Exploring resilience in the downstream supply chain of the semiconductor industry: The mediating roles of risk mitigation, process simplification, and flexibility

Abstract

This study enhances knowledge of the indicators of supply chain resilience (SCR) within the downstream supply chain of the semiconductor industry. The focus is on risk mitigation, process simplification and flexibility. Despite the complexity of global supply chains, how these factors interact to enhance SCR in the semiconductor sector remains underexplored. SCR enables downstream parties in the semiconductor industry to recover and maintain operations after disruption. Previous studies have overlooked (1) the determinants of process simplification, risk mitigation competency, and supply chain flexibility within the semiconductor industry and (2) the mediating roles of those three factors in achieving SCR. This study surveys 226 managers in the downstream semiconductor industry in China and analyzes the data using SmartPLS 4.0, a tool for Partial Least Squares Structural Equation Modeling (PLS-SEM). The results underscore that efficient and flexible information systems significantly improve SCR through process simplification, while a risk management culture and an orientation to risk mitigation also significantly enhance SCR through risk mitigation competency. Process simplification and risk mitigation competency also significantly impact SCR within the sector through supply chain flexibility. These findings offer actionable insights, highlighting the need for targeted investments in information systems and risk management to strengthen supply chain resilience in China's semiconductor industry. Knowledge of the important mediating roles of risk mitigation, process simplification, and flexibility is essential for strategic investment in information systems, process optimization, and aligning technological infrastructure with strategic goals.