Faculty Scholarship 1994 - Present

A Coordination Theory Approach to Restructuring the Supply Chain: An Empirical Study from the Focal Company Perspective

In the wake of global financial crisis, a growing number of firms have begun to reassess their strategic goals and subsequently restructure their global supply chains. Since supply chain restructuring often leads to dramatic changes in the business paradigm, there is a need to examine whether or not it affects the ways firms coordinates their business activities and integrates product innovations across the supply chain. Nevertheless, little has been known about the antecedents of supply chain restructuring and the impact of supply chain restructuring on manufacturing practices. To fill the void in this line of research, we propose coordination theory that can explain causal links between supply chain restructuring and key strategic variables essential for the supply chain success from focal company perspectives. These strategic variables may include the extent of coordination with suppliers, the degree of information sharing with suppliers, and the level of organizational integration. Our empirical analysis based on the International Manufacturing Strategy Survey IV confirms the validity of coordination theory in that business initiatives intended for greater coordination and information sharing with suppliers turned out to be a major driving force behind supply chain restructuring, which facilitates organizational integration.