Wave-particle duality and institutional arrangement on division in supply chain cluster

Abstract

This paper is based on the practice in China, takes the coupling between industrial cluster and supply chain as the new angle using by the modern supply chain theory and industry theory, considering the supply chain cluster as such a organization: “originated but not limited to the enterprise, based on but not localized to the cluster”. Based on the physical theory and the wave-particle duality, the supply chain cluster is the special organization whose characteristic has wave-particle duality. There exists sophisticated division of labor between upstream and downstream enterprises in a supply chain cluster, and the cost-benefit computing is the main factor to determine the selection of institutional arrangement on division of labor. By enforcing different vertical relations of supply chain cluster, supply chains and their enterprises can optimize the selection and integration of different institutional arrangement on division of labor. A case study is verified our conclusions.