IDEAS home Printed from https://ideas.repec.org/a/bla/jscmgt/v57y2021i3p50-71.html
   My bibliography  Save this article

Fighting to survive: how supply chain managers navigate the emerging legal cannabis industry

Author

Listed:
  • Daniel Krause
  • Madeleine Pullman

Abstract

The cannabis industry is a new quasi‐legal industry. Growing, selling, and using cannabis are still illegal in most countries. However, 24 countries and 33 U.S. states have approved cannabis for medical use, and five countries and 11 U.S. states allow recreational use. This research focuses on value‐added producers (VAPs), companies that process cannabis to manufacture ingestible, inhalable, or topical products. Due to public health concerns, the VAP tier of the cannabis supply chain faces stringent regulatory focus and turbulence. Using multiple case studies of VAPs in an emerging cannabis industry, this research investigates how these companies' primary supply chain decision‐makers make and implement strategic decisions in an environment characterized by fast‐changing regulations. While the public often perceives this new market as a way for new business owners to get rich quick, the results of this research paint a different picture. Neither significant corporate expertise and funding nor black‐market cannabis experience are necessarily predictors of success. Incorporating the underpinnings of dynamic managerial capabilities, namely managerial cognitive capital, human capital, and social capital, this research investigates how VAP companies have managed their production and supply chains to ultimately thrive, survive, or fail. Human and cognitive capital is important, but social capital that reaches beyond the supply chain is a distinguishing feature of firms that thrive in this nonpredictive environment.

Suggested Citation

  • Daniel Krause & Madeleine Pullman, 2021. "Fighting to survive: how supply chain managers navigate the emerging legal cannabis industry," Journal of Supply Chain Management, Institute for Supply Management, vol. 57(3), pages 50-71, July.
    • Handle: RePEc:bla:jscmgt:v:57:y:2021:i:3:p:50-71
    DOI: 10.1111/jscm.12238
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/jscm.12238
    Download Restriction: no
    File URL: https://libkey.io/10.1111/jscm.12238?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    2. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    3. Ron Adner & Constance E. Helfat, 2003. "Corporate effects and dynamic managerial capabilities," Strategic Management Journal, Wiley Blackwell, vol. 24(10), pages 1011-1025, October.
    4. Elaine Mosakowski, 1997. "Strategy Making Under Causal Ambiguity: Conceptual Issues and Empirical Evidence," Organization Science, INFORMS, vol. 8(4), pages 414-442, August.
    5. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    6. Thomas J. Kull & Josip Kotlar & Martin Spring, 2018. "Small and Medium Enterprise Research in Supply Chain Management: The Case for Single†Respondent Research Designs," Journal of Supply Chain Management, Institute for Supply Management, vol. 54(1), pages 23-34, January.
    7. Constance E. Helfat & Margaret A. Peteraf, 2015. "Managerial cognitive capabilities and the microfoundations of dynamic capabilities," Strategic Management Journal, Wiley Blackwell, vol. 36(6), pages 831-850, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Manuel Sánchez-Pérez & María Belén Marín-Carrillo & María Dolores Illescas-Manzano & Zohair Souilim, 2023. "Understanding the illegal drug supply chain structure: a value chain analysis of the supply of hashish to Europe," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-13, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jolien Roelandt & Petra Andries & Mirjam Knockaert, 2022. "The contribution of board experience to opportunity development in high-tech ventures," Small Business Economics, Springer, vol. 58(3), pages 1627-1645, March.
    2. Carl Åberg & Mariateresa Torchia, 2020. "Do boards of directors foster strategic change? A dynamic managerial capabilities perspective," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 24(3), pages 655-684, September.
    3. Sabina Tasheva & Bo Bernhard Nielsen, 0. "The role of global dynamic managerial capability in the pursuit of international strategy and superior performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 0, pages 1-20.
    4. Carlo Salvato & Roberto Vassolo, 2018. "The sources of dynamism in dynamic capabilities," Strategic Management Journal, Wiley Blackwell, vol. 39(6), pages 1728-1752, June.
    5. Che-Chuan Hsu & Rua-Huan Tsaih & David C. Yen, 2018. "The Evolving Role of IT Departments in Digital Transformation," Sustainability, MDPI, vol. 10(10), pages 1-18, October.
    6. Wohlgemuth, Veit & Wenzel, Matthias & Berger, Elisabeth S.C. & Eisend, Martin, 2019. "Dynamic capabilities and employee participation: The role of trust and informal control," European Management Journal, Elsevier, vol. 37(6), pages 760-771.
    7. Helfat, Constance E. & Raubitschek, Ruth S., 2018. "Dynamic and integrative capabilities for profiting from innovation in digital platform-based ecosystems," Research Policy, Elsevier, vol. 47(8), pages 1391-1399.
    8. Carl Åberg & Wei Shen, 2020. "Can board leadership contribute to board dynamic managerial capabilities? An empirical exploration among Norwegian firms," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 24(1), pages 169-197, March.
    9. Sabina Tasheva & Bo Bernhard Nielsen, 2022. "The role of global dynamic managerial capability in the pursuit of international strategy and superior performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(4), pages 689-708, June.
    10. Szymanski, Mike & Fitzsimmons, Stacey R. & Danis, Wade M., 2019. "Multicultural managers and competitive advantage: Evidence from elite football teams," International Business Review, Elsevier, vol. 28(2), pages 305-315.
    11. Kim, Jongwook & Mahoney, Joseph T., 2008. "A Strategic Theory of the Firm as a Nexus of Incomplete Contracts: A Property Rights Approach," Working Papers 08-0108, University of Illinois at Urbana-Champaign, College of Business.
    12. Jim Andersén, 2023. "Green resource orchestration: A critical appraisal of the use of resource orchestration in environmental management research, and a research agenda for future study," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5506-5520, December.
    13. von den Driesch, Till & Eva Susanne da Costa, Maika & Christina Flatten, Tessa & Brettel, Malte, 2015. "How CEO experience, personality, and network affect firms' dynamic capabilities," European Management Journal, Elsevier, vol. 33(4), pages 245-256.
    14. C. Lakshman & Sangeetha Lakshman & Kubilay Gok, 2023. "Managers’ knowledge and customer-focused knowledge management as dynamic capabilities: implications for innovation performance," Asian Business & Management, Palgrave Macmillan, vol. 22(1), pages 246-274, February.
    15. Xiao Zhang & Luqun Xie & Jiatao Li & Li Cheng, 2022. "“Outside in”: Global demand heterogeneity and dynamic capabilities of multinational enterprises," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(4), pages 709-722, June.
    16. Bağış, Mehmet & Kryeziu, Liridon & Akbaba, Yılmaz & Ramadani, Veland & Karagüzel, Ensar Selman & Krasniqi, Besnik A., 2022. "The micro-foundations of a dynamic technological capability in the automotive industry," Technology in Society, Elsevier, vol. 70(C).
    17. Maria Rosa De Giacomo & Raimund Bleischwitz, 2020. "Business models for environmental sustainability: Contemporary shortcomings and some perspectives," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3352-3369, December.
    18. Anja Schulze & Stefano Brusoni, 2022. "How dynamic capabilities change ordinary capabilities: Reconnecting attention control and problem‐solving," Strategic Management Journal, Wiley Blackwell, vol. 43(12), pages 2447-2477, December.
    19. Erwin Danneels, 2016. "Survey measures of first- and second-order competences," Strategic Management Journal, Wiley Blackwell, vol. 37(10), pages 2174-2188, October.
    20. Huy-Cuong Vo-Thai & Shihmin Lo & My-Linh Tran, 2021. "How Capability Reconfiguration in Coping With External Dynamism Can Shape the Performance of the Vietnamese Enterprises," SAGE Open, , vol. 11(3), pages 21582440211, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jscmgt:v:57:y:2021:i:3:p:50-71. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1523-2409 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.