A macro-institutional perspective on supply chain environmental complexity

Aseem Kinra and Herbert Kotzab

International Journal of Production Economics, 2008, vol. 115, issue 2, 283-295

Abstract: Supply chain management is a practitioner-generated discipline, which has gained much popularity in the last two decades. Adopting a supply chain perspective also involves the address of structural decision criteria relating to capacity, size and location of supply chain activity, the "supply chain" typified by a network of independent firms. As a result, it becomes important to address macro-institutional constraints, especially in any supply chain perspective because of the inherent global scope of supply chain operations. This paper uses the environment-strategy-performance (E-S-P) paradigm as a means to understand the relevance of environment (complexity) facing supply chain operations, while proposing that an environmental analysis best represents a multi-criteria decision-making problem. Environmental complexity is translated using Guisinger's [2001. From OLI to OLMA: incorporating higher levels of environmental and structural complexity into the eclectic paradigm. International Journal of The Economics of Business 8(2), 257-272] proposed taxonomy of macro-institutions that are relevant and pose constraints to extended operations viz. with international or global outlook. Finally, this decision-making problem is illustrated by applying the analytic hierarchy process (AHP) approach to an illustrative site-location problem with generic constraints.

Keywords: Supply; chain; operations; Institutional; constraints; Decision; making; Environmental; analysis; Analytic; hierarchy; process (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:115:y:2008:i:2:p:283-295

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