How can supply networks increase firm value? A causal framework to structure the answer
First online: 11.08.2009
Cite this article as: Otto, A. & Obermaier, R. Logist. Res. (2009) 1: 131. doi:10.1007/s12159-009-0015-8
The recent literature in the field of supply chain management emphasizes the role of inter-organizational networks and the integration of vertical reproduction networks (supply chains) in particular as a key factor for value creation. However, the literature includes little empirical evidence. This situation suggests the need to appraise investments in such networks or supply chains carefully. How can a decision maker reliably assess the effect of investing in inter-organizational network arrangements on firm value? This article takes up this issue and suggests a framework consisting of five components to help answer the question. The task of the framework is to support the structuring and revelation of the causal chain between investments in the network on the one hand and the effect of these investments on firm value on the other hand. The article develops and explains the framework in detail and later on relates extant literature to its components. A finding of this article is that potential causal chains from changes in a supply chain or supply network to firm value can be quite long and hypothetical.
Supply chain integration Interfirm relationships Networks Causal framework Cause-and-effect-relationships Value creation Value-based management