Society has been susceptible to man-made and natural catastrophic events since the beginning of time. A few of the more notable natural disasters include the Antioch earthquake of AD 526, the 1881 Haiphong typhoon, and the more recent 2004 Indian Ocean earthquake and tsunami. Man-made disasters include the great depression, the great credit crisis of 2008, and of course climate change. Many scientists believe we have begun to surpass planetary boundaries on climate change (Hoffman and Jennings, 2019; Gillins & Hagan-Lawson, 2014; Rockstrom et al., 2009), which may lead to periodic flocks of black swan events represented by an increase in the number of natural disasters – e.g., fires, floods, tsunamis, pandemics, etc. Effective organizational responses to calamities with worldwide consequences are paramount. For events such as the COVID-19 pandemic, which have triggered isolation measures and taxed the efficacy of supply chains across countries, we recommend private and public organizations to engage in the real options exercise of building small webs of “essential” supply chain nodes on low population density areas to:<br>continually serve these low population density areas during regular times, while ensuring sufficient slack capacity to maintain a state’s economy even if isolation measures are required.
|Publisher||Website: Organizations and the Natural Environment: A Division of AOM|
|State||Published - Apr 21 2020|