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The Effects of Product Complexity and Supply Base Complexity on Supply Chain Performance

Anekal, Prashanth
http://rave.ohiolink.edu/etdc/view?acc_num=toledo1404385974

Abstract Details

2014, Doctor of Philosophy, University of Toledo, College of Business and Innovation.
Over the years, we have seen that products manufactured and the supply base of many manufacturers have become more complex. The reasons for the increase in complexity are many. Prominent ones are (a) advances in manufacturing technology; (b) customers' demand for new and improved product functionality; and (c) manufacturers' need to differentiate themselves from their competitors. The resulting increase in complexity can however have negative implications on the performance of the supply chain. As products and supply bases become more complex, the task of managing these complexities and achieving the desired results becomes more challenging. Inability to manage these complexities results in lower performance throughout the supply chain. Thus, we can say that product complexity and supply base complexity are both "necessary evils". Manufacturing literature has recognized that product complexity can have negative effects on plant performance. Emerging studies have explored the negative impacts of product complexity and supply base complexity. However, most of these studies are either conceptual or address narrow aspects of performance, such as delivery performance. In order to bridge this gap, the first aim of this study is to examine the impact of product complexity and supply base complexity on efficiency and responsiveness of the supply chain. Secondly, the study examines the mediating impact of coordination mechanism on the relationship between product complexity / supply base complexity on supply chain performance. Operational coordination and strategic coordination are proposed to be the mediating variables. Thirdly, recognizing the fact that complexity is unavoidable and inevitable in certain circumstances, the study proposes a set of mechanisms that help supply chains improve coordination and thus reduce the negative effects of complexity on supply chain performance. The proposed research model was tested using data collected by a large scale survey of manufacturing firms. The survey was answered by 270 respondents in various managerial roles in purchasing, operations and supply chain functional areas. The study developed and tested measurement instruments for the constructs proposed in the research model. Instruments were tested for reliability and validity using the collected data. The proposed research model was analyzed using Structural Equations Modeling (SEM). The results of the study suggest a negative impact of product complexity and supply base complexity on supply chain performance. The data however shows that product complexity does not have a direct impact on supply chain performance, but rather has an indirect impact through supply base complexity. This indicates that product complexity has an effect on the nature and structure of the supply base. The role of coordination mechanisms (operational and strategic) as a mediator between complexity and supply chain performance was not supported by the data. This indicates a possible moderating role for coordinating mechanisms in this relationship. However, the extent of coordination between supply chain partners was found to be a key determinant of supply chain performance. The role of IT based and non-IT based mechanisms in mitigating the negative impact of complexity on supply chain performance was found to be effective in general. This study thus makes contributions to theory by: (a) developing a research framework that draws from multiple theories to identify the relationships between product complexity, supply base complexity and supply chain performance; (b) identifying the various components of product and supply base complexity in a supply chain system; (c) identifying the strategic and operational roles of coordination mechanisms; and (d) developing and validating measurement instruments that can be employed in future studies. This study can be of interest to supply chain practitioners since it identifies the effects of complexity in the supply chain and identifies mechanisms to manage the effects of complexity in the system. Insights from this study are expected to improve managerial effectiveness in the supply chain.
Monideepa Tarafdar (Committee Co-Chair)
Ragu-Nathan T.S. (Committee Co-Chair)
Thuong Le (Committee Member)
Abdollah Afjeh (Committee Member)
242 p.
Business Administration; Management
Complexity, Product Complexity, Supply Base Complexity, Operational Coordination, Strategic Coordination, Supply Chain Efficiency, Supply Chain Responsiveness, Inter-Organizational Systems

Recommended Citations

Citations

  • Anekal, P. (2014). The Effects of Product Complexity and Supply Base Complexity on Supply Chain Performance [Doctoral dissertation, University of Toledo]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=toledo1404385974

    APA Style (7th edition)

  • Anekal, Prashanth. The Effects of Product Complexity and Supply Base Complexity on Supply Chain Performance. 2014. University of Toledo, Doctoral dissertation. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=toledo1404385974.

    MLA Style (8th edition)

  • Anekal, Prashanth. "The Effects of Product Complexity and Supply Base Complexity on Supply Chain Performance." Doctoral dissertation, University of Toledo, 2014. http://rave.ohiolink.edu/etdc/view?acc_num=toledo1404385974

    Chicago Manual of Style (17th edition)

toledo1404385974
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© 2014, all rights reserved.
This open access ETD is published by University of Toledo and OhioLINK.