Contingency plan

Abstract: An increasing volume of business activity appears to be occurring via alliances or other interfirm arrangements in which complex contracts are featured, yet there has been relatively little study of contract design in the strategy or management literatures. The economics literature on contracting has been extensive, but it has been less concerned with learning and evolution---phenomena in which strategy and organization scholars are deeply interested. In this paper, we investigate the relationship between two types of contractual provisions that are important in high-technology contracts, or contracts for which environmental uncertainty or technological complexity are significant, namely, contingency planning and task description. Previous research suggests that contracts can vary significantly in the degree of detail with which such key provisions are written, and that they are each subject to learning. In this paper, we find evidence from a sample of 386 contracts that contingency planning and task description behave as complements in contractual design. We argue that this complementarity reflects patterns of learning to contract. We also find that repeated exchange between two firms leads to greater effort at contingency planning in subsequent contracts, a finding that is also consistent with learning effects, but not with frequently made claims that contracts and trust are substitutes.

Abstract: Through five systematic, large-scale mail surveys conducted since 1993, the Disaster Research Center has obtained data on hazard awareness, preparedness, disaster impacts, and short- and long-term recovery among 5,000 private-sector firms in communities across the United States (Memphis/Shelby County, Tenn.; Des Moines, Iowa; Los Angeles, Calif.; Santa Cruz County, Calif.; and South Dade County, Fla.). This paper summarizes findings from those studies in three major areas: (1) factors influencing business disaster preparedness; (2) disaster-related sources of business disruption and financial loss; and (3) factors that affect the ability of businesses to recover following major disaster events. Implications of the research for business contingency planning and business disaster management are discussed.

Abstract: Purpose – The purpose of this paper is to propose a comprehensive and coherent approach for managing risks in supply chains.Design/methodology/approach – Building on Tummala et al.'s Risk Management Process (RMP), this paper develops a structured and ready‐to‐use approach for managers to assess and manage risks in supply chains.Findings – Supply chain risks can be managed more effectively when applying the Supply Chain Risk Management Process (SCRMP). The structured approach can be divided into the phases of risk identification, risk measurement and risk assessment; risk evaluation, and risk mitigation and contingency plans; and risk control and monitoring via data management systems. Specific techniques for conducting this process are suggested.Originality/value – While supply chain risk management is an emerging and important topic in our dynamic and interconnected world, conceptual frameworks providing a clear meaning and normative guidance are scarce (Manuj and Mentzer, 2008). This paper presents such...