The Coevolution Of The Firm And The Supply Network: A Complex Systems Perspective

A complex adaptive systems approach has been permeating organizational studies andthe field of supply network management helping to describe and explain supplynetwork dynamics and emergent inter-firm structures. This has improved ourtheoretical knowledge of the nature of supply networks transforming raw materialsinto products, within a constantly changing environment. From the early days ofsimple structures, describing bi-lateral, local arrangements between firms for thecreation of relatively simple products, we are now in an environment of varioussupply network archetypes, describing different global sourcing regimes of highlyintegrated, sophisticated products within multi-tier networks.This thesis is a study of the coevolution of the firm and supply network in thecommercial aerospace manufacturing sector producing jetliners of 100 or more seats.One of the contributions of this research is to demonstrate how the holistic approachof complexity science can be applied to describe, understand and gain new insightinto the coevolution of the firm and the supply network. Based on the findings ofmultiple interviews and questionnaires in eight global aerospace firms across multiplesupply chain tiers, this research finds high-performing clusters of inter-firmcharacteristics, plus the aspects of structure and integration which deliver the supplynetwork performance. Practitioners can use these specific results to examine theirown firms and the new coevolutionary conceptual framework developed in the thesismay aid future research studies of complex adaptive systems in practice.The simple survey design and analysis method used in the final research stage of thisresearch, has the potential for use in other industries, markets and other complexadaptive systems generally to examine performance outcomes and the effects ofhaving or adopting new inter-firm characteristics. Finally, implications for policyinclude the potential to legitimize supply networks in order to stimulate competitionand innovation in the economy.