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HOW DO SUPPLY CHAIN NETWORKS AFFECT THE RESILIENCE OF FIRMS TO NATURAL DISASTERS? EVIDENCE FROM THE GREAT EAST JAPAN EARTHQUAKE
Author(s) -
Todo Yasuyuki,
Nakajima Kentaro,
Matous Petr
Publication year - 2015
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/jors.12119
Subject(s) - affect (linguistics) , vulnerability (computing) , supply chain , natural disaster , economies of agglomeration , business , industrial organization , psychological resilience , resilience (materials science) , production (economics) , economic geography , economics , microeconomics , marketing , geography , computer science , physics , meteorology , thermodynamics , psychology , philosophy , linguistics , computer security , psychotherapist
This paper uses firm‐level data to examine how supply chain networks affected the recovery of firms from the Great East Japan Earthquake. Extensive supply chains can negatively affect recovery through higher vulnerability to network disruption and positively through support from trading partners, easier search for new partners, and general benefits of agglomeration. Our results indicate that networks with firms outside of the impacted area contributed to the earlier resumption of production, whereas networks within the region contributed to sales recovery in the medium term. The results suggest that the positive effects of supply chains typically exceed the negative effects.