IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v200y2025ics1366554525002273.html

Invisible threats: The impact of perceived political risk misalignment on firm’s operational resilience

Author

Listed:
  • Liu, Yang
  • Xi, Mengjie
  • Zhou, Yi
  • Feng, Taiwen
  • Fang, Wei
  • Wang, Wenxuan

Abstract

In the context of escalating global geopolitical risk, relying solely on a firm’s own risk awareness is insufficient to ensure operational continuity. Different risk perceptions among supply chain members can lead to inconsistencies in risk assessment and response strategies, thereby undermining a firm’s ability to effectively manage political risk. However, existing research often overlooks the presence and potential impact of perceived political risk misalignment in supply chains. Therefore, this research explores the impact of perceived political risk misalignment between buyer firms and their suppliers on the operational resilience of buyer firms, and further examines the moderating roles of supply network characteristics. Using data from publicly listed U.S. manufacturing firms between 2020 and 2022, this study constructs 1421 dyadic pairs of suppliers and buyer firms, along with their supply networks, to test the hypotheses. The results indicate that perceived political risk misalignment significantly weakens the operational resilience of buyer firms. Moreover, the degree centrality of buyer firms amplifies this negative impact, while the clustering coefficient of the supply network mitigates it. By extending political risk research from the firm level to the supply chain context, this study enriches the literature on supply chain risk management and operational resilience, and emphasizes the importance of aligning risk perceptions within supply chains.

Suggested Citation

  • Liu, Yang & Xi, Mengjie & Zhou, Yi & Feng, Taiwen & Fang, Wei & Wang, Wenxuan, 2025. "Invisible threats: The impact of perceived political risk misalignment on firm’s operational resilience," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 200(C).
    • Handle: RePEc:eee:transe:v:200:y:2025:i:c:s1366554525002273
    DOI: 10.1016/j.tre.2025.104186
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554525002273
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2025.104186?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Liu, Weihua & Yuan, Chaolun & Wang, Jingkun & Lim, Ming K & Hou, Jiahe, 2024. "Digital supply chain announcements and firm’s stock market value: An empirical study from China," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 187(C).
    2. Huang, Guan-Ying & Shen, Carl Hsin-han & Wu, Zhen-Xing, 2023. "Firm-level political risk and debt choice," Journal of Corporate Finance, Elsevier, vol. 78(C).
    3. Ali, Imran & Gligor, David & Balta, Maria & Bozkurt, Siddik & Papadopoulos, Thanos, 2024. "From disruption to innovation: The importance of the supply chain leadership style for driving logistics innovation in the face of geopolitical disruptions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 187(C).
    4. Sharma, Amalesh & Pathak, Surya & Borah, Sourav Bikash & Adhikary, Anirban, 2022. "Collaboration strategies in buyer-supplier relational (BSR) networks and sustainable firm performance: A trade-off story," International Journal of Production Economics, Elsevier, vol. 253(C).
    5. Essuman, Dominic & Bruce, Patience Aku & Ataburo, Henry & Asiedu-Appiah, Felicity & Boso, Nathaniel, 2022. "Linking resource slack to operational resilience: Integration of resource-based and attention-based perspectives," International Journal of Production Economics, Elsevier, vol. 254(C).
    6. Essuman, Dominic & Boso, Nathaniel & Annan, Jonathan, 2020. "Operational resilience, disruption, and efficiency: Conceptual and empirical analyses," International Journal of Production Economics, Elsevier, vol. 229(C).
    7. Deepak Agrawal & Nikolay Osadchiy, 2024. "Inventory Productivity and Stock Returns in Manufacturing Networks," Manufacturing & Service Operations Management, INFORMS, vol. 26(2), pages 573-593, March.
    8. Dankyira, Felix Kissi & Essuman, Dominic & Boso, Nathaniel & Ataburo, Henry & Quansah, Emmanuel, 2024. "Clarifying supply chain disruption and operational resilience relationship from a threat-rigidity perspective: Evidence from small and medium-sized enterprises," International Journal of Production Economics, Elsevier, vol. 274(C).
    9. Luke Rhee & Paul M. Leonardi, 2018. "Which pathway to good ideas? An attention‐based view of innovation in social networks," Strategic Management Journal, Wiley Blackwell, vol. 39(4), pages 1188-1215, April.
    10. Orlova, Svetlana & Sun, Li, 2024. "Firm-level political risk and labor performance," International Review of Financial Analysis, Elsevier, vol. 96(PB).
    11. Yang, Yang & Jiang, Yan, 2023. "Buyer-supplier CSR alignment and firm performance: A contingency theory perspective," Journal of Business Research, Elsevier, vol. 154(C).
    12. Tarek A Hassan & Stephan Hollander & Laurence van Lent & Ahmed Tahoun, 2019. "Firm-Level Political Risk: Measurement and Effects," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(4), pages 2135-2202.
    13. Cheng, Colin C.J. & Shiu, Eric C., 2020. "What makes social media-based supplier network involvement more effective for new product performance? The role of network structure," Journal of Business Research, Elsevier, vol. 118(C), pages 299-310.
    14. Henry Ataburo & Getrude Effah Ampong & Dominic Essuman, 2024. "Developing operational resilience to navigate transportation disruptions: the role and boundaries of efficiency priority," Annals of Operations Research, Springer, vol. 340(2), pages 723-755, September.
    15. Cen, Ling & Maydew, Edward L. & Zhang, Liandong & Zuo, Luo, 2017. "Customer–supplier relationships and corporate tax avoidance," Journal of Financial Economics, Elsevier, vol. 123(2), pages 377-394.
    16. Boah, Emmanuel & Ujah, Nacasius U., 2024. "Firm-level political risk and corporate R&D investment," Journal of Empirical Finance, Elsevier, vol. 78(C).
    17. Parast, Mahour M., 2022. "Toward a contingency perspective of organizational and supply chain resilience," International Journal of Production Economics, Elsevier, vol. 250(C).
    18. Wang, Liang, 2023. "Mitigating firm-level political risk in China: The role of multiple large shareholders," Economics Letters, Elsevier, vol. 222(C).
    19. Huynh, Nhan & Le, Quynh Nga & Tran, Quang Thien, 2024. "Firm-level political risk and intellectual capital investment: Does managerial ability matter?," International Review of Financial Analysis, Elsevier, vol. 91(C).
    20. Woon Sau Leung & Jing Li & Jiong Sun, 2020. "Labor Unionization and Supply‐Chain Partners’ Performance," Production and Operations Management, Production and Operations Management Society, vol. 29(5), pages 1325-1353, May.
    21. Shou, Yongyi & Zhao, Xinyu & Dai, Jing & Xu, Dong, 2021. "Matching traceability and supply chain coordination: Achieving operational innovation for superior performance," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 145(C).
    22. Dong, John Qi & Yang, Chia-Han, 2016. "Being central is a double-edged sword: Knowledge network centrality and new product development in U.S. pharmaceutical industry," Technological Forecasting and Social Change, Elsevier, vol. 113(PB), pages 379-385.
    23. Juan Camilo Serpa & Harish Krishnan, 2018. "The Impact of Supply Chains on Firm-Level Productivity," Management Science, INFORMS, vol. 64(2), pages 511-532, February.
    24. William Ocasio & Tomi Laamanen & Eero Vaara, 2018. "Communication and Attention Dynamics : an Attention-Based View of Strategic Change," Post-Print hal-02312047, HAL.
    25. William Ocasio & Tomi Laamanen & Eero Vaara, 2018. "Communication and attention dynamics: An attention‐based view of strategic change," Strategic Management Journal, Wiley Blackwell, vol. 39(1), pages 155-167, January.
    26. Peng Liang & Hasan Cavusoglu & Nan Hu, 2023. "Customers’ managerial expectations and suppliers’ asymmetric cost management," Production and Operations Management, Production and Operations Management Society, vol. 32(6), pages 1975-1993, June.
    27. Melissa A. Schilling & Corey C. Phelps, 2007. "Interfirm Collaboration Networks: The Impact of Large-Scale Network Structure on Firm Innovation," Management Science, INFORMS, vol. 53(7), pages 1113-1126, July.
    28. Xi, Mengjie & Liu, Yang & Fang, Wei & Feng, Taiwen, 2024. "Intelligent manufacturing for strengthening operational resilience during the COVID-19 pandemic: A dynamic capability theory perspective," International Journal of Production Economics, Elsevier, vol. 267(C).
    29. Shi, Jinyan & Liu, Xu & Li, Yanxi & Yu, Conghui & Han, Yushan, 2022. "Does supply chain network centrality affect stock price crash risk? Evidence from Chinese listed manufacturing companies," International Review of Financial Analysis, Elsevier, vol. 80(C).
    30. Wang, Yuhong & Cullinane, Kevin, 2016. "Determinants of port centrality in maritime container transportation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 95(C), pages 326-340.
    31. Jessica L. Darby & David J. Ketchen & Brent D. Williams & Travis Tokar, 2020. "The Implications of Firm‐Specific Policy Risk, Policy Uncertainty, and Industry Factors for Inventory: A Resource Dependence Perspective," Journal of Supply Chain Management, Institute for Supply Management, vol. 56(4), pages 3-24, October.
    32. William Ocasio, 1997. "Towards An Attention‐Based View Of The Firm," Strategic Management Journal, Wiley Blackwell, vol. 18(S1), pages 187-206, July.
    33. Gad, Mahmoud & Nikolaev, Valeri & Tahoun, Ahmed & van Lent, Laurence, 2024. "Firm-level political risk and credit markets," Journal of Accounting and Economics, Elsevier, vol. 77(2).
    34. John Joseph & Alex J. Wilson, 2018. "The growth of the firm: An attention‐based view," Strategic Management Journal, Wiley Blackwell, vol. 39(6), pages 1779-1800, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Weiqi Dai & Mingqing Liao & Qiao Lin & Jincai Dong, 2022. "Does entrepreneurs’ proactive attention to government policies matter?," Asian Business & Management, Palgrave Macmillan, vol. 21(3), pages 396-431, July.
    2. Max M. Weber & Peter Kokott, 2024. "Organizational Resilience and the Attention-Based View of the Firm—Empirical Evidence from German SMEs," Sustainability, MDPI, vol. 16(11), pages 1-24, May.
    3. Kleinknecht, Robert & Haq, Hammad Ul & Muller, Alan R. & Kraan, Karolus O., 2020. "An attention-based view of short-termism: The effects of organizational structure," European Management Journal, Elsevier, vol. 38(2), pages 244-254.
    4. Souza-Santos, Renato & Carneiro, Jorge & Andersson, Ulf, 2025. "Pursuing headquarters’ attention: Foreign subsidiaries’ strategic issue selling," International Business Review, Elsevier, vol. 34(3).
    5. Angelshaug, Magne S. & Saebi, Tina & Foss, Nicolai J., 2025. "Steering managerial attention towards business model innovation: The role of organizational design," Journal of Business Research, Elsevier, vol. 198(C).
    6. Tomi Laamanen, 2019. "Dynamic attention-based view of corporate headquarters in MNCs," Journal of Organization Design, Springer;Organizational Design Community, vol. 8(1), pages 1-15, December.
    7. Kangkang Yu & Shaobo Hou & Cheng Qian & Lingbo Zhang, 2024. "CEO attention and sustainable development: An analysis of its influence on firm's sustainability orientation," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(4), pages 4042-4056, August.
    8. Wang, Xincheng & Li, Yuan & Tian, Longwei & Hou, Ye, 2023. "Government digital initiatives and firm digital innovation: Evidence from China," Technovation, Elsevier, vol. 119(C).
    9. Ceballos, Luis & Piljak, Vanja & Swinkels, Laurens, 2024. "Is firm-level political risk priced in the corporate bond market?," Journal of Empirical Finance, Elsevier, vol. 79(C).
    10. Anneleen Michiels & Diane Arijs & Lorraine Uhlaner, 2022. "Formal HRM in family SMEs: the role of family-centered goals and family governance," Review of Managerial Science, Springer, vol. 16(8), pages 2553-2576, November.
    11. Andrews, Daniel S. & Fainshmidt, Stav & Ambos, Tina & Haensel, Kira, 2022. "The attention-based view and the multinational corporation: Review and research agenda," Journal of World Business, Elsevier, vol. 57(2).
    12. Xi, Mengjie & Liu, Yang & Fang, Wei & Feng, Taiwen, 2024. "Intelligent manufacturing for strengthening operational resilience during the COVID-19 pandemic: A dynamic capability theory perspective," International Journal of Production Economics, Elsevier, vol. 267(C).
    13. Angulo-Ruiz, Fernando & Pergelova, Albena & Dana, Leo Paul, 2020. "The internationalization of social hybrid firms," Journal of Business Research, Elsevier, vol. 113(C), pages 266-278.
    14. Basha, Shabeen Afsar & Benkraiem, Ramzi & Ben-Nasr, Hamdi & Masum, Abdullah-Al, 2025. "Does political risk exacerbate climate risk? Firm-level evidence," International Review of Financial Analysis, Elsevier, vol. 104(PA).
    15. Datta, Subhadeep & Mukherjee, Sourjo, 2022. "In families we trust: Family firm branding and consumer’s reaction to product harm crisis," Journal of Business Research, Elsevier, vol. 151(C), pages 257-268.
    16. Philip Mundlos, 2025. "The impact of artificial intelligence on managerial attention allocation for discontinuous change: a conceptual framework," Management Review Quarterly, Springer, vol. 75(2), pages 1-45, June.
    17. Victor Barros & Isabel Ramos, 2025. "Collective attention overload in a global manufacturing company: a case study," Information Systems and e-Business Management, Springer, vol. 23(2), pages 391-422, June.
    18. Sheppard, Jerry Paul & Young, Jesse, 2023. "An essential stupidity-based review of the Deepwater Horizon disaster," Business Horizons, Elsevier, vol. 66(1), pages 65-73.
    19. Fang, Yiwei & Fiordelisi, Franco & Hasan, Iftekhar & Leung, Woon Sau & Wong, Gabriel, 2023. "Corporate culture and firm value: Evidence from crisis," Journal of Banking & Finance, Elsevier, vol. 146(C).
    20. Matti Mäntymäki & Sami Hyrynsalmi & Antti Koskenvoima, 2020. "How Do Small and Medium-Sized Game Companies Use Analytics? An Attention-Based View of Game Analytics," Information Systems Frontiers, Springer, vol. 22(5), pages 1163-1178, October.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transe:v:200:y:2025:i:c:s1366554525002273. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.