Date of Graduation

8-2022

Document Type

Dissertation

Degree Name

Doctor of Philosophy in Business Administration (PhD)

Degree Level

Graduate

Department

Supply Chain Management

Advisor/Mentor

Adriana Rossiter Hofer

Committee Member

John Aloysius

Second Committee Member

Iana Shaheen

Third Committee Member

Simone Theresa Peinkofer

Keywords

disaster, disclosure, experimental design, scarcity, secondary data, stockouts

Abstract

Studies have consistently shown that scarcity plays a significant role in shaping decision making. Under conditions of scarcity, individuals tend to behave impulsively, and firms are inclined to redefine their set of priorities and strategies, ultimately impacting their performance. Considering the scant investigation of the mechanisms and effects of scarcity in the supply chain management literature, this dissertation aimed to investigate the roles of scarcity in shaping consumer behavior and firm strategy in three essays.

The first essay investigated the effect of post-stockout scarcity disclosures on consumer responses to stockouts through the lens of product scarcity and signaling theory. The results of the experimental analysis indicate that post-stockout disclosures increase consumer perceived scarcity, reduce consumer satisfaction with the stockout situation, yet increase consumer purchase intention. However, the results of a time-effect analysis show that consumers' perceived scarcity and purchase intention decrease over time when stockouts persist. These results indicate that effectively communicating the reasons for the stockout, as well as actions being undertaken for replenishing the product can serve as a powerful tool to retain customers exposed to stockouts.

The second essay explored the role of retail product rationing (limit buys) in preventing stockpiling of essential products at retail stores during natural disasters through the lens of regret theory and anchoring effect. Results of an experimental investigation through manipulation of the number of items a consumer can buy and the presence/absence of disclosures highlighting social norms – or nudges, indicate that when consumers' needs were less than the retailer's set purchase limit, the purchase limit increased consumer stockpiling propensity. Additionally, though no significant effect of social nudges in the presence of a purchase quantity limit was found, social nudges significantly reduced consumer stockpiling propensity when no limits were placed.

The third essay studied the effect of a firm's financial and operational slack on its green supply chain management (GSCM) performance by using the natural resource-based view and conceptualizing slack as a capability needed by a firm to reach its green supply chain goals. Results of a random effect model analysis indicate that the firm's absorbed slack and unborrowed slack (financial slacks), and capacity slack (operational slack) have a positive effect with diminishing returns on its GSCM performance. In contrast, inventory slack (a different kind of operational slack) has a negative effect with diminishing returns on a firm's GSCM performance. Moreover, we found that the firm's operating environment scarcity positively moderates the relationship between inventory slack and absorbed slack on GSCM performances GSCM performance. Environmental scarcity promotes a more efficient use of slack resources in the pursuit of green SCM efforts.

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