Data systems in supply chain resilience: moderated moderating effects of enterprise resource planning

Purpose Outsourcing and offshoring practices have introduced a high level of complexity into operations and supply chains, involving suppliers and manufacturers from various locations to deliver value to final customers within an integrated information-sharing system such as enterprise resource planning (ERP). Such supply chains have been facing more cyberattacks, a ubiquitous problem and danger to businesses worldwide. Therefore, the research objective addresses these research questions: “What is the role of complexity in building cyber-resilience in supply chains? What is the role of ERP in complex supply chains?” Design/methodology/approach This paper proposes a research model that is empirically tested along with robustness tests such as endogeneity. To provide empirical data, this paper focused on supply chain relationships as the unit of analysis. The sample is selected from the USA employee population with experience in operations management and information technologies. Findings The findings indicate that ERP systems assist supply chains in reducing the adverse effects of downstream complexity on the efficacy of information sharing within secure systems for creating cyber resilience. Moreover, theoretical development showed that the more complex the supply chains are, the harder it is to create rents. Practical implications The findings underscore the importance of implementing cybersecurity frameworks such as ISO 27001, as well as regular training to mitigate threats such as phishing and social engineering. Despite the initial costs, such investments are vital for minimizing potential losses from breaches, which are estimated to cost around $4m on average globally. Social implications This research reveals the social impacts of supply chain cyber resilience through ERP systems, which emphasize the protection of consumer data, job security and public confidence. Cyber resilience and ERP systems help shield against data breaches, preserving privacy, preventing job losses and maintaining trust between people and industrial sectors. Originality/value The contribution is to propose the moderated moderating role of ERP in cyber resilience. This paper investigates the interaction effects of ERP and downstream complexity on the relationship between information sharing and cyber resilience. Moreover, this paper develops the relational view to consider the influential impacts of complexity in creating rents.