This paper puts forth a model of supply chain complexity and empirically tests it using plant‐level data from 209 plants across seven countries. The results show that upstream complexity, internal manufacturing complexity, and downstream complexity all have a negative impact on manufacturing plant performance. Furthermore, supply chain characteristics that drive dynamic complexity are shown to have a greater impact on performance than those that drive only detail complexity. In addition to providing a definition and empirical test of supply chain complexity, the study serves to link the systems complexity literature to the prescriptions found in the flexibility and lean production literatures. Finally, this research establishes a base from which to extend previous work linking operations strategy to organization design [Flynn, B.B., Flynn, E.J., 1999. Information‐processing alternatives for coping with manufacturing environment complexity. Decision Sciences 30 (4), 1021–1052].
Configuration models have generated a great deal of interest in the business strategy area, as witnessed by a recent Ž. special issue in The Academy of Management Journal Meyer et al., 1993 . Despite this, there has been no effort to examine the current state or future role of configurational research in the manufacturing strategy area. This paper attempts to fill this gap. The first half positions configurations as a unique way of studying strategic fit issues. The second half of the paper examines the current state of configurational research in the manufacturing strategy area. We compare and contrast existing typologies and taxonomies, identify trends, and highlight possible gaps in the literature. Finally, we discuss how configuration models can play an important role in the study of dynamic manufacturing issues; specifically, the development, implementation, and change of manufacturing strategies. q
Purpose Existing works in the supply chain complexity area have either focused on the overall behavior of multi-firm complex adaptive systems or on listing specific tools and techniques that business units (BUs) can use to manage supply chain complexity but without providing a thorough discussion about when and why they should be deployed. This research aims to address this gap by developing a conceptually sound model, based on the literature, regarding how an individual BU should reduce versus absorb supply chain complexity. Design/methodology/approach This research synthesizes the supply chain complexity and organizational design literature to present a conceptual model of how a BU should respond to supply chain complexity. The authors illustrate the model through a longitudinal case study analysis of a packaged foods manufacturer. Findings Regardless of its type or origin, supply chain complexity can arise because of the strategic business requirements of the BU (strategic) or because of suboptimal business practices (dysfunctional complexity). Consistent with the proposed conceptual model, the illustrative case study showed that a firm must first distinguish between strategic and dysfunctional drivers prior to choosing an organizational response. Furthermore, it was found that efforts to address supply chain complexity can reveal other system weaknesses that lie dormant until the system is stressed. Research limitations/implications The case study provides empirical support for the literature-derived conceptual model. Nevertheless, any findings derived from a single, in-depth case study require further research to produce generalizable results. Practical implications The conceptual model presented here provides a more granular view of supply chain complexity and how an individual BU should respond, than what can be found in the existing literature. The model recognizes that an individual BU can simultaneously face both strategic and dysfunctional complexity drivers, each requiring a different organizational response. Originality/value There are no other research works that have synthesized the supply chain complexity and organizational design literature to present a conceptual model of how an individual BU should respond to supply chain complexity. As such, this paper improves the understanding of supply chain complexity effects and provides a basis for future research, as well as guidance for BUs facing complexity challenges.
Purpose The purpose of this paper is to examine the nature of supply chain complexity and extend this with literature developed within the project domain. The authors use the lens of ambidexterity (the ability both to exploit and explore) to analyse responses to complexity, since this enables the authors to understand the application of known solutions in conjunction with innovative ones to resolve difficulties. This research also seeks to investigate how managers respond to supply chain complexities that can either be operationally deleterious or strategically beneficial. Design/methodology/approach The authors develop a descriptive framework based on the project management (PM) literature to understand response options to complexity, and then use interviews with supply chain managers in six organisations to examine the utility of this framework in practice. The authors ask the research question “How do managers in supply chains respond to complexities”? Findings The case study data show first that managers faced with structural, socio-political, or emergent supply chain complexities use a wide range of responses. Second, over a third of the instances of complexity coded were actually accommodated, rather than reduced, by the study firms, suggesting that adapting to supply chain complexity in certain instances may be strategically appropriate. Third, the lens of ambidexterity allows a more explicit assessment of whether existing PM solutions can be considered or if novel methods are required to address supply chain complexities. Practical implications The descriptive framework can aid managers in conceptualising and addressing supply chain complexity. Through exploiting current knowledge, managers can lessen the impact of complexity while exploring other innovative approaches to solve new problems and challenges that evolve from complexity growth driven by business strategy. Originality/value This study addresses a gap in the literature through the development of a framework which provides a structure on ways to address supply chain complexity. The authors evaluate an existing project complexity concept and demonstrate that it is both applicable and valuable in non-project, ongoing operations. The authors then extend it using the lens of ambidexterity, and develop a framework that can support practitioners in analysing and addressing both strategically necessary supply complexities, together with unwanted, negative complexities within the organisation and across the supply chain.
This paper analyzes the interrelationships between international sourcing decisions, sourcing strategies, and supplier performance. We first discuss the effect of global competition on the need for firms to seek international suppliers, and present a number of taxonomies that describe the evolution of global supply base development. The deployment of different commodity strategies (e.g., information sharing, single vs. multiple sourcing, contracts, and partnering) in conjunction with international sourcing is also reviewed. In the second half of the paper, we examine a set of international sourcing practices from a sample of 55 US manufacturing firms. Results suggest that US purchasing professionals are not spending as much time managing the ongoing buyer–supplier relationship as they are making the initial purchasing decision. This gap between ‘prescription’ and ‘practice’ represents both a competitive opportunity and threat for manufacturers.
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