Catastrophic supply chain disruptions and supply network changes: A study of the 2011 Japanese earthquake from a supply network complexity view

Catastrophic supply chain disruptions can significantly damage the operational and financial performance of firms. While a growing body of literature on supply network structures has studied what influences supply networks’ vulnerability to supply chain disruptions and capability to recover from the disruptions, it remains unclear how supply network structures change after major supply chain disruptions. Using a natural experiment approach, this study investigates how firms’ ego supply network structures change after experiencing the catastrophic supply chain disruptions caused by the 2011 Tōhoku earthquake and tsunami in Japan. The results of the analysis suggest that compared to unaffected firms, firms affected by the disruptions have lower levels of supply network complexity after the disruptions. This study contributes to the literature on supply network structures and supply chain resilience by providing empirical evidence of structural changes in supply networks after catastrophic supply chain disruptions. The paper concludes with a reflection on why these changes might
be occurring and alerts firms to the challenges of managing complexity in their supply networks.