Framing the interplay mechanisms between structural and dynamic complexity in supply chains

Abstract

This paper explores the interplay between structural and dynamic complexity factors, uncovering the mechanisms that underpin it. Four in-depth inductive case studies, which comprised semi-structured interviews with senior operations and SC managers as well as the use of companies’ official documents and other secondary data, were carried out. The study offers a deep understanding and provides rich empirical descriptions of the interplay between structural and dynamic complexity factors. A general framework to represent different aspects of this interplay is also introduced, i.e. the House of Supply Chain Complexity diagram; as a practical tool for mapping the complexity factors and inferring the prevailing interplay mechanisms in specific cases. The results show four interplay mechanisms between structural and dynamic complexity factors: silo-thinking, localism, limited adaptability and increased uncertainty. Testable propositions are presented with relevant insights on the interplay between a wide range of structural and dynamic complexity factors. Research implications relate to: (i) a general framework usable to further investigate interplay mechanisms at factors level and in different SC contexts and (ii) theory building on the suggested interplay mechanisms. We contribute to enhance contingency research claiming for the importance of considering the cumulative effect of contingency factors on SC performance. The results also suggest that managers can accommodate the mechanisms of silo-thinking and increased uncertainty by information sharing and organizational means, but the interplay mechanisms of localism and limited adaptability appear to be more related to the physical structure of SC elements and thus mainly manageable by reducing complexity, i.e. reducing the factors involved in the interplay.

Keywords:

• Structural complexity
• dynamic complexity
• supply chain complexity
• interplay mechanisms
• case-based research

Acknowledgements

The authors would like to thank the managers at the four manufacturing organizations that have participated in this study, who have generously provided their time and data.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Pablo Fernández Campos

Pablo Fernández Campos is a Business Consultant and Designer. He earned his PhD in Management, Economics and Industrial Engineering at the School of Management in Politecnico di Milano. He holds an MSc in Industrial Management and in Mechanical Engineering. His research interest is in the area of operations and supply chain management, with an especial interest in complexity management and in risk and resilience. He has recently authored several journal articles that are published or under review in various operations management journals.

Luisa Huaccho Huatuco

Luisa Huaccho Huatuco is a Reader in Operations Management at the University of York. Her current research interests at firm and supply chain levels within the manufacturing context include: sustainable supply chains, management of disruptions to distribution/logistics, high value manufacturing and complexity in the supply chain. She has disseminated the results of her research using various routes including: internationally ranked academic journals and several international conferences. She has also been fostering links with researchers in Latin America and Europe.

Paolo Trucco

Paolo Trucco is Full Professor of Industrial Risk Management at the School of Management, Politecnico di Milano, where he is also Director of the PhD Programme in Management Engineering. His research interests concentrate in operational risk management and resilience of complex socio-technical systems and global supply chains, with expertise in the manufacturing, oil & gas, energy, transportation and healthcare sectors. He is scientific advisor of DG Home Affairs (European Commission) and of the Lombardy Region Government (Italy) on Programmes for Critical Infrastructure Protection and Key Resource Supply Chain Resilience.