More or less: The impact of suppliers' locations on the recovery from the COVID‐19 pandemic

Abstract This paper tests how quickly firms recover from the shock caused by the COVID‐19 pandemic under different sourcing strategies. Our findings indicate that firms with geographically concentrated suppliers experience slower recovery compared to those with geographically dispersed suppliers following the outbreak of the COVID‐19 pandemic. Further analysis also reveals that firms with geographically concentrated suppliers recover more rapidly if their suppliers are less affected by the COVID‐19 pandemic, if they maintain long‐term supplier relationships, or if they hold higher levels of cash reserves.