Reimagining global food value chains through effective resilience to COVID-19 shocks and similar future events: A dynamic capability perspective

Imran Ali* (Corresponding Author), Ahmad Arslan, Maruf Chowdhury, Zaheer Khan, Shlomo Y. Tarba

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

The restructuring of global value/supply chains gained increasing attention as the unprecedented COVID-19 echoed around the world. Yet, the COVID-19 related theory-driven, large scale quantitative, and empirical studies are relatively scarce. This study advances the extant literature by empirically investigating how do firms in the global food value chains (GFVCs) re-imagine their businesses structure in response to the COVID-19—becoming more resilient and competitive to the current pandemic and similar future events. We leverage a unique data of 231 senior managers of the Australian GFVCs and examine their firms’ response strategies. Drawing upon key insights from the dynamic capability view, we find that GFVCs’ competitiveness is achieved when exposure to COVID-19 shocks elicits dynamic capabilities—readiness, response, recovery—and these capabilities work jointly and sequentially to cultivate resilience. A key finding of this study is that firms with domestic plus global value chain partners are more resilient than those having only global business partners. This finding implies that excessive reliance on offshoring sometimes becomes lethal, especially amid unexpected and prolonged global shocks and, therefore, companies should strike a balance between domestic and global business partners to remain competitive. These findings offer important contributions to theory, practice, and UN sustainable development goals.
Original languageEnglish
Pages (from-to)1-12
Number of pages12
JournalJournal of Business Research
Volume141
Early online date10 Dec 2021
DOIs
Publication statusE-pub ahead of print - 10 Dec 2021

Keywords

  • COVID-19
  • Global value chains
  • Resilience
  • Competitiveness
  • Dynamic capabilities
  • Food industry

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