Effects of natural disasters on global sourcing complexity: International evidence

Thang Doan and Thi Kim Chi Vu

The Journal of International Trade & Economic Development, 2026, vol. 35, issue 1, 58-91

Abstract: In this paper we develop and test the hypothesis that natural disasters influence global sourcing complexity. Employing rich data from 128 nations between 1997 and 2014, our findings suggest that the occurrence of natural catastrophes drives firms to purchase the same intermediate goods from multiple suppliers and nations, and as consequence natural disasters foster global sourcing complexity. The paper further explores the boundary conditions of various forms of natural disasters, the level of economic development, long-term orientation culture, and banking crisis of a particular country on the relationship between natural disasters and global sourcing complexity. Thus, our study adds to and extends the global sourcing literature in the context of natural disasters and holds managerial relevance regarding managers’ response to natural disasters.

Date: 2026
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DOI: 10.1080/09638199.2025.2585012

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