Redesigning global supply chains during compounding geopolitical disruptions: the role of supply chain logics

This study identifies a constrained system of reasoning (decision-making logic) employed by managers when they redesign their supply chains in situations of heightened uncertainty. When redesigning global supply chains, the authors find that managerial decision-making logic is constrained by three distinct environmental conditions: 1) the perceived intensity of institutional pressures; 2) the relative mobility of suppliers and supply chain assets, and; 3) the perceived severity of the potential disruption risk. Intense government pressure and persistent geopolitical risk tend to impact firms in the same industry, resulting in similar approaches to decision-making regarding supply chain design. However, where suppliers are relatively immobile and supply chain assets are relatively fixed, a dominant logic is consistently present.

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