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A macro-institutional perspective on supply chain environmental complexity

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  • Kinra, Aseem
  • Kotzab, Herbert

Abstract

Supply chain management is a practitioner-generated discipline, which has gained much popularity in the last two decades. Adopting a supply chain perspective also involves the address of structural decision criteria relating to capacity, size and location of supply chain activity, the "supply chain" typified by a network of independent firms. As a result, it becomes important to address macro-institutional constraints, especially in any supply chain perspective because of the inherent global scope of supply chain operations. This paper uses the environment-strategy-performance (E-S-P) paradigm as a means to understand the relevance of environment (complexity) facing supply chain operations, while proposing that an environmental analysis best represents a multi-criteria decision-making problem. Environmental complexity is translated using Guisinger's [2001. From OLI to OLMA: incorporating higher levels of environmental and structural complexity into the eclectic paradigm. International Journal of The Economics of Business 8(2), 257-272] proposed taxonomy of macro-institutions that are relevant and pose constraints to extended operations viz. with international or global outlook. Finally, this decision-making problem is illustrated by applying the analytic hierarchy process (AHP) approach to an illustrative site-location problem with generic constraints.

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  • Kinra, Aseem & Kotzab, Herbert, 2008. "A macro-institutional perspective on supply chain environmental complexity," International Journal of Production Economics, Elsevier, vol. 115(2), pages 283-295, October.
    • Handle: RePEc:eee:proeco:v:115:y:2008:i:2:p:283-295
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    6. Huo, Baofeng & Han, Zhaojun & Zhao, Xiande & Zhou, Honggeng & Wood, Craig H. & Zhai, Xin, 2013. "The impact of institutional pressures on supplier integration and financial performance: Evidence from China," International Journal of Production Economics, Elsevier, vol. 146(1), pages 82-94.
    7. Kavilal, E.G. & Prasanna Venkatesan, S. & Harsh Kumar, K.D., 2017. "An integrated fuzzy approach for prioritizing supply chain complexity drivers of an Indian mining equipment manufacturer," Resources Policy, Elsevier, vol. 51(C), pages 204-218.

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