IDEAS home Printed from https://ideas.repec.org/a/pal/jorsoc/v61y2010i12d10.1057_jors.2009.138.html
   My bibliography  Save this article

Operational complexity and supplier–customer integration: case study insights and complexity rebound

Author

Listed:
  • S Sivadasan

    (University of Oxford)

  • J Smart

    (University of Oxford)

  • L Huaccho Huatuco

    (University of Leeds)

  • A Calinescu

    (University of Oxford)

Abstract

The main contribution of this paper is the demonstration that, contrary to conventional thinking, a measurable increase in the operational complexity of the production scheduling function between two companies can occur following closer supply chain integration. The paper presents the practical application of previous work carried out and validated by the authors in terms of (a) methodology for measuring operational complexity, (b) predicted implications of Supplier–Customer integration and (c) derivation of an operational complexity measure applied to before and after Supplier–Customer integration. This application is illustrated via a longitudinal case study. The analysis is based on information theory, whereby operational complexity of a Supplier–Customer system is defined as the amount of information required to describe the state of this system. The results show that operational complexity can increase when companies decide to integrate more closely, which is a fact likely to be overlooked when making decisions to pursue closer Supply-Chain integration. In this study, operational complexity increases due to reduced buffering arising from reduction in the Supplier's inventory capacity. The Customer did not change their operational practices to improve their schedule adherence post-integration, and, consequently, suffered an increase in complexity due to complexity rebound. Both the Supplier's and Customer's decision-making processes after the case study reported in this paper were enhanced by being able to quantify the complex areas to prioritise and direct managerial efforts towards them, through the use of the operational complexity measure. Future work could extend this study (in the ‘low product customisation’ and ‘low product value impact’ quadrant) to investigate Supplier–Customer integration in other quadrants resulting from further combinations between ‘product customisation’ and ‘product value impact’ levels.

Suggested Citation

  • S Sivadasan & J Smart & L Huaccho Huatuco & A Calinescu, 2010. "Operational complexity and supplier–customer integration: case study insights and complexity rebound," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(12), pages 1709-1718, December.
  • Handle: RePEc:pal:jorsoc:v:61:y:2010:i:12:d:10.1057_jors.2009.138
    DOI: 10.1057/jors.2009.138
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/jors.2009.138
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1057/jors.2009.138?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Frenken, Koen & Saviotti, Paolo P. & Trommetter, Michel, 1999. "Variety and niche creation in aircraft, helicopters, motorcycles and microcomputers," Research Policy, Elsevier, vol. 28(5), pages 469-488, June.
    2. van Donk, Dirk Pieter & van der Vaart, Taco, 2005. "A case of shared resources, uncertainty and supply chain integration in the process industry," International Journal of Production Economics, Elsevier, vol. 96(1), pages 97-108, April.
    3. S B Yu & J Efstathiou, 2006. "Complexity in rework cells: theory, analysis and comparison," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 57(5), pages 593-602, May.
    4. Henri Barki & Alain Pinsonneault, 2005. "A Model of Organizational Integration, Implementation Effort, and Performance," Organization Science, INFORMS, vol. 16(2), pages 165-179, April.
    5. Andrew M. Pettigrew, 1990. "Longitudinal Field Research on Change: Theory and Practice," Organization Science, INFORMS, vol. 1(3), pages 267-292, August.
    6. Wu, Y. & Frizelle, G. & Efstathiou, J., 2007. "A study on the cost of operational complexity in customer-supplier systems," International Journal of Production Economics, Elsevier, vol. 106(1), pages 217-229, March.
    7. M Khouja, 2003. "Synchronization in supply chains: implications for design and management," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 54(9), pages 984-994, September.
    8. Wikner, J. & Towill, D. R. & Naim, M., 1991. "Smoothing supply chain dynamics," International Journal of Production Economics, Elsevier, vol. 22(3), pages 231-248, December.
    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. Ruiz-Hernández, Diego & Menezes, Mozart B.C. & Amrani, Aicha, 2019. "An information-content based measure of proliferation as a proxi for structural complexity," International Journal of Production Economics, Elsevier, vol. 212(C), pages 78-91.

    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. Nicholas Berente & Kalle Lyytinen & Youngjin Yoo & John Leslie King, 2016. "Routines as Shock Absorbers During Organizational Transformation: Integration, Control, and NASA’s Enterprise Information System," Organization Science, INFORMS, vol. 27(3), pages 551-572, June.
    2. Binder, Mario & Clegg, Ben, 2007. "Enterprise management: A new frontier for organisations," International Journal of Production Economics, Elsevier, vol. 106(2), pages 409-430, April.
    3. Jorge Tarifa Fernández & Jerónimo de Burgos Jiménez & José Joaquín Céspedes Lorente, 2018. "Effects of interaction between supply chain integration and high-performance human resources practices on performance," DOCFRADIS Working Papers 1803, Catedra Fundación Ramón Areces de Distribución Comercial, revised Jul 2018.
    4. Davenport, Sally, 2005. "Exploring the role of proximity in SME knowledge-acquisition," Research Policy, Elsevier, vol. 34(5), pages 683-701, June.
    5. Obeidat, Zaid Mohammad & Xiao, Sarah Hong & Qasem, Zainah al & dweeri, Rami al & Obeidat, Ahmad, 2018. "Social media revenge: A typology of online consumer revenge," Journal of Retailing and Consumer Services, Elsevier, vol. 45(C), pages 239-255.
    6. Lehmann, Hans & Gallupe, Brent, 2005. "Information systems for multinational enterprises--some factors at work in their design and implementation," Journal of International Management, Elsevier, vol. 11(2), pages 163-186, June.
    7. Carolina Castaldi & Roberto Fontana & Alessandro Nuvolari, 2009. "‘Chariots of fire’: the evolution of tank technology, 1915–1945," Journal of Evolutionary Economics, Springer, vol. 19(4), pages 545-566, August.
    8. Roe, R.A., 2005. "Studying time in organizational behavior," Research Memorandum 046, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    9. Battaglia, Daniele & Landoni, Paolo & Rizzitelli, Francesco, 2017. "Organizational structures for external growth of University Technology Transfer Offices: An explorative analysis," Technological Forecasting and Social Change, Elsevier, vol. 123(C), pages 45-56.
    10. Elcio Mendonça Tachizawa & Cristina Giménez, 2005. "Drivers and sources of supply flexibility: An exploratory study," Economics Working Papers 889, Department of Economics and Business, Universitat Pompeu Fabra.
    11. Fox, Stephen & Groesser, Stefan N., 2016. "Reframing the relevance of research to practice," European Management Journal, Elsevier, vol. 34(5), pages 457-465.
    12. Cecere, Grazia & Corrocher, Nicoletta & Battaglia, Riccardo David, 2015. "Innovation and competition in the smartphone industry: Is there a dominant design?," Telecommunications Policy, Elsevier, vol. 39(3), pages 162-175.
    13. Mohammad Ali Yamin, 2021. "Investigating the Drivers of Supply Chain Resilience in the Wake of the COVID-19 Pandemic: Empirical Evidence from an Emerging Economy," Sustainability, MDPI, vol. 13(21), pages 1-16, October.
    14. Sternitzke, Christian, 2013. "An exploratory analysis of patent fencing in pharmaceuticals: The case of PDE5 inhibitors," Research Policy, Elsevier, vol. 42(2), pages 542-551.
    15. Pettus, Michael L. & Kor, Yasemin Y. & Mahoney, Joseph T., 2007. "A Theory of Change in Turbulent Environments: The Sequencing of Dynamic Capabilities Following Industry Deregulation," Working Papers 07-0100, University of Illinois at Urbana-Champaign, College of Business.
    16. Swan, Jacky & Goussevskaia, Anna & Newell, Sue & Robertson, Maxine & Bresnen, Mike & Obembe, Ademola, 2007. "Modes of organizing biomedical innovation in the UK and US and the role of integrative and relational capabilities," Research Policy, Elsevier, vol. 36(4), pages 529-547, May.
    17. Sally Maitlis & Thomas B. Lawrence, 2003. "Orchestral Manoeuvres in the Dark: Understanding Failure in Organizational Strategizing," Journal of Management Studies, Wiley Blackwell, vol. 40(1), pages 109-139, January.
    18. Gebauer, Heiko & Worch, Hagen & Truffer, Bernhard, 2012. "Absorptive capacity, learning processes and combinative capabilities as determinants of strategic innovation," European Management Journal, Elsevier, vol. 30(1), pages 57-73.
    19. Shih-Chang Hung & Yung-Ching Tseng, 2017. "Extending the LLL framework through an institution-based view: Acer as a dragon multinational," Asia Pacific Journal of Management, Springer, vol. 34(4), pages 799-821, December.
    20. Ariel Mendez & Delphine Mercier, 2007. "Territorial Dynamics and History Imprint : Two french Clusters in Transition in the South East Region," Working Papers halshs-00360764, HAL.

    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:pal:jorsoc:v:61:y:2010:i:12:d:10.1057_jors.2009.138. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    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.