Intangible supply chain complexity, organizational structure and firm performance
The International Journal of Logistics Management
ISSN: 0957-4093
Article publication date: 29 January 2021
Issue publication date: 15 October 2021
Abstract
Purpose
The purpose of this paper is to conduct a large-sample empirical examination of how intangible supply chain complexity impacts firm performance in light of a firm's organizational structure.
Design/methodology/approach
The study uses panel data from 2,580 Indian manufacturing firms and constructs empirical proxy for intangible supply chain complexity, i.e. CHQ distance from major cities. The proposed conceptual model is grounded in the dynamic capability view (DCV) and social network theory (SNT). Multivariate regression analyses are performed to investigate the effect of intangible complexity on firm performance.
Findings
Results show that intangible supply chain complexity, as proxied by “CHQ distance from major cities”, negatively affects firm performance and a firm's organizational structure plays an important role in conceiving CHQ locational strategies. Firms with interconnected supply chain and social network (e.g. business group firms) have a higher propensity to locate their CHQs farther away from major cities, and business group firms that have more distantly located CHQs experience better financial performance compared to independent firms (with less network resources).
Originality/value
In light of the supply chain literature and relevant theories, the study conceptualizes intangible supply chain complexity as “CHQ distance from major cities” and deepens our understanding of the relationship between intangible complexity and firm performance in light of organizational structure. Further, it develops an objective understanding of intangible supply chain complexity by relying on secondary panel data.
Keywords
Acknowledgements
The authors would like to sincerely thank the two anonymous reviewers and editors for their pertinent comments and suggestions for this paper, which not only improved the quality but also the presentation of this paper. The authors want to thank IIT Kharagpur for providing all the resources to carry out this research.Funding: The authors received no financial support for the research, authorship and/or publication of this article.
Citation
Pant, P., Dutta, S. and Sarmah, S.P. (2021), "Intangible supply chain complexity, organizational structure and firm performance", The International Journal of Logistics Management, Vol. 32 No. 4, pp. 1214-1241. https://doi.org/10.1108/IJLM-06-2020-0239
Publisher
:Emerald Publishing Limited
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