The Resilience of Supply Chain: The Case of Vietnamese Pharmaceutical Companies
Main Article Content
Abstract
The COVID-19 pandemic has highlighted the crucial importance of supply chain resilience, especially in pharmaceutical companies. The disruptions exposed vulnerabilities compounded by the industry's globalized and complex nature. In Vietnam, the pharmaceutical sector is vital, serving approximately 97.33 million people. Despite significant growth, the industry faces challenges like heavy reliance on imported drugs, which make up nearly half of total consumption. The pandemic further strained supply chains, causing shortages and price hikes due to demand spikes and logistical issues. This study explores the perceptions of Vietnamese pharmaceutical companies regarding their supply chain capabilities and competencies and their impact on resilience. Using a survey methodology, data was collected from 109 pharmaceutical companies in Vietnam through convenience sampling, considering company size, ownership, and types. The analysis involved descriptive statistics, Cronbach’s Alpha reliability testing, and multiple regression analysis. Finding reveal that "Information System Capabilities (ISC)" and "Supply Chain Management Strategies (SMS)" significantly and positively influence both the agility and robustness of supply chains. "Risk Management Capabilities (RMC)" positively and significantly affect robustness alone. The study emphasizes the need for strategic investments in technology and risk management to enhance supply chain resilience, allowing companies to effectively handle uncertainties and disruptions while maintaining operational excellence.
Keywords
Supply chain, supply chain management, resilience, pharmaceutical companies, Vietnam
Article Details
References
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risk and vulnerability in frequency space, International
Journal of Production Economics, vol. 108, iss. 1-2,
2007, pp. 291-301.
https://doi.org/10.1016/j.ijpe.2006.12.017
[3] A. P. Christoph, Supply chain resilience - influence of
supply chain capabilities and strategies on agility and
RO, M.Eng thesis, Sirindhorn International Institute of
Technology, Thammasat University, Pathum Thani,
Thailand, 2014.
[4] The World Bank, Current health expenditure (% of
GDP) - Thailand, Vietnam, 2021.
[5] GMPC Vietnam, Overview of the Vietnamese
pharmaceutical industry in 2023 and development
directions for pharmaceutical companies, 2024
[6] M. Christopher & H. Peck, Building the resilient
supply chain. International Journal of Logistics
Management, vol. 15, no. 2, Jul. 2004, pp. 1-13.
https://doi.org/10.1108/09574090410700275
[7] S. Chopra & P. Meindl, Supply Chain Management:
Strategy, Planning, and Operation, 6th ed., Boston,
USA, Pearson, 2016.
[8] S. Ponomarov & M. Holcomb, Understanding the
concept of supply chain resilience. The International
Journal of Logistics Management, vol. 20, no. 1,
May. 2009, pp. 124-143.
https://doi.org/10.1108/09574090910954873
[9] N. Hohenstein, E. Feisel, E. Hartmann & L. Giunipero,
Research on the phenomenon of supply chain
resilience: a systematic review and paths for further
investigation, International Journal of Physical
Distribution & Logistics Management, vol. 45, no. 1/2,
Mar. 2015, pp. 90-117.
https://doi.org/10.1108/IJPDLM-05-2013-0128
[10] I. Manuj, & J. Mentzer, Global supply chain risk
management strategies. International Journal of
Physical Distribution & Logistics Management,
vol. 38, no. 3, Apr. 2008, pp. 192-223.
https://doi.org/10.1108/09600030810866986
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relational competencies on supply chain resilience: A
relational view. International Journal of Physical
Distribution & Logistics Management, vol. 43, no. 4,
May. 2013, pp. 300-320.
https://doi.org/10.1108/IJPDLM-08-2012-0243
[12] S. Ponomarov, Antecedents and consequences of
supply chain resilience: a dynamic capabilities
perspective. Knoxville: University of Tennessee,
2012.
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reality? The moderating role of supply chain resilience
on disruption occurrence. Journal of Business
Logistics, vol. 31, iss. 2, 2010, pp. 1-20.
https://doi.org/10.1002/j.2158-1592.2010.tb00140.x
[14] H.N. Xuan et al., Supply Chain Risk, Integration, Risk
Resilience and Firm Performance in Global Supply
Chain: Evidence from Vietnam Pharmaceutical
Industry, Uncertain Supply Chain Management, vol. 9
Aug. 2021, pp. 779-796.
https://doi.org/10.5267/j.uscm.2021.8.010
[15] J. Mentzer, W. DeWitt, Defining supply chain
management. Journal of Business Logistics, vol. 22,
iss. 2, 2001, pp. 1-25.
https://doi.org/10.1002/j.2158-1592.2001.tb00001.x
[16] S. Min, J. Mentzer & R. Ladd, A market orientation in
supply chain management, Journal of the Academy of
Marketing Science, vol. 35, no. 4, Mar. 2007,
pp. 507-522.
https://doi.org/10.1007/s11747-007-0020-x
[17] M. Zhao, C. Droge & T. Stank, The effects of logistics
capabilities on firm performance: Customer-focused
versus information-focus capabilities. Journal of
Business Logistics, vol. 22, no. 2, 2001, pp. 91-107.
https://doi.org/10.1002/j.2158-1592.2001.tb00005.x
[18] O. Lavastre, A. Gunasekaran & A. Spalanzani, Supply
chain risk management in French companies, Decision
Support Systems, vol. 52, iss.4, Mar. 2012,
pp. 828-838.
https://doi.org/10.1016/j.dss.2011.11.017
[19] C. Tang, Robust strategies for mitigating supply chain
disruptions, International Journal of Logistics
Research and Applications, vol. 9, iss. 1, 2006,
pp. 33-45.
https://doi.org/10.1080/13675560500405584
[20] Z. Yang & et al,. Supply disruptions, asymmetric
information, and a backup production option,
Management Science, vol. 55, no. 2, Nov. 2008,
pp. 192-209.
https://doi.org/10.1287/mnsc.1080.0943
[21] C. Lin & T. Wang, Build-to-order supply chain
network design under supply and demand
uncertainties, Transportation Research, Part B,
Methodological, vol. 45, iss. 8, Sep. 2011,
pp. 1162-1176.
https://doi.org/10.1016/j.trb.2011.02.005