Building Resilient Supply Chains to Natural Disasters

Firms may face internal or external risks. While internal risks can be managed with the firm's existing tangible or intangible resources, some of the external risks are not problems that firms can overcome with their own resources. When faced with these risks, firms can only try to minimize their losses. Natural disasters can be referred to as such external risks. This study examines the impact of earthquakes, a type of natural disaster, on firms and supply chains. Earthquakes affect not only the firm or the country directly affected by the disaster, but also all supply chains, which have become more complex and sophisticated due to globalization. In order to create resilient supply chains, the shares of global firms during the earthquake process are analyzed and recommendations are developed.