Optimal levels of (de)centralization for resilient supply chains
The International Journal of Logistics Management
ISSN: 0957-4093
Article publication date: 12 February 2018
Abstract
Purpose
The purpose of this paper is to illustrate how centralization and decentralization of supply chains (SCs) play a major role in creating organizational resilience.
Design/methodology/approach
Starting with the basic tenets of contingency theory and applying a grounded theory approach, results from exploratory qualitative and quantitative studies are combined to investigate the impact of (de)centralization on SC resilience capabilities.
Findings
The findings from a comprehensive literature review combined with two empirical surveys indicate that four important organizational capabilities are needed in order to cope with internal and external disruptions: fast reactions to unforeseen disturbances, reducing the number of negative external forces, reducing the impact of negative external forces and the quick return to normal operating processes. Furthermore, it is illustrated how (de)centralization activities can support these capabilities and thus maximize the SC resilience.
Originality/value
This paper presents 12 measures for (de)centralization and shows how they can support the four major capabilities of resilient companies. The results from qualitative and quantitative surveys allow for a holistic understanding of the organization and provide a basis for future SC resilience research.
Keywords
Acknowledgements
This research was supported by the Grant No. 841333 “ReSCUE” within the BRIDGE program from the Austrian Research Promotion Agency (FFG). The author wants to thank the team from LOGISTIKUM Steyr (University of Applied Sciences Upper Austria) and especially Dr Markus Gerschberger for his valuable input and support.
Citation
Treiblmaier, H. (2018), "Optimal levels of (de)centralization for resilient supply chains", The International Journal of Logistics Management, Vol. 29 No. 1, pp. 435-455. https://doi.org/10.1108/IJLM-01-2017-0013
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited