The Delicate Equilibrium: Unveiling the Curvilinear Nexus Between Supply Concentration and Organizational Resilience

Abstract

The ability of organizations to remain resilient in the face of supply chain disruptions has been severely tested due to their increased frequency and impact. This study leverages the adaptive cycle framework to investigate the intricate dynamics between supply concentration and organizational resilience. We unveil a paradox where, up to a critical threshold, supply concentration fortifies resilience through tight‐knit buyer–supplier relationships and a bolstered resource base. Yet, surpassing this tipping point precipitates a rigidity trap, eroding the resilience fabric of organizations. Additionally, we scrutinize the nuanced roles of three dimensions of entrepreneurial orientation – proactiveness, innovativeness and risk‐taking – in shaping this complex interplay. We test our hypotheses using both secondary and primary data collected from Chinese firms, employing ordinary least‐squares regression and survival analysis. The results show that an inverted U‐shaped relationship emerges between supply concentration and organizational resilience. Furthermore, our research generally confirms the conjectured moderating influences of entrepreneurial orientation dimensions, enriching our understanding of how they calibrate the balance between concentration benefits and vulnerabilities. This study offers a new perspective on the implications of supply concentration for organizational resilience and contributes to the intersection of supply chain management, organizational resilience and entrepreneurship.