APPLYING THE O.E.S. PARADIGM TO THE SUPPLY CHAIN

Abstract

This paper develops a conceptual model which explains the performance of supply chain members. Specifically, it applies the performance model called the organization-environment-strategy (OES) paradigm. The performance of supply chain members is influenced by supply chain uncertainty or the unpredictability of the actions of those sectors which supply inputs to or receive outputs from the organization. Supply chain uncertainty is the driver for firms to implement a collaborative strategy. Moreover, such unpredictability requires a more flexible structure to support collaboration within and across the organizations. Because of unpredictability, firms tend to work closely together with their partners and adapt their structure to be more flexible to fit their environment. Consequently, those firms that can align their strategy and structure with the environment will be able to increase their competitive advantage or outperform their competitors. Hence, their performance will have improved. It remains for other researchers to test this model.