From supply delay to operational delay: evidence from small business clusters during the COVID-19 pandemic

Purpose – The purpose of this study is to examine how supply delay during major crises, such as the COVID-19 pandemic, affects small businesses' performance within geographic clusters, with a focus on operational delay. Drawing on resource dependence theory, and supplementing it with dynamic capabilities theory, we construct a cluster-level supply chain framework that incorporates both systematic disturbance (supply delay) and contextual factors (pre-crisis dynamism and munificence).
Design/methodology/approach – Our analysis utilizes data of 327 geographic clusters from the US Census Bureau's Small Business Pulse Survey (SBPS) spanning August 9, 2020, to July 18, 2021. We analyze the data using mixed linear models.
Findings – The findings reveal a curvilinear relationship between the proportion of firms experiencing supply delay and those facing operational delay, indicating escalating marginal impacts. Additionally, the characteristics of clusters' pre-crisis environments, including growth-based dynamism and munificence, moderate the relationship between supply delay and operational delay.
Originality/value – The study contributes to supply disruption literature by uncovering how supply delay escalates into operational delay at the geographic cluster level.
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