Supply chain disruption and its impact on MNCs business models. - A Case study of an automotive company facing semiconductor shortage.

Abstract

In the interconnected world we are living in, MNCs have their supply chains located all over the globe. This implies an increased risk for disruptions within the supply chain which impacts rapidly all the parts involved in it. It is therefore crucial for organizations to manage their risks in order to mitigate the consequences of disruptions. This study hereby studies the impact on the supply chain of a global disruption that extends during a long period of time. To gain a deeper understanding of the perspective of automotive manufacturers toward a global disruption and its impact on the supply chain, a case study was conducted with the participation of one car manufacturer located in Gothenburg. The study was conducted on site at the company's headquarters enriched with internal information from the case company with multiple observations; taking part in meetings and to other relevant documents; but also, through a number of interviews with a semi-structured format with managers of departments daily dealing with disruption issues. The main findings of this study are that management in the supply chain done upstream permits to mitigate upcoming disruptions. Regarding the impact of disruption in the supply chain on business models, we notice mutual readjustments from the actors of the supply chain in order to meet future goals of the company in their business model. This study contributes to existing knowledge by treating the perspective of a global disruption that extends during a long period of time and by studying the management of risks and of the actual supply chain during a global disruption.