Applying the strategy‐structure‐performance paradigm to the supply chain environment

The paper extends a central paradigm of the strategy literature to the supply chain environment to foster a better understanding of the elements characterizing strategic decisions that lead to supply chain structural development and performance.

Strategic literature is reviewed to provide a fuller explanation of the strategy‐structure‐performance (SSP) research stream. SSP foundational principles are linked to supply chain management concepts, and synthesized into an explanatory framework. Propositions for future research are presented based upon the framework.

An iterative relationship among internal firm strategy, structure, and performance measurement systems is indicated, implying that firm supply chain strategy should be complementary with that of supply chain partners.

The paper presents a content analysis of existing research and a conceptual framework emerging from it. No data were collected nor were research propositions tested.

The primary implication is “know your supply chain partners”. Do their strategies mesh – either as consistent or complementary – to your own firm's supply chain strategy? Strategic alignment is a necessary precursor to deployment of an effective supply chain structure.

The paper shows that SSP theory can be extended beyond the firm to the complex supply chain environment.