HCBE Faculty Presentations

Event Location / Date(s)

49th Annual Meeting of the Academy of International Business/Indianapolis, IN

Event Name / Location

Proceedings of the 49th Annual Meeting of the Academy of International Business " Bringing the Country Back In: The Importance of Local Knowledge in a Global Economy"

Presentation Date

6-26-2007

Document Type

Conference Proceeding

Description

In this paper we examine the relationship between the concept of social capital and the creation of effective global supply chains. Recent literature cites the effective global supply chain as a source of competitive advantage for firms competing in the global economy. Evidence exists that global firms now compete through the entire supply chain for each industry, raising the bar for strategic consideration. A global supply chain is comprised of multiple organizations, geographically dispersed, but linked by economic transactions, which enable the root firm to satisfy customer needs. The increase in information technology management is critical in coordinating the work of the supply chain partners to make the whole function effectively. As the length of supply chains is increased by outsourcing and offshoring, this paradoxically increasing the difficulties involved in creating an effective global supply chain. We examine the supply chain using exchange theory which includes tenets of relationship theory, social capital and inter-organizational network theory. We suggest a series of propositions designed to test these relationships, focusing in particular on the role of social capital in relation to global supply chains.

First Page

67

Last Page

68

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