Supply chains behaving badly : a dynamic model of inter-organisational supply chain exchange behaviour under rational, relational and chaotic paradigms

Abstract

Supply chain exchange relationships are complex and sometimes chaotic sociological and organisational phenomena. This complexity is compounded by the boundary spanning necessity of forming supply chain partnerships that are further exacerbated by goal divergence and asymmetric information. One of the main questions for consideration is how these dyadic exchange relationships are maintained and develop over time in response to the various channel behaviours of the actors (the buyer and seller)? In particular, exchange relationships are theorised to be sensitive in some degree to attempts at economic appropriation, and conversely coordinative efforts. Such efforts manifest themselves into the mutually opposing forces broadly labelled as opportunistic and collaborative behavioural paradigms. Drawing from the concepts of Systems and Chaos/Complexity theories, it is theorised that the movement from one form of relational arrangement to another is enacted in a non-linear and dynamic manner with periods of relational equilibrium disrupted by bifurcations resulting in the emergence of new levels of relationship. However, not all exchange relationships are susceptible to constant change, rather, there should be some threshold barrier or relationship inertia that must be overcome before a bifurcation occurs. Yet what is not known is how strong these bonds are to the enactment of opportunistic and collaborative partner behaviours. Hence, 189 manufacturing supply chain relationships were survey-interviewed in order to determine the impact that collaborative and opportunistic behaviours have on supply chain relational movement. The results show that generally exchange relationships do in fact change in response to these enacted behaviours, and that actual levels of supply chain behaviour over a range of 12 variables could be measured. Indeed, the level of opportunistic behaviour experienced by the sample was disturbing. In addition, the level of tolerance (zone of tolerance) for specific behaviours was measured for the first time in the field. Overall, it was found that supply chain exchange relationships do indeed evolve in a non-linear dynamic manner in response to opportunistic and collaborative manoeuvres by the dyadic actors. Finally, these ideas were summarised in the Dynamic Relational Development (DRD) concept that explains how supply chain relationships dynamically change. In addition, the dualistic nature of the collaborative versus opportunistic behaviour choice for exchange actors is tentatively reconciled by the deontological approach of the Supply Chain Citizen theory offered in this research.