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Buying on the upstream and downstream of the retailers: Market resilience, self-regulation, and heteronomy during a disaster

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  • Sheu, Jiuh-Biing
  • Kuo, Hsin-Tsz
  • Choi, Thomas

Abstract

When a disaster strikes (e.g., COVID-19), we observe “forward” buying from the retailers and “reactionary” buying from the consumers. These two buying activities are intricately intertwined with the retailer in the middle. In response to the disaster, the retailers buy forward on the upstream side, and the consumers on the downstream engage their reactionary buying. Our study investigates how these two buying behaviors correlate with market resilience under the moderating effects of self-regulation and heteronomy. Based on the samples of 136 personal protective equipment (PPE) retail firms and 140 end-customers, our empirical results indicate that heteronomy has a significant influence on alleviating the effects of forward buying and reactionary buying on market resilience. Furthermore, the reverse effect of market resilience on forward buying is verified. We provide theoretical contributions and managerial implications of the correlation between the two disaster-induced buying behaviors and market resilience under the moderating effects of self-regulation and heteronomy.

Suggested Citation

  • Sheu, Jiuh-Biing & Kuo, Hsin-Tsz & Choi, Thomas, 2026. "Buying on the upstream and downstream of the retailers: Market resilience, self-regulation, and heteronomy during a disaster," International Journal of Production Economics, Elsevier, vol. 298(C).
    • Handle: RePEc:eee:proeco:v:298:y:2026:i:c:s0925527326001271
    DOI: 10.1016/j.ijpe.2026.110036
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