Sustaining company performance during the war-induced crisis using sourcing capability and substitute input

Building on the foundations of Resource-based view theory, Resource dependence theory, and dynamic capabilities theory, we derived theoretical support for the proposition that companies can sustain their operational activities and organizational economic performance during conflict and political instability. The study presents a conceptual model designed to reduce offshore dependence and maintain operational organizational capabilities. The study applies a systematic literature review approach to synthesize existing theories and research on the topic of crisis management and its impact on organizational sustainability during a war-induced crisis. A literature review encompassed identification of the themes that was followed by conceptualizing the model, and development of the propositions. The search terms included “organizational operational performance,” “sustained economic performance,” “economic crisis,” “crisis management”, “war crisis” and “conflict crisis”. Selection criteria for existing literature were based on relevance to the topic, quality of research, and theoretical contribution. Content analysis was performed to identify key themes and patterns referencing war, supply, sourcing capabilities, and sustainability. A detailed, systematic, and rigorous review of relevant literature, theories, and concepts in the field resulted in the identification of strategic activities for fostering cost-effective practices. Sustainable performance, by this account, can be achieved by assessing damage to supply chains and compensating for oil, gas, and energy flow vulnerabilities during crises. When pre-existing channels are cut off, resilient enterprises quickly use their human, infrastructural, and technological internal capabilities to rapidly obtain distinct auxiliary resources for production and manufacturing. By analyzing and synthesizing existing frameworks and concepts, we integrated current knowledge and recent developments on key variables. The research indicates that functional capabilities, such as continuous material flow, input diversification, environmental constraint management, and coordination among different organizational units, improve organizational sustainability. This will help to avoid bankruptcy when resources are scarce, and first-tier suppliers are located in conflict-affected countries. The paper identifies the drivers of resource availability, namely frequency in resource discovery, technological change in extraction methods, consumption, substitution, re-usage, and loss. Business capabilities explored in this paper are primarily stabilization-oriented and were chosen due to their potential for mitigating the consequences of resource scarcity.