Read the summary and the most important questions on Bridging organization theory and supply chain management: The case of best value supply chains

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• According to Mabert and Vankataramanan (1998) what does a supply chain do?

  
  A supply chian is a serie of units that transform raw materials into finished products and delivers those products to customers
  
  Some units of a chain are localized within a single organization, while other units are seperate firms.

• What do the authors think about the competition with regard to supply chains?

  Their contention is that the best value supply chains are most likely to prosper in today's competitive global landscape.

• What is the difference (Hult et al, 2004) between traditional and best value supply chains?

  
  Normal chains are considered as a method to move product in order to support their strategy.
  Best value supply chains adds to this that they think supply chains enhance key outcomes that drive firm performance (it is not a function to strategy, it is a key element).

• In the paper there are three attributes according to Lee (2004). What are those attributes and what do they entail?

  1. Agility: The ability of the supply chain to react quickly to unexpected or rapid shifts in supply and demand.
     A way of creating agility is to develop cultural competitivenss, which is defined as the degree to which supply chains are predisposed to detect and fill gaps between what customers want and what is offered.
     
     
  2. Adaptability: refers to the willingness to reshape supply chains when necessary (without ghosts from the past).
     
     
  3. Alignment: refers to ensuring that the interest of participans are consistent. Aligment of information is also vital -> participants must have acces to the required data on flows and forecasts.
     

• Best value supply chains strive to excel acroos multiple priorities. What are those priorities and what do they entail?

  
  They focus on the total value added to the user, not only on one priority.
  

  1. Speed: Aka cycle time. Reflects time from initiating the supply chain untill completion.
  2. Quality: Focusing on increasing product reliability and customer satisfaction.
     
  3. Cost: Create customer value by reducing costs or increasing benefits in the supply chain equition (value = benefits / costs).
  4. Flexibility: refers to a supply chain's responsiveness to consistent and changing needs of its customers.

• The notion of best value supply chains can become clearer and richer if examined from a variety of important theoreticalperspectives. What are those perspectives? (Only name them)

  1. Transaction cost economics (TCE)
  2. Agency theory
  3. Resource dependence theory (RDT)
  4. Institutional theory
  5. Game theory
  6. Network theory
  7. Social capital theory (SCT)
  8. Strategic choice
  9. Resource-based view/knowledge based view (RBV/KBV)
     

• How does transaction cost economic (TCE) relate to supply chain management?

  
  TCE centers on the make or buy decision.
  
  According to TCE managers should minimize transaction costs (= expenses identifying fair market prices, negotiating and economic exchange) through selecting make or buy.
  
  In traditional Supply Chains, short-term transaction costs are the main concern, thus creates opportunism.
  
  Members of value chains should focus on total costs, not just short term transaction costs.

• How does the agency theory relate to supply chain management?

  
  It is about that the principal delegate power to act to an agent.
  The problem could be that an agent are not acting beneficial for the principal, but for themselves.
  
  In a supply chain, an unit could be the principal as the agent due to the sequantial nature of supply chains. Oppurtinism behaviour as an agent could be devested later on, when an unit is the principal.
  
  Best value supply chains should lever tools such as reward and cultural competiviness to ensure alignment in the chain.

• How does resource dependence theory (RDT) relate to supply chain management?

  
  RDT is about how firms become dependend/reliant on other firms. They need goods (etc.) of the other party. RDT is about how to handles these relations.
  
  As supply chains memebers work together closely, they become more independ on each other.
  
  In traditional supply chains, member try to avoid to become overly depended on others (fear of being exploited). But making other dependend on yours, gives a powerfull position.
  Best value supply chains recognize that taking advantage of reliant member can have grave/unintended consequences. They are focus on creating mutual trust.

• How does institutional theory relate to supply chain management?

  
  Institutional theory emphasizes the role of environmental pressures (subtle and evolving) on firm activities.
  A foundational element is that organizations become
  homogeneous as a function of isomorphism over time.
  
  Traditional Supply Chains tend to rely on industry standards/best practices. Copy what works is seen as a prudent approach.
  Best value supply chains use recipes and best practices to inform.
  
  To what extent does a ‘‘formula’’ for creating best value supply chains exist in any given industry?