Supply chain turbulence: the impact of a mid-range event in multi-tier, multi-dimension supply chains
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2015-07-20
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Brito, Luiz Artur Ledur
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This dissertation aims at understanding complex multi-tier, multi-dimension supply chains, investigating why and how an event in a focal firm affects members of its own and other supply chains. To fulfill this goal, two approaches were used, a theoretical and an empirical approach. For the theoretical study, we developed a novel way to look at dissemination of the impact of an event over a supply chain through metaphorical transfer. We built upon the physics of stone skipping, analyzing the correspondence between elements from physics and supply chains at the levels of ontology, analogy, and identity. The main contributions of the theoretical study were the development of six propositions and a model of dissemination of the impact of an event over a supply chain. Second, we applied the propositions using a set of qualitative data collected in the cosmetics industry in Brazil. We conducted 131 semi-structured in-depth interviews and 22 site visits, in addition to observation and analysis of documents. The multiple case studies were based on six complex, multi-tier, multi-dimension supply chains encompassing up to seven tiers each. Within and cross-case analysis were conducted. The results of the empirical study are presented in two parts. First, we analyzed the six supply chains in detail and identified six mid-range events that had impacts beyond the source firm. Second, we tested the propositions from the theoretical part of this study and their application to the identified mid-range events. Our results indicated that, differently from the current literature, supply chains are not linear. In multi-tier, multi-dimension supply chains, the same firm can play different roles according to the supply chain it is part of different times. Thus, supply chains are better portrayed as a set of interlocking networks. Our findings also support viewing a supply chain as a chain of individual relationships. Several elements impact the dissemination of the impact of an event over a supply chain. Among them, power of the source firm and the personal social influence of the individuals in the source firm play a significant role. In addition, because individuals make decisions and implement events, it is important to consider that personal heuristics, biases, and locus of control will be manifested by the individuals in all contexts, both internal (focal firm), and external (supply chin links), and that those human irrationalities will impact the perception of the event and influence the continuity and extent of its impact in the supply chain. Our findings also support the notion that the impact of an event is disseminated over a supply chain through its members’ weak ties.
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Nota: A autora agradece à Fundação de Amparo à Pesquisa do Estado de São Paulo (FAPESP) pela concessão de bolsa de estudos para o desenvolvimento deste projeto de pesquisa.