A supply network governance framework: a case study of the South Australian mining industry

Abstract

Purpose The competitiveness of mining regions largely depends on the performance of the regional supply chains that provide services to mining companies. These local supply chains are often highly intertwined and represent a regional supply network for the industry. Individual companies often use supply chain strategies that are sub-optimal to overall supply network performance. To effectively respond to an uncertain business environment, policy-makers and supply chain participants would benefit by a governance framework that would allow to incentivise the formation of supply networks structures enabling effective operations. The purpose of this paper is to offer an empirically grounded conceptual framework based on Complex Adaptive Systems (CASs) governance principles, which links network governance mechanisms with supply network structure and operational performance to incentivise the formation of adaptive and resilient supply networks in the mining industry. Design/methodology/approach A mixed method research design and a case study of the South Australian mining sector were used to collect empirical data. Qualitative interviews and network analysis of the SA mining industry regional supply network structure were conducted. The relationships between network parameters were interpreted using CAS theory. Findings An empirically grounded conceptual framework based on CAS governance principles is developed. The case study revealed that supply chain strategies and governance mechanisms in the SA mining industry have led to the formation of a hierarchical, scale-free structure with insufficient horizontal connectivity which limits the adaptability, responsiveness and resilience of the regional supply network. Research limitations/implications The findings are drawn from a single case study. This limits generalisability of the findings and the proposed framework. Practical implications The proposed framework draws the attention of the policy-makers and supply chain participants towards the need for utilising CAS governance principles to facilitate the formation of adaptive, responsive and resilient regional supply networks in the mining industry. Originality value The proposed conceptual framework is an attempt to parameterise the governance of the regional supply networks in the mining industry.

A complex adaptive systems governance framework for regional supply networks

“…However, in general, the interview data from representatives of the SA METS confirm the collaborative nature of the relationships between suppliers and customers in the SA mining sector (Statsenko et al , 2018). The SA mining industry RSN acts as conduit for knowledge and information transfer within and between SA mining and related industries in the region.…”

“…However, research into the relationships between network governance and structure and its implications for network performance is limited in supply chain management (Pilbeam et al , 2012). There is a paucity of research that relates supply network governance to network structure and performance (Pilbeam et al , 2012; Statsenko et al , 2018).…”

“…Applying this view with the purpose of RSN optimisation, supply network structural parameters are the result of the governance applied, endogenous self-organisation mechanisms and the external environment – regional and global economy. The RSN performance, including effective resource allocation, incentives alignment and operational characteristics – responsiveness, resilience, adaptability and innovativeness – is a function of the network structure (Figure 1, Statsenko et al , 2018).…”

“…Thus, RSN performance, including effective resource allocation, incentives alignment and operational characteristics – responsiveness, resilience, adaptability and innovativeness – is a function of the network structure (Figure 1, Statsenko et al , 2018).…”

Investigating social factors and their impact on value co-creation in supply chain ecosystems

“…Especially, in the supply chain risk management (SCRM) related literature, value creation is a topic of “increased interest among researchers and practitioners” (p. 259) according to Fierro Hernandez and Haddud (2018). Despite SCRM, social norms define and influence supply chain relationships (Arroyo et al , 2018; Chaurasia, 2018; Fierro Hernandez and Haddud, 2018; Statsenko et al , 2018; Yildiz Çankaya, 2020).…”