Dynamic Capabilities and Cyber Resilience in Supply Chains management: Insights from Case Studies across Asia.

Abstract

Cyber incidents pose significant threats to supply chain (SC) operations by disrupting material, information, and financial flows and compromising the availability, integrity, and confidentiality of SC assets. While supply chain resilience (SCRES) has gained increasing attention, this study focuses on the capabilities required to build cyber resilience within supply chains (SCCR). Drawing on the dynamic capabilities (DC) perspective, the study explores how firms across Asia can develop resilience to cyber risks based on a nuanced understanding of SC cyber risk characteristics. This qualitative study is based on 79 in-depth interviews with managers from 28 firms across four supply chains operating in various Asian countries. Data were collected through semi-structured interviews and secondary sources and analyzed through the lens of the DC framework, emphasizing the processes of sensing, seizing, and transforming. The study identifies both general SC resilience capabilities and specific capabilities tailored to cyber risk resilience (SCCR). It reveals that SCRES capabilities must be realigned and complemented with SCCR-specific capabilities to address cyber risks effectively. Based on the findings, ten propositions for future research are presented. For practitioners in Asia, the study emphasizes the importance of collaboration among SC partners to address cyber threats, the integration of new SC partners, and the adopting of innovative approaches. The research highlights that cyber risks require distinct strategies compared to traditional SC risks. This empirical study advances the SC management literature by applying the dynamic capabilities framework to cyber risk resilience in Asian supply chains. It identifies specific DCs necessary for SCCR, provides practical insights for managers, and offers a rare perspective on SC cyber resilience through case studies in the Asian context.