3 Development of Conceptual Framework
3.3 Constructs of Extended Resilience Model
In case of international supply chain, the processes are spread over different geo- graphical location. The unique locational conditions affect the input, operations and output of processes across the supply chain stages. For the purpose of opera- tionalization this study define supply chain resilience as the cumulative effect of processes carried by supply chain firms located in different countries with unique conditions118. Country specific conditions affect supply chain process segment resilience. However firms located in countries with turbulent conditions are still part of international supply chains. For this the objective of the investigation is to find whether international garments supply chain processes show differences in resilience for firms located in different countries.
International supply chain spreads over geography and processes of procurement, manufacturing and distribution are carried across countries each with different conditions. Countries have unique attributes exhibited by the natural, physical, human, social, political and environmental conditions119. The assumption of the
118 Dou & Sarkis, 2010, p. 571
study is that country conditions influence the resilience of supply chain processes (Figure 7). Each stage of supply chain is both thriving and disturbed by the at- tribute of location. In case of international supply chain with partners located in different countries will be affected by the conditions of the country of location.
Figure 7 Cause-Effect Chain for International Supply Chain
Garment manufacturers located in Pakistan and Turkey supply garment to Eu- rope besides other destinations like American, Australian and African markets. Pakistan and Turkey have different conditions and are expected to have different effects on manufacturing process. Similarly the process of transportation is stud- ied in Pakistan, Turkey and Germany with different conditions and are expected to have different effects on transportation process. A supply chain process takes
input for its operations and the firm's location determine the availability, reliabil- ity and cost aspects of the process input given to the unique conditions.
As shown in Figure 7, the country specific environment effects each stage of supply chain. The organizational environment defined by coping capacity and adaptive capability also has effects on respective stage of supply chain. These former stage of supply chain is input to the next stage also effect carries the ef- fects with it. Thus the overall resilience of supply chain is determined by the re- silience at every stage of the chain. It is also depicted in Figure 7 that each stage has quality, quantity, schedule and cost aspect to be considered. The quality of process affects the quantity to be processed and both quality and quantity of stage affect schedule of processing. The cost of processing depends on quality, quanti- ty and schedule of processing at the stage level. These aspects at a stage have effects on the aspects of following stage in supply chain. The ultimate purpose is to optimize in such a way that costs are minimized and profit is maximized. The framework suggests that resilience of supply chain process is influenced by adaptive capability and disruption vulnerability. The resilience of supply chain processes in turn affect the global resilience of supply chain that influence the cost of supply chain. In order to investigate the above stated objectives two measurement instruments for manufacturing and transportation were developed. The manufacturing instrument was designed to collect data on manufacturing adaptive capability, manufacturing vulnerability and manufacturing resilience of the firm. Similarly, the transportation instrument is in parallel to manufacturing instrument as far as the constructs are concerned. However given to difference in the nature of operations, required input resources and output service aimed at are different.
The general framework of supply chain resilience has been extended for the pur- pose of empirical investigation in this study. The scope of study is limited to the study of manufacturing and transportation stages. In this context, the existing model of resilience, as discussed earlier, has been extended over the processes of manufacturing and transportation as presented in Figure 8.
Figure 8 Constructs of Extended Resilience Model
The extended model suggests the constructs both for manufacturing and transpor- tation of adaptive capability, disruption vulnerability and resilience respectively. The overall resilience is represented by supply chain global resilience and supply chain risk costs.
3.3.1.1 Manufacturing Adaptive Capability Construct
The construct of manufacturing adaptive capability (MAC) represents the alter- nate resources and methods that can be adapted in case of the process is hit by either internal or external disruptive event. The organizational and locational op- portunities provide the ability to respond to disturbances. Location with number of raw material suppliers, availability of workers, and multitude of manufacturers are some of the possibilities to adapt to new situation without incurring substan- tial costs.
3.3.1.2 Manufacturing Disruption Vulnerability Construct
Manufacturing Disruption Vulnerability (MDV) captures the situations where the process of manufacturing is disturbed by disruptive events. Manufacturing pro-
cess depends on number of inputs that are processed into products. The disturb- ance in input sources and operations cause variability in manufacturing.
3.3.1.3 Transportation Adaptive Capability Construct
The construct of transportation adaptive capability represents the ability of the process to respond to disturbances caused by disruptive events. Possibility of us- ing alternate means and methods of transportation constitute the adaptive capa- bility of the process. The location with number of transportation methods and routes help develop readiness to respond to disturbances.
3.3.1.4 Transportation Disruption Vulnerability Construct
The construct represents the situations when the process of transportation is dis- turbed. The modes of transportation and routes are exposed to disturbances and leads to process variation. Vehicle breakdown, routes closures, weather condi- tions are potential issues.
3.3.1.5 Manufacturing Resilience Construct
The construct of manufacturing resilience (MR) represents the functioning of process after being affected by manufacturing vulnerability and treated by adap- tive capability. It considers the service level of manufacturing process.
3.3.1.6 Transportation Resilience Construct
The construct represents the service level of transportation process that continues functioning after being affected by disruptive event and attended by adaptive ca- pability.
3.3.1.7 Supply Chain Global Resilience Construct
Supply chain global resilience represents the overall reliability of supply chain and result of the constituent processes carried out by respective entities. In this model the overall resilience is resultant of manufacturing and transportation pro- cesses.
3.3.1.8 Supply Chain Risk Costs Construct
The construct of resilience of supply chain risk cost represents the cost objective of supply chain. Variation in supply chain processes causes increase in costs. Supply chain global resilience influences the overall costs.
Thus the study extends the existing model of supply chain resilience. The ex- tended model has the constructs of manufacturing adaptive capability, manufac- turing disruption vulnerability, transportation adaptive capability, transportation disruption vulnerability, manufacturing resilience, transportation resilience, sup- ply chain global resilience, and supply chain risk costs. The extended model sug- gests causal relationships among construct that are discussed in the following section.