Supply chain resilience in China's commercial aviation industry

Supply chain resilience in China's commercial aviation industry

China’s commercial aviation industry is facing profound challenges post COVID-19 particularly in meeting both rising demand for new aircraft and need for strategic supply chain sourcing. This trend has implications on the supply chain set-up, where resilience across the value-chain is a key capability to keep up with market demand. While literature discusses resilience in supply chains from a range of different perspectives, neither the aviation nor the China context has been adequately explored. Therefore, this research proposes to investigate this gap. It examines how and why resilience affects China’s aviation industry through a two-stage qualitative (indepth interview and case study) research methodology. In-depth interviews and case studies provide insights into the models of resilience identified and their relevance to this research. The resource-based view of the firm and dynamic capabilities theory (DCT) is used to provide the theoretical framework to explore how suppliers can prepare for resilience in its supply chain. As such, proposals to enhance resourcebased view will be made on how financial, tangible and intangible resources are affecting resilience, through access to capital, infrastructure and collaboration. Evidence will substantiate the applicability of theory, for instance by discussing the role of inventories.
Nine in-depth interviews were conducted with industry experts from China, followed by nine case studies involving 18 interviews. Theoretical contribution includes the validity of the conceptual model of resilience building by evidence from cases in China. The distinct advantages of China’s State-owned enterprises (SOEs) underscore their significant access to both financial resources and human capital. Their practical impact on business encompasses a detailed model of components of resilience that enhance adaptability, robustness, and transformability. Best practices of how resilience building was achieved through strategic partnership, technology and knowledge transfer was highlighted. Findings indicate that resilience varies among SOEs, private, and foreign enterprises in China due to differing strategies related to profitability, resource management, and customer partnerships. Moreover, it was found that proactive resilience planning improves a company's ability to handle unexpected challenges, but it requires financial investment and strategic management.

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