Contingency approach to supply chain management : Design and an empirical test of a contingency model
Raita, Katariina (2021-03-02)
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi-fe202103026298
https://urn.fi/URN:NBN:fi-fe202103026298
Tiivistelmä
Purpose – The complex business environment challenges organizations to streamline their operations and focus on core competencies. Resulting from this, organizations compete against each other as integrated business entities rather than as individual organizations. This increases the importance of supply networks and efficient supply chain management. The purpose of this study is to explore the application of the contingency approach to supply chain management, which could facilitate organizations to optimize purchasing operations and supplier relations, thus increasing the efficiency of supply chain management. This study examines the contingency fit of supplier integration and purchasing complexity and its effect on operative performance. The aim is to provide insight into how the supply chain can be managed from the contingency perspective.
Framework – The study combines research from supply management and strategic purchasing, focusing on supplier integration and purchasing portfolio models. In the literature review, critical elements of supplier relationships that influence the level of integration are discussed, and the strategic purchasing and purchasing portfolio model literature is reviewed. These theories are applied with the contingency perspective to examine supply chain management. Based on the literature review, a contingency model is developed.
Methodology – The research is conducted as an explorative embedded case study. The data was collected from both buyer and supplier representatives by using electronic surveys. A total of 13 supplier relationships was analyzed. This study analyzes the data in a comparative manner and tests the developed model.
Findings – This thesis increases the understanding of applying the contingency fit to supply chain management and effectively managing supplier relationships while considering the internal and external supply environment. The findings indicate that supplier integration positively affects operative performance. The results also demonstrate a connection between the contingency fit of integration and purchasing complexity and operative performance. However, this requires further research.
Contribution – The study contributes to the supply chain management literature by emphasizing the relationship between supplier integration and performance and developing a contingency model that can be utilized when determining the correct supply management activities and strategies. This thesis further emphasizes the strategic importance of supply management and purchasing and the criticality of aligning supplier relationship and purchasing strategies with the environmental and situational context to create efficient supply chain operations.
Framework – The study combines research from supply management and strategic purchasing, focusing on supplier integration and purchasing portfolio models. In the literature review, critical elements of supplier relationships that influence the level of integration are discussed, and the strategic purchasing and purchasing portfolio model literature is reviewed. These theories are applied with the contingency perspective to examine supply chain management. Based on the literature review, a contingency model is developed.
Methodology – The research is conducted as an explorative embedded case study. The data was collected from both buyer and supplier representatives by using electronic surveys. A total of 13 supplier relationships was analyzed. This study analyzes the data in a comparative manner and tests the developed model.
Findings – This thesis increases the understanding of applying the contingency fit to supply chain management and effectively managing supplier relationships while considering the internal and external supply environment. The findings indicate that supplier integration positively affects operative performance. The results also demonstrate a connection between the contingency fit of integration and purchasing complexity and operative performance. However, this requires further research.
Contribution – The study contributes to the supply chain management literature by emphasizing the relationship between supplier integration and performance and developing a contingency model that can be utilized when determining the correct supply management activities and strategies. This thesis further emphasizes the strategic importance of supply management and purchasing and the criticality of aligning supplier relationship and purchasing strategies with the environmental and situational context to create efficient supply chain operations.