The impact of R&D investment on mitigating supply chain disruptions: Empirical evidence from U.S. firms

Mahour Mellat Parast

International Journal of Production Economics, 2020, vol. 227, issue C

Abstract: The purpose of this paper is to examine the moderating effect of a firm's R&D investment in mitigating supply chain disruptions. We use four categories of disruption risks in a supply chain: demand, process, supply, and environmental. Building upon dynamic capability theory, we examine the relationships among a firm's R&D investment, supply chain disruption risk drivers, supply chain performance, and firm performance, using data collected from manufacturing and service organizations in the U.S. Our findings show that a firm's R&D investment can be regarded as enhancing the firm's resilience capability. R&D investment significantly mitigates the effects of process disruption, supply disruption, and demand disruption on firm performance. R&D investment significantly mitigates the effects of process disruption and environmental disruption on supply chain performance. Our study provides one of the early empirical findings of the role of a firm's investment in innovation as a means of improving the firm's resilience to supply chain disruptions.

Keywords: Supply chain disruption; Supply chain resilience; R&D investment; Firm performance; Supply chain performance; Innovation (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (21)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:227:y:2020:i:c:s0925527320300657

DOI: 10.1016/j.ijpe.2020.107671

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