, and testing personnel shall be ready to verify alternative materials at any time. The salesperson promptly communicated with the customer about the change of delivery date. The human resources department quickly hired people to meet the substantial increase in production capacity. Everyone is ready to accept any changes that are coming. Therefore, we can meet the urgent and short-term needs of customers. Staff efforts have rapidly improved our company’s supply chain recovery capability.

25/29 Managers replied that they could share potential disruption and risk information quickly. Managers described it as “within three days, two days, or the same day. 10/29 Managers realized the importance of training members on supply chain risk. The employees get training on resilient policies to recognize the risk of interruptions and work together more effectively (Christopher & Peck, Citation2004; Li & Wong, Citation2019).

Most managers know they need to help their employees find supply chain risks ahead of time, keep an eye on and encourage execution, and build a culture of SCR in their organization (Li & Wong, Citation2019; Obayi et al., Citation2017; Ponomarov & Holcomb, Citation2009). Indicate that businesses can handle high-risk situations, serve customers well, and run efficiently with the least downtime.

7. Experience shows that OC is important for SCR

20/32 managers answered that the support of top managers was essential to making the supply chain resilient. Figure shows the keywords related to TMS. This indicates that the TMS is required to provide help in terms of resources, human resources, and financial support. For example, top management could help solve customer problems by coordinating the staff’s work in the R&D, finance, and customer service departments. Businesses can also make their supply chain more resilient by preparing inventory or telling suppliers or customers to prepare inventory ahead of time. This requires enterprise capital allocation, so top management must support it. Respondents also stated that the higher the priority top management places on building SCR, the easier it will be to make it.

Figure 6. Keywords related to TMS.

Source: Authors’ data analysis by NVIVO
Figure 6. Keywords related to TMS.

A supply chain director talked about the role of top managers in building SCR. He came from a supplier of the focal firm.

During the Shanghai epidemic, our company’s top management set up an anti-epidemic material allocation team, which was responsible for picking up and transferring goods and connecting transportation and distribution. Hundreds of employees were on 24-hour shifts to ensure timely delivery to Shanghai. This plays a very critical role in building SCR.

8. Experience shows that TMS positively affects SCR

According to the respondent’s answers, PC(Product complexity) is caused by many factors, including the customer’s demand for product customization, the sales staff’s suggestions on product selection, the late involvement of supply chain management in product design, which leads to too many components, the company’s use of multiple substitutes to reduce costs, industry certification requirements (such as in the healthcare industry), and product attributes. Small batches and multiple varieties are characteristics of healthcare products. When products become more complex, the greater the possibility of supply chain interruption, the lower the elasticity of the supply chain.

PC is not only an R&D and marketing problem but also needs the joint efforts of supply chain members. The company shall identify the rationality of customer demand internally. Then, manage the sales staff during the process and ask them to recommend that customers choose standard products. Standard products’ delivery dates and prices are better than customized products. Finally, early product design participation from supply chain participants is necessary; integrate the integration of product components, use the total cost priority strategy, find out which parts are better made by suppliers, and try to outsource non-core components for which suppliers have production advantages. (See Figure )

Figure 7. The ways to reduce PC and influencing factors of PC.

Source: Authors’ data analysis
Figure 7. The ways to reduce PC and influencing factors of PC.

Most managers (20/32) said that the best way to solve the interruption problem was to provide customers with standard products as a substitute. A supply chain manager said:

Most of the time, we do not have a stock of customized products, and we only buy raw materials and make products when we receive customer orders. As a result, when supply is limited, we prioritize producing standard products before producing customized products.

8.1. The focus firm’s material manager also discussed how PC influences SCR

During the epidemic period in 2020, our monthly output doubled several times. However, we solved many supply chain problems. The key is reducing product complexity, including product customization services, product appearance, and multi-color and multi-language requirements. At the same time, we also optimized the process and reduced the number of parts.

9. From experience, we know that reducing PC can reduce supply chain disruption and improve SCR

We query and analyze the SCP theme. Table shows the information for four supply chain levels. Figure shows the keywords of the SCP. All items include customer delivery, patient treatment, the organization’s cost, and enterprise or hospital operations, such as a manufacturer’s production capacity, R&D progress, product life, the performance of sales contracts, and sales. We also discovered that SCR can improve a firm’s reputation and profitability. We also discover that SCR impacts customer satisfaction and after-sales service effectiveness.

Figure 8. Keywords of the SCP.

Source: Authors’ data analysis by NVIVO
Figure 8. Keywords of the SCP.

Table 2. The code of the impact of SCR on SCP

9.1. Experience shows that SCR affects SCP

According to CAS theory, a company’s SCR is defined by its network’s resilience (Benjamin & Tukamuhabwaa Mark Stevensona, Citation2015; Sheffi & Rice, Citation2005; Wedawatta et al., Citation2010). Scholars suggest using qualitative and longitudinal research on SCR (Benjamin & Tukamuhabwaa Mark Stevensona, Citation2015).

Existing research through qualitative analysis shows that communication (COM), organization culture (OC), top management support (TMS), and product complexity (PC) positively affect supply chain resilience (SCR), and SCR positively affects supply chain performance (SCP).

10. Study 2: Quantitative method

10.1. Hypothesis

10.1.1. Communication and supply chain resilience (COM and SCR)

Due to miscommunication, supply chain managers cannot communicate risk information (Can Saglam et al., Citation2020, Citation2022). Zhang and Cao (Citation2018) explain that COM makes it easier for partners in the supply chain to work together and solve problems. When the supply chain is interrupted, the partner’s COM mode, which needs to be set up ahead of time, can be shared at the right time to avoid confusion (Blackhurst et al., Citation2011). The results of Hosseini et al. (Citation2019) and Reyes Levalle and Nof (Citation2015) show that COM within supply chain networks can significantly impact the quality of service during disruption and enhance it during regular business operations. Zhang and Cao (Citation2018) indicate that COM includes two-way flow’s degree, frequency, and informal and indirect COM. Multi-channel COM and the latest COM tools can promote supply chain operations (Yamin, Citation2021).

We claim that strengthening internal and external COM in the supply chain can obtain and share information about demand, risk, and interruption. It can better cope with upstream and downstream changes. Active COM with the government can help get production back up and running more quickly and safely, especially during the pandemic. With the help of an advanced ERP, SRM, logistics tracking system, and other information systems, the company can find shortages of raw materials and abnormal logistics information in time. Strengthen informational COM and coordination between manufacturers, suppliers, and customers, which can improve the SCR.

Recent research shows that COM strategies can promote the recovery of supply chain capabilities (Cigdem & Nowicki, Citation2018). COM makes the supply chain more resilient (Asamoah et al., Citation2020; Yamin, Citation2021). Accordingly, good COM could detect supply chain risks, promptly initiate risk management, and improve SCR. Thus, we hypothesize the following:

H1:

COM positively impacts SCR

10.1.2. Organization Culture and supply chain resilience (OC and SCR)

OC is related to the ordinary meaning of the organization in the interaction between employees (Dubey et al., Citation2017; Gregory, Citation1983). The OC affects how employees perceive, behave, and react to process improvement initiatives (Lee et al., Citation2016; Passos et al., Citation2012). OC is one aspect of supply chain capability (Cigdem & Nowicki, Citation2018). Organize the development of supply chain risk management and the updating and implementation of different business standards to make the business culture more used to formality. Therefore, enterprise culture enables the development of supply chain risk management (Norrman & Wieland, Citation2019).

We found that members could solve the problem of supply chain interruptions faster and better if they actively proposed solutions and worked on them. Members share information on time, pay attention to customers’ needs, and are ready to work together in response to the changes that will occur. It is essential to improve SCR. We also found that training members on supply chain risk and resilience policies are necessary to stabilize and sustain SCR.

Dubey et al. (Citation2017) and Liu et al. (Citation2010) found that culture is essential to supply chain management practices and system adoption. Mandal (Citation2020) found that OC indirectly and significantly impacts SCR. Therefore, an excellent organizational culture may be a powerful driving force for SCR. Hence, we hypothesize that:

H2:

OC positively impacts SCR

10.1.3. Top management support and supply chain resilience (TMS and SCR)

Top management will motivate employees, take the initiative, and ensure that resources are fully utilized (Yamin, Citation2020). Top management needs to back up the supply chain by giving enough support for sharing information efficiently and effectively using IT technologies (Mandal, Citation2020).

We claim that TMS is essential for SCR. It is mainly reflected in resource allocation (human and financial resources). When the supply chain is interrupted or likely to be interrupted, top management can improve critical resources to solve problems with suppliers more quickly. Also, top management has a big say in how teams are put together and their goals. Top management organized the team to work together to deal with the interruption and reduce the supply risk. We also discovered that the TMS for SCR is proportional to SCR.

Mandal (Citation2020) found that TMS positively impacts SCR. The study contends that TMS will enhance SCR by boosting employee and partner morale and improving IT infrastructure to promote information sharing. Therefore, we hypothesize that:

H3:

TMS positively impacts SCR

10.1.4. Product complexity and supply chain resilience(PC and SCR)

PC reflects the complexity of the portfolio and the product (Eckstein et al., Citation2015; Jacobs, Citation2013). It could be seen as internal complexity that grows within the focus company (Eckstein et al., Citation2015).

We found six factors that affect PC. It includes customer needs, sales guidance, lowering costs, industry certification requirements, supply chain not participating in product research and development early, and product attributes. In the disruption of the supply chain, standard products are the best medicine to solve the disruption of customized products. We also found that the reduction of PC will improve SCR.

PC increases supply chain disruption likelihood (Donadoni et al., Citation2018; Inman & Blumenfeld, Citation2014). Bozarth et al. (Citation2009) and Donadoni et al. (Citation2018) agree that a product’s complexity complicates the supply chain. The complexity of the supply chain has increased its vulnerability (Chowdhury et al., Citation2019; Craighead et al., Citation2007). Blackhurst et al. (Citation2011) determined from a multi-industry empirical study that PC is negatively related to SCR. A product’s complexity may directly negatively affect SCR. Resources in the current supply chains may be less likely to be shared across goods due to the numerous product variations and components that can result in various organizational needs for manufacturing, quality control, and information management. Therefore, this gives us the following hypothesis:

H4:

PC positively impacts SCR. The lower the PC, the more resilient the supply chain.

10.1.5. Supply chain resilience and supply chain performance(SCR and SCP)

SCP assesses the extent to which the complete supply chain is timely supplied to the final consumer (Gu et al., Citation2021; Huo et al., Citation2014; Tarafdar & Qrunfleh, Citation2017). Some other kinds of literature state that the two performance indicators used most often were related to costs. Operating expenses and inventory costs are two examples of cost measurement. Indicators to measure customer response include lead time, quality, the probability of being out of stock, and fill rate (Beamon, Citation1999; Chowdhury et al., Citation2019; Lima-Junior & Carpinetti, Citation2017).

Based on our analysis of the data from the HCSC’s four levels, we found that the supply chain’s resilience also improved these performance indicators. We also found that SCR affects the company’s reputation, profitability, after-sales service efficiency, and customer satisfaction.

SCR is a crucial SCP enabler since it helps avoid disruptive events and create and sustain acceptable performance levels (Chowdhury et al., Citation2019; Jüttner & Maklan, Citation2011). Recent research found that SCR positively impacts SCP (Chowdhury & Quaddus, Citation2018). As a result of operational problems, shipment delays, and decreased customer satisfaction, disruptions to supply chains can considerably lower shareholder value. So, it is essential to develop SCR to prevent economic loss and guarantee SCP. Therefore, this brings us to the following set of hypotheses:

H5:

SCR positively impacts SCP

According to Teece (Citation2007), DC can be categorized as sensing, seizing, and reconfiguring (or transforming). Communication with supply chain partners can timely identify potential disruptions and risks in the supply chain, and communication is the most effective way for enterprises to sense threats. The provision of resources by top management can reconfigure resources to increase SCR. Establishing OC and controlling PC as enterprise decisions can reduce threats to the enterprise and improve SCR capabilities. According to the research hypotheses, including previous literature and qualitative research findings of the authors, Figure depicts the construction of the SCR theoretical framework.

Figure 9. Theoretical framework of SCR.

Figure 9. Theoretical framework of SCR.

11. Quantitative data

The goal of quantitative research is to get a larger sample size to test the results of qualitative research. Simple random sampling is adopted. The questionnaire was completed online. The questionnaire is adapted from previous studies (see Appendix 2. Overview of measurement instruments). Table shows the list. On a five-point Likert scale, one means “very disagree,” and five means “very agree.” Send the contact person the cover letter, a description of the survey’s goals, a glossary of keywords, and a link to the online survey. After sending, follow up by completing the questionnaire by phone or online.

Table 3. The questionnaire was adapted from the following authors

Effective SC management starts with supplier management. Any delay or mistake on the part of a provider has a significant chance of messing up the whole chain. Also, to deal with uncertainties in the environment or market, the supply chain as a whole must be able to provide a positive reaction through good planning and keep running during a disruption (Mandal, Citation2020). In the data collection stage, 260 contacts were obtained. All of whom were healthcare manufacturers and their raw material suppliers in China. 162 companies received replies, with a response rate of 62.31%. Hair et al. (2013) suggest that at least 124 people should be in the sample. This study tries to ensure that the professionals involved have the experience standards of “supply chain manager,” “purchasing manager,” “R&D manager,” “sales manager,” and other job titles. Table shows the designation profile.

Table 4. Designation profile

12. Path modeling and hypotheses testing

SmartPLS was used in the study to assess the validity and reliability of the constructs. All the constructs had alphas of at least 0.70 and composite reliability of at least 0.80, which was deemed satisfactory (Fornell & Larcker, Citation1981). Furthermore, with constructs reporting AVE > 0.50, confirming the convergence validity is satisfactory (Flynn et al., Citation2010). See Table . Table shows that the constructs are significantly associated with their respective indicators when compared to the Model’s other constructs (Chin, Citation1998; Fornell & Larcker, Citation1981). As a result, discriminant validity was effectively attained.

Table 5. Construct reliability and validity

Table 6. Discriminant validity (Fornell-Larcker criterion)

The study assessed the path values and their associated significance (t-statistics) using PLS. Table lists the findings of the hypothesis testing. Figure shows the outer model assessment. Consequentially, under the standards of Chin (Citation1998), the proposed Model demonstrated a significant potential for prediction. Figures show that the total effects scores and index values are reflected. It reflects that COM, OC, and PC positively impact SCR. SCR has a positive impact on SCP. It agrees with the findings of qualitative research. However, TMS for SCR is not supported by experience.

Figure 10. Outer model assessment.

Figure 10. Outer model assessment.

Figure 11. Inner model assessment.

Figure 11. Inner model assessment.

Figure 12. Importance-performance map analysis (IPMA).

Figure 12. Importance-performance map analysis (IPMA).

Table 7. Path coefficients mean, STDEV, T-Values, P-Values

13. Conclusion and discussion

This paper intends to investigate the impact of SCR on SCP and the impact of COM, OC, TMS, and PC on SCR to reduce the effect of supply chain disruption. This research proposes to develop a theoretical framework.

Based on the theory of CAS, we studied the resilience of multi-level supply chains in the healthcare sector. Based on DCT, under the COVID-19 epidemic, enterprises accelerated response through COM, reconfigured internal and external resources and capabilities, and improved SCR to effectively deal with supply chain disruption, paying attention to developing OC, reducing PC, and establishing SCR. Dynamic capabilities such as resilience require organizations to create them purposefully. According to emergency needs, the organization’s top management has the ability to adjust its resources, including improving the organization’s COM capabilities and controlling PC. Since an organization’s success depends on its resources and ability to create or strengthen organization SCR, this improves performance gains. Organizations react to risks and disruptions in the supply chain by combining several strategies.

This study enriches the CAS and DCT theories for enhancing SCR in the healthcare industry. This study surveys the entire supply chain as part of an empirical test. Additionally, a new model of SCR based on actual data and theory was created. A contribution to the literature on SCR.

Utilizing a mixed research methodology, this study of resilience in the healthcare industry’s multi-level supply chain is relatively new. This study fills the gap in the research on the resilience of China’s HCSC. The SCR model is established. Supply chain managers and enterprise management should focus on SCR management, understand how important COM, OC, and PC are for SCR, and spend more on COM, information systems, and data analysis capability. The Model made by this effort can be actively used to improve China’s SCR management, reducing supply chain disruptions and making China’s healthcare sector more competitive worldwide.

The goal of this study has been achieved. The results show that COM, OC, and PC positively impact SCR. SCR positively impacts SCP. TMS has no significant impact on SCR. The development of China’s medical device industry started late and is currently experiencing rapid growth. Many core components still rely on imports, so there is still much room for improvement in SCR management. From a data analysis perspective, top management still needs to improve SCR management. Especially integrating digital technology into the company’s supply chain management, such as Big data analysis and supply chain innovation brought by new technology.

COM quality, reciprocity, and relational commitment are potential precursors of SCR from the social exchange theory perspective (Can Saglam et al., Citation2022). Findings suggest that COM quality is a crucial component of SCR explanation (Can Saglam et al., Citation2022). Yamin (Citation2021) Using quantitative research to look at a sample of manufacturing businesses in Saudi Arabia, the results show that COM, risk management orientation, leadership commitment, supply chain capacity, and other factors can measure SCR. Blackhurst et al. (Citation2011) discovered that defined COM networks positively relate to supply resilience in a multi-industry empirical study.

TMS, purchasing process planning, and supply chain traceability, respectively, are the three most crucial issues that must be addressed during COVID-19 (Kazancoglu et al., Citation2022). Mandal (Citation2020) took a sample of 12 industries in India, like the chemical industry, medicine, cars, fertilizer, and fast-moving consumer goods, and looked at them using quantitative research. The study found that TMS is a positive enabler of SCR. The samples are different, and those industries may have different ideas (Mandal, Citation2020). Mandal (Citation2020) hopes future researchers will find more validation in two or three different but essential business sectors, which will help bring the research results together. Through quantitative analysis of the textile industry in Pakistan, it was discovered that supplier management, perceived justice, and TMS are strongly related to sustainable supply chain management (Men et al., Citation2023). Supply chain capability has 16 drivers: OC, redundancy, dispersion, efficiency, anticipation, flexibility, and recovery (Cigdem & Nowicki, Citation2018). OC strongly influences SCR through supplier innovativeness, TMS, and strategic sourcing.

Iftikhar et al. (Citation2022) studied the effects of structural supply chain complexity and dynamic supply chain complexity on SCR. Furthermore, structural supply chain complexity has a favorable impact on SCR. Field research and quantitative data from 274 Bangladeshi apparel manufacturers and suppliers revealed that supply chain network complexity and relational practice moderated the association between SCR and SCP (Chowdhury et al., Citation2019). PC increases the supply chain’s complexity (Eckstein et al., Citation2015).

Belhadi et al. (Citation2021) empirically studied the information analysis of digital enterprises from North Africa, southern Europe, and South Asia under the influence of information processing and adaptability provided by artificial intelligence technology and the close relationship between SCR and SCP. SCR can maintain or even improve SCP. Gu (Citation2021) investigated numerous sectors in China using information processing theory. It has been found that SCR can improve SCP. It also shows that SCR will only significantly affect how well the supply chain works if both suppliers and customers use it.

Therefore, the current results of COM, OC, and PC positively impact SCR, and SCR positively impacts SCP. That is strongly supported according to past literature. This study also covers the recommendations of the former researchers mentioned above. New insights into the contribution of all dimensions to supply chain performance enhancement are provided. The importance of TMS to SCR needs to be supported by experience, Indicating that top management needs to pay more attention to SCR and SCP.

14. Managerial implications and contribution

This study has several implications for healthcare administrators. First, the study emphasizes that COM is essential for SCR. So, managers should set up multiple COM channels for supply chain people to communicate with suppliers, logistics providers, and customers. They should also increase the importance of investing in COM systems, information systems, and data analysis capabilities to keep the medical supply chain from being interrupted. Second, managers should consider how a product’s complexity affects the SCR. On the surface, it provides customers with more product choices and brings short-term competitiveness to the company. However, in the long run, the higher the PC, the more complex the supply chain will be, and the more the supply chain will be interrupted, as this study found. Finally, managers should focus on building an OC. This includes providing members with a comfortable workplace to ensure everyone respects each other. Managers set up risk management so that supply chain members can share information quickly, find supply chain risks ahead of time, and adjust to changes at any time. These conditions can help organizations reduce supply chain disruptions and, as a result, improve SCP. Inform managers from the CAS perspective to ensure SCR. They must pay attention to the complete SCR (internal and external). Small changes in the downstream part of the supply chain will lead to amplification and oscillation changes in the upstream supply chain (such as the bullwhip effect). Even though it has not been proven that TMS is essential for SCR, the study suggests that top management knows it is vital to reduce risks and needs to give the team more credit for working together and getting things done.

The Eisenhower Matrix sorts work actions according to the importance and emergency procedures (Dharma & Dwi, Citation2017). So, the SCR matrix was added to SCR management based on how essential and urgent SCR is. Figure shows the matrix. It is made up of four quadrants. The first quadrant shows the priority of importance, followed by the second, third, and fourth quadrants. This matrix can improve the efficiency of SCR management.

Figure 13. SCR matrix.

Source: Adapted from Dharma and Dwi (Citation2017)
Figure 13. SCR matrix.

15. Limitation

The current research has many advantages, but there are also some limitations. The respondents were limited to the healthcare industry in China. The specific background information may affect the research results. Firstly, The quantitative methods have a small sample size and only involve manufacturers and their suppliers in the healthcare industry. Secondly, the qualitative approach only interviewed 19 suppliers, seven customers of one company, and logistics providers for the entire supply chain.

16. Recommendation

Future research needs to increase the sample size. It is suggested that customers (hospitals) should also be considered. Multiple manufacturers and their supply chain partners should also be added for research, and focus interviews should be conducted to obtain more information.

In addition, due to the increasingly stringent supervision of medical devices in China and the implementation requirements of Unique Device Identification (UDI), it is possible to trace the safety and traceability of medical devices. Digital construction can improve the supply chain management of enterprises. It is recommended that researchers pay attention to big data analysis, supply chain traceability, supply chain transparency, supply chain innovation, and artificial intelligence’s strengthening effect on SCR and SCP.

The implementation and improvement of SCR management in China’s healthcare sector will help improve SCP, reduce supply chain disruption, and enhance the international competitiveness of enterprises. The competition between enterprises in the future is not between individual and separate enterprises but between supply chains, which is today’s need.

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Acknowledgments

The authors thank the journal’s anonymous reviewers and senior editor for their constructive comments that improved the quality of the article.

Disclosure statement

No potential conflict of interest was reported by the authors.

Supplementary material

Supplemental data for this article can be accessed online at https://doi.org/10.1080/23311975.2023.2287785

Additional information

Notes on contributors

Qin Xiao

Qin Xiao is a Ph.D. student at the College of Innovation and Management, Suan Sunandha Rajabhat University, Thailand. Her research interests include Supply Chain Management, Innovation management, and Human Resource Management.

Muhammad Shahid Khan

Muhammad Shahid Khan is an assistant professor at the College of Innovation and Management, Suan Sunandha Rajabhat University, Thailand. His research interests include Knowledge Management, Leadership, Innovation, and Human Resource Management.

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Appendix 1.

Interview protocol

Data Collection Questions

Throughout the interviews, these questions were raised. Because the interviews are semi-structured, there may also be ad hoc questions not covered by the protocol, depending on the situation.

  1. Please provide your position. How long have you been in supply chain management or logistics management? Please introduce your organization’s products.

  2. Please briefly describe your organization’s supply chain and logistics design.

  3. What are the primary sources of disruptions and risks in your organization’s supply chain and logistics?

  4. How did your organization detect supply chain and logistics disruptions?

  5. How do supply chain and logistics personnel report disruptions to management? Generally speaking, how long does it take to complete the report?

  6. Given the disruptions and risks identified, in which areas will the organization assess the impact?

  7. How does your organization respond to or handle disruption events? Please provide examples.

  8. What are the most essential suggestions for preparing for disruptions like COVID-19?

Appendix 2.

Overview of measurement instruments

Communication(COM) (Yamin, Citation2021)

COM1: Your firm has multiple communication channels to facilitate supply chain operations.

COM2: Your firm uses an integrated organizational system to communicate with stakeholders.

COM3: Your firm uses the latest integrated communication tools for channel communication.

COM4: The use of frequent communication among your firm’s supply chain partners enhances firm resilience.

Top Management Support (TMS) (Mandal, Citation2020; Lee et al ., 2016)

TMS1: Your firm’s management encourages the use of technologies for responding to disruptions

TMS2: Your firm’s management always encourages us to work in groups to fight disruptions

TMS3: Your firm’s top management recognizes collaborative efforts

TMS4: Your firm’s top management rewards teamwork and achievements

TMS5: Your firm’s top management acknowledges risk mitigation in efforts

Product complexity(PC)(Eckstein et al. (Citation2015))

PC1: Your firm offers your customers diverse add-ons and the option of production individualization.

PC2: Your firm’s products consist of a high number of components.

PC3: Your firm frequently offers new product variants.

Organization culture (OC)(Mandal (Citation2020); Rameshwar et al.,2017)

OC1 Your employees have a lot of respect for one another

OC2 Your employees encourage timely information sharing

OC3 Your employees are ready to accept any upcoming change

OC4 Your employees want to involve each other in decision-making

OC5 Your employees want to respond to customer queries on time

Supply chain Resilience (SCR)(Mandal (Citation2020); Mandal et al. (Citation2016))

SCR1: Your firm’s SC has the capacity to restore operations when faced with a disruption

SCR2: Your firm’s SC can deal with the financial consequences of a disruption

SCR3: Your firm’s SC can maintain connectedness among its key members during a disruption

SCR4: Your firm’s SC can move to the earlier state of performance when disrupted

SCR5: Your firm’s SC has the necessary infrastructure to sustain operations in the event of a disruption

Supply chain performance (SCP) (Gu et al ., 2020)

SCP1: Your firm’s supply chain has the ability to quickly modify products to meet customers’ requirements.

SCP2: Your firm’s supply chain allows us to quickly introduce new products into our markets.

SCP3: Your firm’s length of supply chain process is getting shorter.

SCP4: Your firm is satisfied with the speediness of the supply chain process.

SCP5: Based on your knowledge of the supply chain process, your firm thinks that it is efficient.

SCP6: Your firm’s supply chain has an outstanding on-time delivery record.

SCP7: Your firm’s supply chain provides high-level customer services.