The Domino effect of risks on supply chain performance in disruptive times

Given the recent global disruptions such as the pandemic and the geo-political conflicts, there is a growing interest in how risks propagate within supply chains, influencing the structural design and planning. An empirical study involving 207 Vietnamese construction enterprises assessed the significance of the Domino effect, where multiple risks interact and amplify one another’s impact. The research utilized a novel comparative model based on the individual effects of each risk on SC performance to validate the proposed theoretical model of the Domino effect. The model explains 66% of the variance in SC performance, surpassing the comparative model and prior research. The study revealed that the Domino effect triggers disruptions that cascade downstream and affect SC performance, leading to supply instability, operational challenges, innovation inefficiency, and loss of market share, etc. The research leverages empirical evidence from the pandemic and geopolitical conflicts to enhance understanding of the SC structural dynamics during turbulent times. Finally, it provides strategic risk mitigation approaches to enhance resilience in the Vietnamese construction industry and ensure robust preparedness for future disruptions.