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Supply chain discontent

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Abstract:

Purpose ‐ This study was conducted to examine supply chain discontent in an integrative way. Design/methodology/approach ‐ The organisational economics view is adopted as an approach to reveal multiple sources of discontent which consist of incongruent objectives, disintegrated performance measures, unsynchronised decision-making, information asymmetry, misaligned incentives, and fragmented business processes. All these sources separately or collectively contribute to reduce the potential of total profits arising from collaboration. Findings ‐ It is argued that to effectively mitigate supply chain discontent, the chain members need to collaboratively design antidotes for discontent. In this paper six antidotes to discontent are proposed, namely mutual strategic objectives, appropriate performance measures, decision synchronisation, information sharing, incentive alignment, and streamlined intercompany business processes. It also shows that previous studies have not addressed supply chain discontent in an integrative way. Originality/value ‐ This study, therefore, provides a new insight for managers to understand multiple sources of discontent as well as its antidotes.

Keywords: Business environment; Economic cooperation; Information disclosure; Supply chain management

Document Type: Research Article

DOI: https://doi.org/10.1108/14637150510609390

Publication date: 2005-08-01

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