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

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  • Parast, Mahour Mellat

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.

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  • Parast, Mahour Mellat, 2020. "The impact of R&D investment on mitigating supply chain disruptions: Empirical evidence from U.S. firms," International Journal of Production Economics, Elsevier, vol. 227(C).
    • Handle: RePEc:eee:proeco:v:227:y:2020:i:c:s0925527320300657
    DOI: 10.1016/j.ijpe.2020.107671
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