Framing the interplay mechanisms between structural and dynamic complexity in supply chains

Abstract

This paper explores the interplay between structural and dynamic complexity factors, uncovering the mechanisms that underpin it. Four in-depth inductive case studies, which comprised semi-structured interviews with senior operations and SC managers as well as the use of companies' official documents and other secondary data, were carried out. The study offers a deep understanding and provides rich empirical descriptions of the interplay between structural and dynamic complexity factors. A general framework to represent different aspects of this interplay is also introduced, i.e. the House of Supply Chain Complexity diagram; as a practical tool for mapping the complexity factors and inferring the prevailing interplay mechanisms in specific cases. The results show four interplay mechanisms between structural and dynamic complexity factors: silo-thinking, localism, limited adaptability and increased uncertainty. Testable propositions are presented with relevant insights on the interplay between a wide range of structural and dynamic complexity factors. Research implications relate to: (i) a general framework usable to further investigate interplay mechanisms at factors level and in different SC contexts and (ii) theory building on the suggested interplay mechanisms. We contribute to enhance contingency research claiming for the importance of considering the cumulative effect of contingency factors on SC performance. The results also suggest that managers can accommodate the mechanisms of silo-thinking and increased uncertainty by information sharing and organizational means, but the interplay mechanisms of localism and limited adaptability appear to be more related to the physical structure of SC elements and thus mainly manageable by reducing complexity, i.e. reducing the factors involved in the interplay.

Untying the Gordian knot: A systematic review and integrative framework of supply network complexity

“…Furthermore, firms face increased logistics costs or import-related expenses as the number of supplier countries and geographical dispersion increases (Bozarth et al, 2009;Lorentz et al, 2012). Fernández Campos et al (2022) also warn about the amplified negative impact on cost due to the interaction between structural and dynamic complexity.…”

“…Another group of studies—often adopting contingency theory (Lawrence & Lorsch, 1967)—contend that SNC serves as a contextual factor beyond the organization's control, influencing the efficacy of practices (e.g. Birkie et al., 2017; Fernández Campos et al., 2022; Iftikhar et al., 2022) and acting as a contingency factor. Many of these studies adopt resource‐based theories , investigating the impact of SNC on the acquisition of various resources and capabilities (Brandon‐Jones et al., 2014; Fianko et al., 2023; Gupta et al., 2018).…”

“…Fernández Campos et al. (2022) also warn about the amplified negative impact on cost due to the interaction between structural and dynamic complexity.…”

Resource orchestration capability for innovation: towards an empirically validated measurement framework

“…The gamut of resources that they have to explore, organize and exploit under governmental, competitive, and societal pressures while creating superior value for their organizational stakeholders can be overwhelming (Huatuco et al, 2010). The sheer magnitude of these challenges involved in developing and delivering successful innovations can stretch an organization's existing resource base thin leading to large-scale inefficiencies (Fern andez Campos et al, 2022;Lianto et al, 2022). To avoid such inefficiencies, organizations need to internally orchestrate their innovation-critical resources such as talent and technology with higher efficiency and effectiveness.…”

“…, 2010). The sheer magnitude of these challenges involved in developing and delivering successful innovations can stretch an organization's existing resource base thin leading to large-scale inefficiencies (Fernández Campos et al. , 2022; Lianto et al.…”