Mitigating the effect of risk conditions on supply disruptions: the role of manufacturing postponement enablers

While previous published studies have evaluated the drivers of supply disruptions, only a few have empirically investigated the role of manufacturing postponement enablers as mitigating practices. This work explores the complex interaction between supply disruptions (i.e. supplier failure, purchase unavailability), risk conditions (i.e. antecedents that positively influence the probability and severity of supply disruptions) and manufacturing postponement enablers (i.e. product and process modularity). Specifically, we aim at understanding ‘when’ manufacturing postponement enablers should be adopted the most and ‘if’ their adoption can fully mitigate the effect risk conditions exert on supply disruptions’ probability and severity. To achieve our objective, we developed a conceptual model, and we tested it using survey data from 54 Italian manufacturing companies. The results show that supply market difficulty and technological uncertainty imply a higher probability and severity of disruptions associated with supplier failure and purchase unavailability. Most importantly, we provide evidence of the role played by product and process modularity in fully mitigating the effect of technological uncertainty on supply disruptions.