From Attack to Adaptation: A Case Study of Capabilities Driving Digital Supply Chain Recovery

The number and variety of cyber threats have increased massively in recent times, challenging organizations and supply chains across all industries and sizes. This concerning development highlights the need for cybersecurity in our hyperconnected world and is further accelerated by the COVID-19 pandemic, geopolitical conflicts, and the implementation of Industry 4.0 technologies. While preventive measures can increase the robustness of the respective organizations and supply chains, cyber-attacks cannot always be prevented. The ability to recover quickly from these new threats becomes critical in the face of digital disruption. In this paper, we conduct a case study that provides in-depth experiences on how one company recovered its disrupted digital supply chain after a severe ransomware attack. We include the perspectives of supply chain partners and describe the whole recovery process of the affected company. The findings are presented along the four phases of resilience (readiness, response, recovery, and growth). Using the dynamic capabilities view and the relational view as theoretical underpinnings, we derive intra- and inter-firm capabilities that contributed to the recovery process and develop eight propositions. In this regard, we highlight not only the role of technical measures but also organizational and social capabilities in the recovery process. Our paper aims to complement and extend previous research with a novel approach and to provide several managerial contributions.