Strategic response in fragmented networks

Information explosion, globalisation and the reduction of trade barriers have led to theemergence of global production markets and broader access to a range of products forcustomers. For manufacturers this has led to managing fragmented networks to dealwith more polarised markets with wider variety of products at reduced costs and shorterlifecycles in an increasingly competitive environment. This coupled with the pressureto create shareholder value calls for a dynamic approach in the design and managementof their supply chains.Market responsiveness is ability to anticipate and react purposefully within appropriatetimescale to changes in the market place in order to maximise shareholder value andcustomer value. The aim of this research is to develop a model for marketresponsiveness that will enable organisations to deal with the changing needs of themarket.To achieve this aim the research methodology was designed to primarily collectqualitative evidence from three distinct supply chains within different industrialcontexts. Contrasting across these contexts has helped to determine if the model isgeneric enough to be applicable in other contexts. The findings were that value gapsexist between interfaces within organisations and their supply chains. At such gapsvalue is either created, maintained or lost. Value gaps are the primary reasons whyorganisational tensions exist as the entities involved are focused on conflicting strategicobjectives that lead to behavioural misalignment and ultimately poor response.Therefore the research concludes within a market responsiveness model within whichthere are frameworks for business performance management and managing the valueexecution point of which maximum shareholder value and customer value can becreated.