Configuring Supply Chain Dyads for Regulatory Disruptions: A Behavioral Study of Scenarios

Shardul Phadnis and Nitin Joglekar

Production and Operations Management, 2021, vol. 30, issue 4, 1014-1033

Abstract: This study examines the use of scenario planning—a strategic planning tool used for making decisions of long‐term nature—to adapt a buyer–supplier dyad for disruptions in their supply chain resulting from abrupt changes in regulations. We posit that dyadic scenarios, that is, those created jointly by a buyer and a supplier, alter the scope of supply chain design in relation to a regulatory disruption. We offer four hypotheses distinguishing dyadic scenario creation from the traditional single‐firm scenario creation and two additional hypotheses related specifically to scenarios of regulatory disruptions. Five of the six hypotheses are supported in a behavioral study of a regulatory context. We integrate these findings to propose a Supply Chain Regulation Preparedness (SRP) framework for assessing the effects of dyadic scenario creation in six regimens of regulatory disruptions. We discuss the implications of this framework for the theory and practice of organizational learning associated with supply chain configurations in the face of emergent public policies and highlight collaborative scenario planning as an emergent strategic‐level mechanism that supply chain partners can deploy jointly to address just‐in‐case uncertainties.

Date: 2021
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