Organizational design change in multinational supply chain organizations

Abstract

PurposeManaging internal supply chains is becoming increasingly complex, requiring managers to balance diverse needs. As a result, managers continuously face the need to change how they organize their internal supply chains. The purpose of this paper is to examine this phenomenon by addressing why multinational supply chain management organizations (SCMOs) change their designs, as well as how managers respond to pertinent change phenomena using complementary theoretical perspectives.Design/methodology/approachQualitative data, collected from 50 executives within 24 multinational manufacturers, is used to develop an understanding of the organizational design change phenomena. A theory elaboration approach is taken to illustrate how various theoretical perspectives explain organizational design change.FindingsThis study identifies and elaborates organizational design change phenomena in the context of multinational SCMOs, including internal and external drivers of design change. Managers also discussed key supply chain management capabilities that were developed in order to meet perceived changes in business needs.Research limitations/implicationsThis study contributes to academic understanding of organizational design issues affecting SCMOs. Four theoretical perspectives are elaborated upon to illustrate their applicability for examining SCMO organizational design issues.Practical implicationsThis study provides managerial application of several organizational design change theories by elaborating principles for framing, interpreting, and implementing design change initiatives in internal SCMOs.Originality/valueThis is one of the first studies to investigate organizational design change in multinational SCMOs. This research highlights the complexity and evolving nature of SCMO organizational design decisions by describing the adaption, integration, and reconfiguration of firm resources and competencies in changing environments.