The building blocks of a supply chain management theory: Using factor market rivalry for supply chain theorizing

Abstract

As the supply chain discipline matures, opportunities emerge to develop or define theories that are specific to supply chain phenomenon. The current research specifies characteristics that we offer which comprise the building blocks of supply chain theory. These characteristics include the flows of material through a supply chain network, the temporal management of these material flows, the dyadic and triadic interactions of firms within the supply chain network, and the outward focus on supply chain management (SCM), in other words a supply chain orientation, of firms in a supply chain. Further, recognizing that supply chain theories must contain the previously identified characteristics, we offer Factor Market Rivalry (FMR) as a theory of SCM. FMR refers to intense battles for resource positions that are needed to manufacture, provide, or deliver firm products or services. We argue that FMR only occurs within supply chain phenomena. The piece concludes with a future research agenda based upon the practical implications of further developing FMR as a theory of SCM.