Happy together?. Insights and implications of viewing managed supply chains as a social dilemma

Matthew W. McCarter, Gregory B. Northcraft

Research output: Contribution to journalArticle

Abstract

Supply chains are beginning to displace firms as the competitive entity in the global marketplace. Managed supply chains offer the promise of added value through proactive cooperative efforts among participating firms. However, as a strategic alliance, managed supply chains represent a form of social dilemma: supply chain alliances may fail because participating firms fear opportunistic behavior on the part of other alliance participants, and as a consequence underinvest their information and resources into the alliance. The interdependence structure of the alliance may contribute to this problem. Viewing managed supply chains as a form of social dilemma also identifies solutions that may be implemented unilaterally by individual firms or jointly by the alliance to maintain the "indispensable virtue" of high trust that allows supply chains to effectively create added value.

Original languageEnglish (US)
Pages (from-to)498-511
Number of pages14
JournalJournal of Operations Management
Volume25
Issue number2
DOIs
StatePublished - Mar 1 2007

Keywords

  • Interdependence structure
  • Social dilemmas
  • Supply chain management

ASJC Scopus subject areas

  • Strategy and Management
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering

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