New lenses on managing demand volatility

This dissertation investigates how firms manage demand volatility through the lens of finance and operations, with a focus on the manufacturing sector. Demand volatility arises from a combination of financial, operational, and macroeconomic factors, and has consequences not only for firm performance but also for labor markets, innovation, and supply chain stability. This dissertation contributes to a growing literature at the intersection of operations, finance and public economics by providing empirical evidence on how firms respond to volatility and what technology and policy levers should be exploited to address the demand volatility issue. The dissertation focus across three domains of contemporary importance: outsourcing, blockchain adoption, and environmental regulation. A synopsis of the three chapters follows. The first chapter examines global sourcing as a dual-purpose strategy: firms leverage offshore production not only to minimize variable costs but also to hedge against domestic demand volatility, particularly in periods without tariff rate uncertainty. The second chapter investigates the role of blockchain adoption in mitigating bullwhip effects by enhancing visibility and synchronization across supply chain layers, while also accelerating operational and financial cycles. The third chapter evaluates how firms adjust their capital structure in response to investment-heavy environmental regulations, with an emphasis on how liquidity constraints shape financing choices under policy-induced cash flow pressures. Together, the findings contribute to an emerging literature at the intersection of operations and finance by identifying mechanisms through which firms adapt to volatility and by highlighting the role of institutional and technological enablers in shaping those responses.

Name thesis:degree_name

Ph.D.

Level thesis:degree_level

Dissertation

Discipline thesis:degree_discipline

Business Administration

Grantor

University of Illinois Urbana-Champaign

Year dc:date

2025

Author dc:creator

• Qiu, Shi

Contributors dc:contributor

• Seshadri, Sridhar
• Mukherjee, Ujjal
• Osadchiy, Nikolay
• Subramanyam, Ramanath

• Demand Volatility
• Systematic Risk
• Blockchain
• Operations And Finance
• Empirical

Statement dc:rights

• Copyright 2025 Shi Qiu

Language dc:language

en, eng

Handle dc:identifier

https://hdl.handle.net/2142/130172

OAI record oai:identifier

https://www.ideals.illinois.edu/oai-pmh?verb=GetRecord&metadataPrefix=etdms&identifier=oai%3Awww.ideals.illinois.edu%3A2142%2F130172