Exploring the Interconnectedness of Supply Chain Management Theories: A Literature Review

Abstract

This literature review presents a systematic review of popular supply chain management (SCM) theories, focusing on their definitions, early development, and contributions to the field. Seven fundamental theories are analyzed in detail: Resource-Based View, Agency Theory, Transaction Cost Theory, Stakeholder Theory, Balanced Scorecard Theory, Knowledge-Based View Theory, and Strategic Choice Theory. The study traces the origins and evolution of these theories, highlighting their unique foundations and the contexts in which they emerged. The review also discusses the fundamental principles and underlying assumptions of each theory, emphasizing their relevance to SCM and the implications for its practice. The review shows how these theories have helped us understand and improve SCM and how they can improve supply chain performance, promote sustainability, and drive innovation. This thorough analysis is a helpful tool for researchers, practitioners, and policymakers who want to learn more about the different theories that continue to shape and inform the field of supply chain management.