Supply chain reconfiguration in response to geopolitical disruptions: exploration versus exploitation

Abstract

Companies have extensively invested in offshoring strategies, creating geographically dispersed, complex networks. Organisational ambidexterity through balancing the exploration (flexibility) and exploitation (efficiency) capabilities in supply chains enables firms mitigate the negative impact of supply chain disruptions. In this study, we aim to identify the mechanisms by which companies respond to geopolitical and natural disruptions in the context of the US-China trade war, Brexit, and the coronavirus pandemic. This study highlights companies’ need to be simultaneously efficient and responsive in their supply chain operations to become resilient against a global pandemic and geopolitical tensions.