This paper explores the concept of GVC resilience. We offer a more nuanced view of how GVCs operate in a disruptive environment by applying the notion of complex adaptive systems (CAS) to our study of GVC resilience. We furthermore uncover trade-offs of GVC resilience, a topic that has otherwise received limited attention in the existing literature. We find that high levels of resilience, associated with close collaboration with long-term GVC partners, tight routines, and a risk-averse company culture, can hinder learning, exploration, and innovation. Consequently, we argue that GVC resilience should be conceptualized as a combination of robustness - the degree of steadiness in performance, and adaptability - the pace of recovery. Robustness, although advantageous for short term performance under disruptive circumstances, can nonetheless hinder exploration and impede long-term performance. Adaptability, however, enables firms to grow beyond the pre-disruption performance. This advantage of adaptability corresponds to the far-from equilibrium state of CAS theory which holds that systems that are forced to explore their range of possibilities tend to develop more diverse structures and novel patterns of connections. We investigate this mechanism in a GVC context and conduct a multi case study, focusing on three carmakers and the automotive industry, which is particularly relevant due to its complex GVCs and recent challenges like the semiconductor shortage and the COVID-19 pandemic.
