Supply Chain Management: The Logic of Supply Chains and Networks

A major assumption in the supply chain management literature is that there is an economic rationale to the integration of processes across firm boundaries. In essence, it is assumed that there is a benefit in adapting and coordinating the activities carried out in sequence by the actors in the supply chain. The purpose of this paper is to further develop and evaluate this fundamental assumption. Based on a theoretical framework regarding interdependencies and the analysis of five different supply chains, it is proposed that there are theoretical as well as empirical reasons for enhancing the underlying logic of process integration in supply chain management to capture pooled and reciprocal interdependencies. It is argued, that by enhancing the logic, one might better understand how managers prioritize their firms' strategic actions and therefore also actual organizational behavior.