Supply network initiatives – a means to reorganise the supply base?

Abstract

Purpose

While numerous articles have stressed the importance of developing and maintaining supply networks, there is still a dearth of studies that address how supply networks arise and change over time. The purpose of this article is to describe and conceptualise how a firm initiates the development of a supply network, and how the structure of the firm's supply network and supply base change over time as a consequence of the type and duration of initiative taken?

Design/methodology/approach

Empirically, the article is based on a longitudinal, single case study, which is real‐time, theory‐led and contextual. The case study concerns the efforts of a main contractor (within the construction industry) who changed its sourcing strategy, initiated the development of a supply network, and restructured part of its supply base. Theoretically, the article reviews both supply base and supply network management literature, highlights important issues related to both concepts, and discusses similarities and differences between them.

Findings

It is possible to discern between supply network initiatives of more permanent versus more temporary character. Supply network initiatives of a more permanent character comprise the establishment of, for example, organisational structures, functions, manuals and (explicit) routines aimed at continually supporting the maintenance of the supply network. Supply network initiatives of a more temporary character are organised as projects and aim to set in motion a process that may result in the creation of a supply network which develops over time without institutionalised network support structures. A single temporary supply network initiative is useful to consider in relation to the pre‐initiative stage, the ongoing initiative stage and the post‐initiative stage of the initiative. Furthermore, supply networks may be managed through an emergent series of temporary supply network initiatives aimed at supporting the supply network as it emerges over time in a changing context.

Practical implications

Managers may benefit from considering whether a supply network initiative is of a more permanent or a more temporary nature. If it is of a more temporary character, managers may consider analysing the initiative in its pre‐initiative, ongoing initiative, and post‐initiative stages in order to reflect on and learn from the initiative. Furthermore, if the initiative is temporary but form part of a planned or an emerging sequence of initiatives, managers may search for and consider earlier initiatives which may be viewed as “experiments” in a emerging trial‐and‐error learning process aimed at managing supply networks.

Originality/value

The article illustrates how a temporary supply network initiative can be used as a means to instigate reform of a supply base.

Citation

Holmen, E., Pedersen, A. and Jansen, N. (2007), "Supply network initiatives – a means to reorganise the supply base?", Journal of Business & Industrial Marketing, Vol. 22 No. 3, pp. 178-186. https://doi.org/10.1108/08858620710741887