Inherently irrational: exploring the role of behavioural economics and organisational culture in food supply chain disruption management decisions

Understanding human behaviour in supply chain disruption management (SCDM) requires moving beyond purely rational models. While traditional decision‑making frameworks focus on empirical factors, they often overlook the role of behavioural economics and organizational culture in shaping responses to...

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Bibliographic Details
Main Authors: Chase Smith, Hajar Fatorachian
Format: Article
Language:English
Published: Taylor & Francis Group 2025-12-01
Series:Cogent Business & Management
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Online Access:https://www.tandfonline.com/doi/10.1080/23311975.2025.2463566
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Summary:Understanding human behaviour in supply chain disruption management (SCDM) requires moving beyond purely rational models. While traditional decision‑making frameworks focus on empirical factors, they often overlook the role of behavioural economics and organizational culture in shaping responses to crises. This study examines how supply chain managers navigated risks and cultural shifts during the COVID‑19 pandemic, offering insights into the interplay between personal risk values, cultural cohesion, and SCDM risk levels. Using a retrospective approach, the study gathered data from 21 supply chain managers in the fast‑moving consumer goods (FMCG) and food supply chains. Questionnaires captured their attitudes towards risk, decision‑making patterns, and organizational cultural shifts before, during, and after the pandemic. Descriptive statistical analyses revealed that SCDM risk levels peaked at the height of the crisis, while cultural cohesion and personal risk values declined. Interestingly, the relationship between cultural cohesion and personal risk value intensified during the pandemic and continued to strengthen post‑pandemic. A similar trend was observed between personal risk value and SCDM risk levels, which became more pronounced over time. However, the link between cultural cohesion and SCDM risk level was strongest during the crisis but faded in pre‑ and post‑pandemic periods. These findings contribute to the growing field of behavioural operations by demonstrating the significance of psychological and cultural factors in crisis decision‑making. They underscore the need for supply chain strategies that integrate behavioural insights, recognizing that human responses to disruption are shaped by more than just rational calculations. By acknowledging the evolving dynamics of risk perception and cultural adaptation, organizations can develop more resilient and human‑centric approaches to supply chain management in times of crisis.
ISSN:2331-1975