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Achieving Resilience and Business Sustainability during COVID-19: The Role of Lean Supply Chain Practices and Digitalization

Author

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  • Matteo Trabucco

    (Department of Business and Management, Luiss University, 00197 Roma, Italy)

  • Pietro De Giovanni

    (Department of Business and Management, Luiss University, 00197 Roma, Italy)

Abstract

This paper investigates how firms can enjoy a sustainable business even during the COVID-19 pandemic. The adoption of lean coordination mechanisms over the supply chain (SC) and lean approaches in omnichannel strategies can guarantee the business sustainability and resilience. Furthermore, we investigate whether business sustainability, along with digitalization through mobile apps, Artificial Intelligence systems, and Big Data and Machine Learning enable firms’ resilience. We first explore the background on the subject, identify the research gap, and develop some research hypotheses to be tested. Then, we present the data collection process and the sample, which finally consists of firms from different sectors, including retailing, electronics, pharmaceutics, and agriculture. Several logistic regression models are developed and estimated to generate findings and managerial insights. Our results show that a lean omnichannel approach is an effective practice to preserve production costs, SC visibility, inventory available over the SC, and sales. Furthermore, lean coordination with contracts can make a business sustainable by preserving quality, ROI, production costs, customer service, and inventory availability. Finally, firms can be highly sustainable through resilience when they engage in sustainable ROI, SC visibility, and sales; in contrast, the adoption of mobile apps worsens firms’ resilience, which is not influenced by Artificial Intelligence and Big Data and Machine Learning.

Suggested Citation

  • Matteo Trabucco & Pietro De Giovanni, 2021. "Achieving Resilience and Business Sustainability during COVID-19: The Role of Lean Supply Chain Practices and Digitalization," Sustainability, MDPI, vol. 13(22), pages 1-19, November.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:22:p:12369-:d:675257
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    2. Giorgia Sammarco & Daniel Ruzza & Behzad Maleki Vishkaei & Pietro De Giovanni, 2022. "The Impact of Digital Technologies on Company Restoration Time Following the COVID-19 Pandemic," Sustainability, MDPI, vol. 14(22), pages 1-17, November.
    3. Nishant Saravanan & Jessica Olivares-Aguila & Alejandro Vital-Soto, 2022. "Bibliometric and Text Analytics Approaches to Review COVID-19 Impacts on Supply Chains," Sustainability, MDPI, vol. 14(23), pages 1-33, November.
    4. Haixia Bai & Wenxue Ran, 2022. "Analysis of the Vulnerability and Resilience of the Tourism Supply Chain under the Uncertain Environment of COVID-19: Case Study Based on Lijiang," Sustainability, MDPI, vol. 14(5), pages 1-20, February.
    5. Jihane Ktite & Meryem El Alaoui Amine, 2022. "Towards a resilient and sustainable supply chain: bibliometric analysis and systematic review of the literature [Vers une Supply Chain résiliente et durable : analyse bibliométrique et revue systém," Post-Print hal-03914969, HAL.
    6. Adriano de Oliveira Martins & Fernando Elemar Vicente dos Anjos & Debora Oliveira da Silva, 2023. "The Lean Farm: Application of Tools and Concepts of Lean Manufacturing in Agro-Pastoral Crops," Sustainability, MDPI, vol. 15(3), pages 1-20, February.
    7. Alla Mostepaniuk & Elsie Nasr & Razan Ibrahim Awwad & Sameer Hamdan & Hasan Yousef Aljuhmani, 2022. "Managing a Relationship between Corporate Social Responsibility and Sustainability: A Systematic Review," Sustainability, MDPI, vol. 14(18), pages 1-23, September.
    8. Agnieszka Janik & Adam Ryszko, 2023. "Sustainability Reporting during the Crisis—What Was Disclosed by Companies in Response to the COVID-19 Pandemic Based on Evidence from Poland," Sustainability, MDPI, vol. 15(17), pages 1-54, August.
    9. Florentina Kurniasari & Elissa Dwi Lestari & Hendy Tannady, 2023. "Pursuing Long-Term Business Performance: Investigating the Effects of Financial and Technological Factors on Digital Adoption to Leverage SME Performance and Business Sustainability—Evidence from Indo," Sustainability, MDPI, vol. 15(16), pages 1-20, August.

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