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Development‐Aid Supply Chains for Economic Development and Post‐Disaster Recovery

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  • ManMohan S. Sodhi
  • James Knuckles

Abstract

This study seeks to conceptualize supply chains that use funding from large donors or governments for long‐term recovery following a disaster, or more generally, for economic development in a region. We call these development‐aid supply chains (DASC) distinct from commercial or humanitarian supply chains. With little available formally on DASCs in the literature, we carried out a field study across five solar lantern supply chains in Haiti set up for recovery following the massive 2010 earthquake. Stakeholder resource‐based view allowed us to use stakeholder theory, utility theory, and the resource‐based view in analyzing how these supply chains work. We observed how donor cash in these supply chains brings together global original equipment manufacturers; national‐level distributors; impact investors; microfinance institutions; retailers; and micro‐entrepreneurs. Many of these entities are social enterprises that bridge development‐minded donors with commercially oriented retailers and micro‐entrepreneurs. The result of these bridging efforts is the flow of goods, cash, and social impact data. Our conceptual model flags the problem that donor funding, while crucial for reducing deprivation in the short term, may increase the dependence on aid rather than reduce it.

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  • ManMohan S. Sodhi & James Knuckles, 2021. "Development‐Aid Supply Chains for Economic Development and Post‐Disaster Recovery," Production and Operations Management, Production and Operations Management Society, vol. 30(12), pages 4412-4434, December.
    • Handle: RePEc:bla:popmgt:v:30:y:2021:i:12:p:4412-4434
    DOI: 10.1111/poms.13489
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    1. Maria Besiou & Alfonso J. Pedraza‐Martinez & Luk N. Van Wassenhove, 2021. "Humanitarian Operations and the UN Sustainable Development Goals," Production and Operations Management, Production and Operations Management Society, vol. 30(12), pages 4343-4355, December.
    2. Timperio, Giuseppe & Kundu, Tanmoy & Klumpp, Matthias & de Souza, Robert & Loh, Xiu Hui & Goh, Kelvin, 2022. "Beneficiary-centric decision support framework for enhanced resource coordination in humanitarian logistics: A case study from ASEAN," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 167(C).

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