A theoretical model on how firms can leverage political resources to align with supply chain strategy for competitive advantage

Abstract

The success of a firm's supply chain strategy depends on resources in the political environment and the supply network in which it operates. If the political environment is not conducive to a firm's supply chain strategy, a firm can either change its supply chain strategy or seek a political environment that is more favorable to its supply chain. This paper examines this second alternative. The structure-conduct-performance (SCP) paradigm and the competitive dynamics literature are used to explore the relationships between political actions that leverage supply network resources, supply chain strategies, and firm performance. We extend a well-known typology of political actions from the strategic management literature and suggest that beyond influencing or complying with the political environment, firms may choose to moderate the political environment (circumvent or submit) or stay neutral (free ride). An integrated model is developed to explore the relationships between political actions and supply chain strategy, along with a series of propositions outlining how political actions can facilitate supply chain risk management strategies. Finally, suggestions are provided for future research.

From the editors: Introduction to the emerging discourse incubator on the topic of leveraging multiple types of resources within the supply network for competitive advantage

“…The Journal of Supply Chain Management's view on the need for research at the interface of supply chain management and public policy remains steadfast (e.g., Dobrzykowski, 2019;Fugate et al, 2019;Harland et al, 2019). We concur with authors such as Grover and Dresner (2022) and Darby et al (2020) that additional research is needed to explore how public policy at the national, regional, and local levels creates risks and opportunities for a firm's supply chain. For instance, future research could examine how the alignment of global, national, and local public policies impacts the firm's competitive behavior (e.g., Gundlach et al, 2019;Hasan et al, 2020;Tokar & Swink, 2019).…”

“…The third invited article is by Grover and Dresner (2022). They use the structure-conduct-performance (SCP) and competitive dynamics perspectives to theorize about the relationship between political strategies, supply chain risk management strategy, and firm competitive advantage.…”

“…In sum, there is a need for more knowledge about how supply network characteristics, internal structure and processes, and the public policy environment could influence a focal firm's competitive behavior and competitive advantage. To begin this discourse, supply chain, strategy, and organizational behavior scholars were invited to share their perspective on how supply network resources could impact the firm's ability to engage in competitive behavior with rival firms (Grover & Dresner, 2022;Hofer et al, 2022;Howe & Jin, 2022). As an example, Grover and Dresner (2022) theorize on the role of proactively shaping political and supply chain resources (e.g., lobbying in support of future regulations) to protect the firm's supply chain investments for competitive advantage purposes.…”

“…Because this EDI is interested in research on how the firm's competitive action repertoire (e.g., pricing actions, new product developments, and related types of actions) leverages supply network resources and the creation of competitive advantage, one possibility is the competitive dynamics perspective (Chen et al, 2021;Chen & Miller, 2012;Gnyawali et al, 2006). The competitive dynamics perspective has not received much attention from supply chain scholars even though this is a prominent subfield in strategy (Chen et al, 2021;Grimm & Smith, 1997) and is the dominant theory used by the authors of the invited papers that introduce this EDI (Grover & Dresner, 2022;Hofer et al, 2022;Howe & Jin, 2022).…”

“…To begin this discourse, supply chain, strategy, and organizational behavior scholars were invited to share their perspective on how supply network resources could impact the firm's ability to engage in competitive behavior with rival firms (Grover & Dresner, 2022;Hofer et al, 2022;Howe & Jin, 2022). As an example, Grover and Dresner (2022) theorize on the role of proactively shaping political and supply chain resources (e.g., lobbying in support of future regulations) to protect the firm's supply chain investments for competitive advantage purposes. Each of these teams of scholars provides a valuable roadmap for future research in this domain.…”