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Theoretical basis of supply management: the netwerk theory in supply management

Wellenbrock, M. (2013) Theoretical basis of supply management: the netwerk theory in supply management.

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Abstract:During the last decades several so called ‘grand theories’ have been proposed to underpin supply management and purchasing. They are meant to progress these disciplines by providing a theoretical basis to the field. Next to theories as for instance the resource based view, the resource dependency theory, the transaction cost economics or the agency theory, the network theory has been put on the agenda of researchers. The network theory describes the relationships between companies located in the same supply chain. The concept developed over time from the simple consideration of relationships or strategic alliances between just two companies, towards the explanation of relationships between several counterparts within a supply network, are they suppliers, organisations, buyers, customers or manufacturers. However, no clear consensus have emerged in the field of the contribution of the theory towards supply management and purchasing yet. Therefore, this literature review aims to provide insight in the applicability of the network theory for supply management and purchasing. Besides describing general facts about the theory, namely the history, the underlying assumptions, the description of an empirical test retrieved from the literature, a core concept of the theory is developed in order to provide insight in the most important hypotheses and variables of the theory. These factors helped to reveal the contribution of the theory for purchasing and supply management. For this, a 3-phase model including four major decision points for purchasers was developed to show the applicability of the theory for each aspect. Lastly, a matrix was developed in order to create an overview of the most important contributions which can be used by managers and purchasers interested in the field of networks in supply management
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration BSc (56834)
Keywords:Network theory, Supply management, Grand theory
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