Theoretical perspectives on the coordination of supply chains

Abstract

Supply-chain coordination relies on the availability of prompt and accurate information that is visible to all actors in the supply chain. However, new demands on the supply-chain system require changes to information flow and exchange. We undertake a case study of three automotive supply chains that face such new demands resulting from the introduction of an order-driven supply-chain strategy. We use our case study findings to evaluate the applicability of three different theoretical lenses on the multi-faceted interactions between information, physical flow, and the complex rationales driving supply-chain evolution: the resource-based view (RBV), the concept of complex adaptive systems (CAS), and adaptive structuration theory (AST). We find that each theory has a separate realm of applicability and while complimentary in nature, provides distinct insight on the structural shift in the supply-chain system. More specifically, we find that AST, a theory prominent in the social sciences, provides novel insights to supply-chain research at the firm level, particularly with respect to the difficulties in using IT systems to drive systemic change. It complements both the system-level perspective offered by the complex adaptive systems theory, as well as the concept of dynamic capabilities originating in the resourced-based view. The paper concludes with wider implications for future research in supply and value chain management. # Coordination across tiers in the systemManufacturing and logistics operations are increasingly driven by customer needs rather than forecasts, increasing the importance of demand and inventory information visibility across the supply chain (Gunasekaran, 2005). However, supply chains are complex systems, and the assumption that organizations across tiers in the supply chain interact and behave as a unified entity with a common purpose is often violated (Choi et al., 2001). As a result, there is a great interest in the operations management (OM) literature in the coordinating mechanisms and the associated information technology (IT) systems that facilitate supply-chain integration and coordination, especially with respect to control and connectivity (Mukhopadhyay et al., 1997;Lee et al., 2000;Ye and Farley, 2006). At the same time, researchers in the supply-chain arena have noted the importance of considering cultural, organizational, and path dependence challenges in attaining IT system shifts, such as those needed to bring about customer responsiveness (Choi and Liker, 2002;Lewis and Suchan, 2003).We undertake a qualitative exploration of the IT and information challenges associated with moving to a customer-driven order-to-delivery model in three

Implementing sustainability in multi-tier supply chains: Strategies and contingencies in managing sub-suppliers

“…Although there is common agreement that MSCs are better characterized as "networks" with vertical and horizontal linkages among actors (Choi & Hong 2002, Holweg & Pil 2008, there are still considerable methodological challenges to overcome to consider the full complexity of real-life supply chains. Nevertheless, the simplified operationalization of the supply chain enables us to gain a deeper understanding with regard to our theoretical interest (i.e., contingency variables of buying firms' strategies of managing sustainability in MSCs), but the application of additional methods, such as social network analysis, is desirable.…”

Relationships between internal and external information systems integration, cost and quality performance, and firm profitability

“…The resource-based view (RBV) of firms focuses on how organizations derive value through the strategic application of their resources (Barney, 1991;Amit and Schoemaker, 1993;Peteraf, 1993;Wade and Hulland, 2004;Holweg and Pil, 2008). A central tenet is that organizations create competitive advantages through the strategic deployment of their resources (Das and Teng, 2000).…”

Effects of Path Dependence on Capabilities in Captive Global Value Chains

“…When more than one company is engaged in a supply chain relationship, there is mutual path dependence, generally when one of them owns a specific technology or asset. This may cause lock-ins throughout the entire supply chain (Holweg & Pil, 2008). Therefore, the governance of a GVC is subject to influences from several different organizational histories.…”