A theoretical model on how firms can leverage political resources to align with supply chain strategy for competitive advantage. Issue 2 (29th March 2022)

• Record Type: Journal Article
• Authors: Grover, Abhay K.; Dresner, Martin
• Is Part Of: Journal of supply chain management. Volume 58:Issue 2(2022)
• Page Start: 48
• Page End: 65
• Publication Date: 2022-03-29
• Subjects: competitive advantage -- legal and regulatory issues -- political actions -- supply chain strategy -- theoretical model; Purchasing -- Periodicals; Materials management -- Periodicals; Industrial procurement -- Periodicals; Business logistics -- Periodicals; Electronic journals; 658.7
• DOI: 10.1111/jscm.12284
• Languages: English
• ISSNs: 1523-2409

Abstract

Abstract: The success of a firm's supply chain strategy depends on resources in the political environment and the supply network in which it operates. If the political environment is not conducive to a firm's supply chain strategy, a firm can either change its supply chain strategy or seek a political environment that is more favorable to its supply chain. This paper examines this second alternative. The structure‐conduct‐performance (SCP) paradigm and the competitive dynamics literature are used to explore the relationships between political actions that leverage supply network resources, supply chain strategies, and firm performance. We extend a well‐known typology of political actions from the strategic management literature and suggest that beyond influencing or complying with the political environment, firms may choose to moderate the political environment (circumvent or submit) or stay neutral (free ride). An integrated model is developed to explore the relationships between political actions and supply chain strategy, along with a series of propositions outlining how political actions can facilitate supply chain risk management strategies. Finally, suggestions are provided for future research.