Supply Chain Disruption, Resilience Capability, and Firm Survival in Medan's Palm Oil Industry Post-COVID-19

Authors

  • Dayat Firman Universitas Medan Area
  • Komar Yusuf Universitas Medan Area
  • Attariq Khuda Universitas Medan Area

DOI:

https://doi.org/10.59976/jebin.v1i3.224

Abstract

This study aims to examine the impact of supply chain disruption on firm survival in the palm oil industry in Medan following the COVID-19 pandemic. It also investigates the mediating role of resilience capability in mitigating the negative effects of disruptions on organizational sustainability. This research employs a mixed-methods approach using a sequential explanatory design. Quantitative data were collected from 196 palm oil companies in Medan and surrounding areas through structured questionnaires. The data were analyzed using structural equation modeling (SEM) to assess the relationships between variables. Additionally, qualitative insights were used to enrich the interpretation of the findings. Resilience capability was measured through four dimensions: adaptability, agility, robustness, and collaborative networking. The results indicate that supply chain disruption has a significant negative effect on firm survival. However, resilience capability plays a crucial mediating role in reducing this negative impact. Firms with higher levels of resilience are better able to maintain operational performance despite severe disruptions. Furthermore, factors such as technology adoption and firm size also influence a company’s ability to survive during crisis conditions. This study contributes to the supply chain management literature by integrating supply chain disruption and firm survival within the context of the palm oil industry in a developing country. It highlights the strategic importance of resilience capability as a mediating mechanism and provides empirical evidence from the post-pandemic period, offering practical implications for building more adaptive and resilient supply chains.

References

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Puspita Sari, D., & Miranda, M. (2023). Feasibility Analysis of Sumedang Tofu MSMEs Business with Its Development Strategy. Journal of Economics Business Industry, 1(1), 19–29. https://doi.org/10.59976/jebin.v1i1.9

Queiroz, M. M., Ivanov, D., Dolgui, A., & Wamba, S. F. (2020). Impacts of epidemic outbreaks on supply chains. International Journal of Production Economics, 229, 107763. https://doi.org/10.1016/j.ijpe.2020.107763

Rismawati, J., & Gultom, N. O. (2023). Quality Analysis of Health Center Service Management for Efforts to Improve Patient Satisfaction. Journal of Economics Business Industry, 1(2), 71–80.

Saberi, S., Kouhizadeh, M., Sarkis, J., & Shen, L. (2019). Blockchain technology and supply chain management. International Journal of Production Research, 57(7), 2117–2135. https://doi.org/10.1080/00207543.2018.1533261

Sakinah, I., Zahro, Z., & Andinia, A. (2023). Adaptation of Blue Ocean Strategy in Increasing Business Markets. Journal of Economics Business Industry, 1(2), 81–91.

Sari Lubis, S. (2023). Identify Financial Ratios to Measure The Company’s Financial Performance. Journal of Economics Business Industry, 1(1), 1–9. https://doi.org/10.59976/jebin.v1i1.7

Sharma, A., Adhikary, A., & Borah, S. B. (2020). COVID-19’s impact on supply chain decisions. Journal of Business Research, 117, 443–449. https://doi.org/10.1016/j.jbusres.2020.05.030

Sihotang, G. A., & Damiyati, F. A. (2023). Minimizing Fresh Fruit Bunches Inventory Costs Using Continuous Review System and Blanked Order System Methods. Journal of Economics Business Industry, 1(1), 32–42.

Singh, R., Kumar, R., & Kumar, P. (2020). Supply chain sustainability: Trends and challenges. Resources Policy, 68, 101692. https://doi.org/10.1016/j.resourpol.2020.101692

Tarigan, Z. J. H., Siagian, H., & Jie, F. (2021). Impact of internal integration on supply chain performance. Uncertain Supply Chain Management, 9(2), 331–338.

Tiwari, S., Wee, H. M., & Daryanto, Y. (2021). Big data analytics in supply chain management. International Journal of Logistics Management, 32(3), 1–26.

Wamba, S. F., Gunasekaran, A., Akter, S., Ren, S. J. F., Dubey, R., & Childe, S. J. (2020). Big data analytics and firm performance. International Journal of Production Economics, 165, 234–246.

Wieland, A. (2020). Dancing the supply chain: Toward transformative supply chain management. Journal of Supply Chain Management, 56(1), 58–73. https://doi.org/10.1111/jscm.12248

Yildiz Çankaya, S., & Sezen, B. (2019). Effects of green supply chain management practices. Journal of Cleaner Production, 229, 118–130. https://doi.org/10.1016/j.jclepro.2019.05.078

Zhang, M., Pawar, K. S., & Bhardwaj, S. (2020). Improving supply chain agility. International Journal of Operations & Production Management, 40(1), 123–145.

Ali, I., Nagalingam, S., & Gurd, B. (2020). Building resilience in supply chain: A systematic review and future research directions. International Journal of Production Economics, 229, 107761. https://doi.org/10.1016/j.ijpe.2020.107761

Alif Ramadhan, H. (2023). Determinants of Economic Value Addition of Industrial Tuna Fish Processors in the Sea Food Processing Sub-Chain in Malaysia. Journal of Economics Business Industry, 1(1), 40–46. https://doi.org/10.59976/jebin.v1i1.11

Bag, S., Gupta, S., Kumar, A., & Sivarajah, U. (2020). Role of institutional pressures and resources in the adoption of green supply chain management practices. International Journal of Production Research, 58(11), 3462–3480. https://doi.org/10.1080/00207543.2019.1630774

Brandon-Jones, E., Squire, B., Autry, C. W., & Petersen, K. J. (2021). A contingent resource-based perspective of supply chain resilience and robustness. International Journal of Operations & Production Management, 41(1), 74–102. https://doi.org/10.1108/IJOPM-06-2019-0503

Centobelli, P., Cerchione, R., & Ertz, M. (2020). Managing supply chain resilience: A framework for designing robust supply chains. Business Process Management Journal, 26(5), 1385–1405. https://doi.org/10.1108/BPMJ-02-2020-0062

Choi, T. M. (2021). Risk analysis in supply chain management with big data analytics. Journal of Operations Management, 67(1), 1–5. https://doi.org/10.1002/joom.1119

Chowdhury, P., Paul, S. K., Kaisar, S., & Moktadir, M. A. (2021). COVID-19 pandemic related supply chain studies: A systematic review. International Journal of Production Economics, 235, 108123. https://doi.org/10.1016/j.ijpe.2021.108123

Christopher, M. (2019). Logistics & supply chain management. Pearson.

Dolgui, A., Ivanov, D., & Sokolov, B. (2020). Ripple effect in the supply chain: An analysis and recent literature. International Journal of Production Research, 58(1), 1–13. https://doi.org/10.1080/00207543.2019.1685708

Dubey, R., Gunasekaran, A., Childe, S. J., Blome, C., & Papadopoulos, T. (2021). Big data analytics and artificial intelligence pathway to operational performance. Technological Forecasting and Social Change, 173, 121096. https://doi.org/10.1016/j.techfore.2021.121096

Earnshaw, K. (2023). Relationship Between Supply Chain Management and Competitor Intensity in The Food Business: A Structural Equation Model. Journal of Economics Business Industry, 1(2).

El Safira, G., Sari, Y., & Waluyo, D. (2023). Virgin Coconut Oil (VCO) Business Analysis in Terms of Economic Income. Journal of Economics Business Industry, 1(2), 56–62.

Flynn, B. B., Huo, B., & Zhao, X. (2019). The impact of supply chain integration on performance. Journal of Operations Management, 58, 1–14. https://doi.org/10.1016/j.jom.2018.08.001

Gustiari, R. (2023). Techno-Economic Analysis of Utilization of Tofu Production Liquid Waste into Liquid Organic Fertilizer Using Experimental Methods. Journal of Economics Business Industry, 1(1), 10–18.

Heizer, J., Render, B., & Munson, C. (2020). Operations management: Sustainability and supply chain management. Pearson.

Huo, B., Han, Z., & Prajogo, D. (2020). Antecedents and consequences of supply chain information integration. Supply Chain Management: An International Journal, 25(3), 237–252. https://doi.org/10.1108/SCM-09-2018-0333

Ivanov, D. (2020). Viable supply chain model. Annals of Operations Research.

Ivanov, D., & Das, A. (2020). Coronavirus (COVID-19) and supply chain resilience. International Journal of Production Research, 58(10), 2904–2915. https://doi.org/10.1080/00207543.2020.1750727

Kache, F., & Seuring, S. (2019). Challenges and opportunities of digital information in SCM. International Journal of Operations & Production Management, 39(1), 6–36. https://doi.org/10.1108/IJOPM-02-2018-0113

Khan, S. A. R., Yu, Z., & Golpîra, H. (2021). The impact of green supply chain practices on firm performance. Sustainability, 13(4), 1974. https://doi.org/10.3390/su13041974

Ohimain Ozumba, I. (2023). The Influence of Marketing Mix Strategy on Bread Customer Satisfaction in Nigerian Market. Journal of Economics Business Industry, 1(2), 47–55. https://doi.org/10.59976/jebin.v1i2.17

Pettit, T. J., Croxton, K. L., & Fiksel, J. (2019). The evolution of resilience in supply chain management. Journal of Business Logistics, 40(1), 56–65. https://doi.org/10.1111/jbl.12152

Prajogo, D., Oke, A., & Olhager, J. (2020). Supply chain integration and performance. International Journal of Operations & Production Management, 40(1), 1–23. https://doi.org/10.1108/IJOPM-03-2019-0180

Puspita Sari, D., & Miranda, M. (2023). Feasibility Analysis of Sumedang Tofu MSMEs Business with Its Development Strategy. Journal of Economics Business Industry, 1(1), 19–29. https://doi.org/10.59976/jebin.v1i1.9

Queiroz, M. M., Ivanov, D., Dolgui, A., & Wamba, S. F. (2020). Impacts of epidemic outbreaks on supply chains. International Journal of Production Economics, 229, 107763. https://doi.org/10.1016/j.ijpe.2020.107763

Rismawati, J., & Gultom, N. O. (2023). Quality Analysis of Health Center Service Management for Efforts to Improve Patient Satisfaction. Journal of Economics Business Industry, 1(2), 71–80.

Saberi, S., Kouhizadeh, M., Sarkis, J., & Shen, L. (2019). Blockchain technology and supply chain management. International Journal of Production Research, 57(7), 2117–2135. https://doi.org/10.1080/00207543.2018.1533261

Sakinah, I., Zahro, Z., & Andinia, A. (2023). Adaptation of Blue Ocean Strategy in Increasing Business Markets. Journal of Economics Business Industry, 1(2), 81–91.

Sari Lubis, S. (2023). Identify Financial Ratios to Measure The Company’s Financial Performance. Journal of Economics Business Industry, 1(1), 1–9. https://doi.org/10.59976/jebin.v1i1.7

Sharma, A., Adhikary, A., & Borah, S. B. (2020). COVID-19’s impact on supply chain decisions. Journal of Business Research, 117, 443–449. https://doi.org/10.1016/j.jbusres.2020.05.030

Sihotang, G. A., & Damiyati, F. A. (2023). Minimizing Fresh Fruit Bunches Inventory Costs Using Continuous Review System and Blanked Order System Methods. Journal of Economics Business Industry, 1(1), 32–42.

Singh, R., Kumar, R., & Kumar, P. (2020). Supply chain sustainability: Trends and challenges. Resources Policy, 68, 101692. https://doi.org/10.1016/j.resourpol.2020.101692

Tarigan, Z. J. H., Siagian, H., & Jie, F. (2021). Impact of internal integration on supply chain performance. Uncertain Supply Chain Management, 9(2), 331–338.

Tiwari, S., Wee, H. M., & Daryanto, Y. (2021). Big data analytics in supply chain management. International Journal of Logistics Management, 32(3), 1–26.

Wamba, S. F., Gunasekaran, A., Akter, S., Ren, S. J. F., Dubey, R., & Childe, S. J. (2020). Big data analytics and firm performance. International Journal of Production Economics, 165, 234–246.

Wieland, A. (2020). Dancing the supply chain: Toward transformative supply chain management. Journal of Supply Chain Management, 56(1), 58–73. https://doi.org/10.1111/jscm.12248

Yildiz Çankaya, S., & Sezen, B. (2019). Effects of green supply chain management practices. Journal of Cleaner Production, 229, 118–130. https://doi.org/10.1016/j.jclepro.2019.05.078

Zhang, M., Pawar, K. S., & Bhardwaj, S. (2020). Improving supply chain agility. International Journal of Operations & Production Management, 40(1), 123–145.

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Published

2024-03-29

How to Cite

Dayat Firman, Komar Yusuf, & Attariq Khuda. (2024). Supply Chain Disruption, Resilience Capability, and Firm Survival in Medan’s Palm Oil Industry Post-COVID-19. Journal of Economics Business Industry, 1(3), 137–147. https://doi.org/10.59976/jebin.v1i3.224

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