Dealing with GVC Disruptions in Light of the Pandemic - A multiple case study of the European furniture industry

Abstract

The Covid-19 pandemic has affected supply chains across different countries and industries. Within this thesis we investigate how European furniture companies are dealing with GVC disruptions caused by the pandemic. Since the phenomenon is unprecedented, there is a lack of research available thus far. We draw on existing supply chain risk mitigation strategies and divide them into five different themes: diversify supply network, decrease a GVC’s complexity, re-shore, manage inventory and influence demand. In addition, a possible correlation between GVC governance types and the success of a company during the pandemic is investigated. A multiple case study approach is used to identify three main findings: 1) the companies use very similar risk mitigation strategies despite being very different in terms of size, price segment, business model, etc. - the most popular theme is diversify the supply network whilst re-shoring is the least popular; 2) supply chain risk mitigation isn’t a major priority for the companies, with a lack of responsibility allocation and other motives apart from risk mitigation driving strategy choices; and 3) the GVC governance type couldn’t be found to influence the success of a company during the pandemic. In terms of a company’s success, the determining factors rather seem to be the business model, i.e. e-commerce or brick&mortar sales, and country-specific Covid-19 restrictions like lockdowns.