Abstract

Local disruptions can be propagated from one firm to another in a supply network (SN) and eventually influence the whole SN. Therefore, numerous studies on SN resilience considering the ripple effect have been reported recently. However, previous studies paid less attention to this phenomenon from a network structure perspective: if a firm is facing the risk of failure, then its partners may help it to mitigate the risk of failure by collaboration during the process of disruption propagation. Specifically, how SN structures (e.g. characterised by different scaling exponents) and other parameters (e.g. redundancy) influence the effectiveness of collaboration on improving SN resilience considering the ripple effect is not clear. Accordingly, we propose a ripple effect with collaboration (REC) model to consider the aforementioned phenomenon. We also present three new SN resilience metrics to evaluate SN resilience. Then, using both generated (by a novel SN generating model) and real-life SNs, we simulate the SN resilience considering REC under random and targeted disruptions. Our results demonstrate that the effectiveness of collaboration can be affected by SN structures and other parameters, and collaboration can even negatively affect SN resilience in some cases. We also summarise managerial implications and give future research directions.