Applications of the Kraljic-Tesfay portfolio matrix and the hyper-hybrid coordination in global supply chain analysis

Yohannes Yebabe Tesfay

International Journal of Logistics Economics and Globalisation, 2018, vol. 7, issue 2, 125-150

Abstract: This article proposed to show the limitations of transaction cost analysis (TCA) based on deep examinations of the causes of the Bullwhip effect. To analyse the potential causes of the Bullwhip effect, the author applied panel data regression models and seemingly unrelated regression models on the experimentally simulated data from beer distribution game. The best-fitted Cochrane-Orcutt autoregression recursive estimation result of the seemingly unrelated regression models prevails that the Bullwhip effects can be caused by both intra-organisational and inter-organisational coordination of the business partners in the supply chain. The effects of the intra-organisational coordination on the bullwhip effects showed the drawback of the existing theory of organisational coordination. Consequently, the author figured out, the solutions of the TCA are still insufficient to produce effective and efficient organisational coordination. In order to diagnose the drawbacks of the TCA, the author introduced a new type of organisational coordination called the hyper-hybrid (Tesfay-coordination) governance. Finally, the author has shown some of the applications of the hyper-hybrid coordination to solve complex problems of global supply chain analysis.

Keywords: Bullwhip effects; transaction cost analysis; TCA; stochastic models; hyper-hybrid coordination and Kraljic-Tesfay portfolio model. (search for similar items in EconPapers)
Date: 2018
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