Supply chain relationship tolerance: Insights from punctuated equilibrium theory and complexity theory

Abstract

Supply chain relationships are said to be complex, dynamic and evolving socioeconomic phenomena. If this is the case, then how strong are supply chain relationships? and how tolerant are they to significant changes to extant collaborative behaviours? This research seeks to measure Zones of Tolerance (ZoT) around major collaborative behaviours beyond which a major change in the nature of the relationship is postulated. While consumer ZoTs have been empirically measured in services marketing, little work has been attempted to empirically measure ZoTs for inter-organisational supply chain relationships. We examine such ZoTs and use Punctuated Equilibrium theory and Complexity theory as interpretative dialectics to help conceptualise the causal forces and illustrate the mechanisms of punctuated change once ZoTs have been exceeded. Our results show that ZoTs do indeed exist around each collaborative behaviour, and these generate a form of relational inertia preventing supply chain relationships from bifurcating frequently, hence increasing resilience. But not all ZOTs are the same.