Theoretical Analysis of a Multi-Tier Supply Chain Management Process Integration: A Case Study Method

Abstract

Purpose: - Case studies of 12 automotive supply chains are used to build a theory of multi-tier supply chain management (SCM) processes integration which links patterns of multi-tier process integration with cost and differentiation strategies of the focal firms.
 Design/Methodology/Approach: The cases build on previous researches by examining the rationales and extents in which a focal firm integrates the key supply chain management processes across first, second and third-tier suppliers, logistics service providers and authorized dealers. Data was collected in two rounds, followed by codification and analysis.
 Findings: The analyses suggest that firms with lower scope and span of process integration prioritized cost efficiency and firms with larger scope and span of process integration prioritized both cost efficiency and customer service differentiation. As a result, propositions for explaining strategic priorities driving multi-tier SCM process integration are developed.
 Implications/Originality/Value: This study provides managerial accounts and theoretical foundation to explain the needs for different levels, scopes and span of SCM process integration and the extent to which the span of integration (tiers) should be extended.