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Does Disruptive Event Affect Supply Base Size: Evidence from an Emerging Economy
Foreign Trade Review Pub Date : 2020-10-15 , DOI: 10.1177/0015732520947903
Pushpesh Pant 1 , Hari Vishal 1 , S. P. Sarmah 1
Affiliation  

This article examines the effect of disruptive event, namely recession, on supply base management (measured by supply base size) by using a large and longitudinal dataset on Indian manufacturing firms. It is found that the buyer firms have increased their supply base size at the annual rate of 8.23 suppliers per year per manufacturer during the pre-recession (2004–2007) period. The strategy of having a larger supply base is viable, specifically, in an emerging economy (e.g., India) as the probability of disruptions is high due to the inadequacy of basic inputs such as physical infrastructure, logistics services, technology, etc. Therefore, manufacturers tend to have a number of suppliers for the same product group to reduce supplier dependence. Further, we find that buying firms preferred to have a larger supply base even after a recession (2010–2013). However, they have increased their supply base size at the annual rate of just 0.2 (compared to 8.3 during the pre-recession period) suppliers per year per manufacturer during the post-recession. This study highlights the importance of a disruptive event (proxied by recession), by examining its association with supply base size in the emerging economy perspective. JEL Codes: C1, C5, C8

中文翻译:

颠覆性事件是否影响供应基础规模:来自新兴经济体的证据

本文使用印度制造公司的大型纵向数据集,研究了破坏性事件(即经济衰退)对供应基础管理(以供应基础规模衡量)的影响。结果表明,在经济衰退前(2004-2007)期间,买方公司以每个制造商每年 8.23 个供应商的年增长率增加了其供应基础规模。拥有更大供应基础的战略是可行的,特别是在新兴经济体(例如印度),因为基础设施、物流服务、技术等基本投入不足,中断的可能性很高。 因此,制造商往往为同一产品组拥有多个供应商,以减少对供应商的依赖。更多,我们发现,即使在经济衰退(2010-2013 年)之后,采购公司也更愿意拥有更大的供应基础。然而,在经济衰退后,他们以每年每家制造商 0.2 个供应商(相比于经济衰退前的 8.3 个)的年增长率增加了供应基础规模。本研究通过从新兴经济体的角度研究其与供应基础规模的关联,强调了破坏性事件(以经济衰退为代表)的重要性。JEL 代码:C1、C5、C8 通过从新兴经济体的角度研究其与供应基础规模的关联。JEL 代码:C1、C5、C8 通过从新兴经济体的角度研究其与供应基础规模的关联。JEL 代码:C1、C5、C8
更新日期:2020-10-15
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