Open Access

Simon Kron, Carsten Reuter

• This study investigates the transposition of herding—a phenomenon traditionally studied in the context of asset management—into supply chain management (SCM) during the COVID-19 pandemic. Herding, defined as the tendency of decision-makers to imitate others’ actions while disregarding private information, frequently emerges in uncertain and volatile environments (Choi & Skiba, 2015). The research addresses the core question: “To what extent can the phenomenon of herding typically observed in asset management be transposed to SCM in the context of the COVID-19 pandemic?” The pandemic created a perfect storm of conditions conducive to herding behavior: extreme uncertainty, asymmetric information, low-quality data, and intense decision-making pressure (Bikhchandani & Sharma, 2000). These conditions, coupled with the unparalleled disruption to global supply chains, necessitated swift strategic decision-making among SCM executives. This study utilizes a qualitative methodology, including semi-structured interviews with top-level supply chain executives in the European automotive industry, to examine whether these conditions fostered behaviors analogous to herding.