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Publication Detailed Description
Strategic fast supply demand-chains in a network context: opportunistic practices that can destroy supply chain systems
Journal Title
American Journal of Industrial and Business Management
Year (definitive publication)
2014
Language
English
Country
United States of America
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Abstract
This paper has a conceptual character and explores an approach between transaction cost analysis
theory and network theory when applied to supply chains in a broader context: industrial
management research. This approach raises the assumptions that fast supply chains, i.e., supply
chains made of short time relationships and multiple partners can contribute to destroying trust
and collaboration between companies, ending up by stressing actual systems’ arrangements in
somehow stable supply chains/network chains. As a consequence, transforming them in distrust
arrangements and thus giving birth to new (old) approaches based only on transaction cost analysis
theory: opportunism and limited rationality as the continuum for relationships between companies
in a globalized world with numerous potential agents/companies that can play several
roles. Too high levels of entropy can show this reality: the number of potential players (suppliers,
customers or complementors) with theoretically equal probability of establishing partnerships
with one focal company in a supply chain or network arrangement is excessive in relation to the
number of current suppliers, customers and complementors, and for that reason, the focal company
is somehow dissipating energy in identifying several potential players and in a state of giving
one way or another equal importance to them all, situation that can affect stable relations with
current partners. Theoretically, this will create what looks like strategic fast supply—demand
chains or network chains: fast because they are rapidly settle down and fast as they are also rapidly
dismantled. Those arrangements are the ones responsible for several possible and fast relations
(internalizing resources from the environment and/or externalizing resources to the environment)
but, anyway, contributing to loose trust, credibility and running against profitable
games with partners already involved with focal companies in stable supply chains.
Acknowledgements
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Keywords
Fast Supply Chains; Network Chains; Opportunism; Collaboration