Linking corporate strategy and supply chain management

The paper researches the nature of supply chain strategy. It represents one stage of an on-going research initiative aimed at providing a framework for systematic understanding of the linkages between corporate strategy making and supply chain management (SCM).

The paper explores the theory and literature related to strategic management and SCM. Four generic levels of strategy are linked to supply chain management, and synthesized into an explanatory supply chain strategy-framework. Propositions for future research are presented based on the framework.

The paper shows that most of the literature on supply chain strategy relates to the functional level. Largely undiscovered are the links between corporate and business unit strategies with supply chain strategies and capabilities, especially on the network level.

A fit between corporate strategy and SCM positively impacts the performance of a firm. The framework developed can be used by managers to assist in thinking through possibilities to link supply chain capabilities with the corporate strategy making processes.

By distinguishing between functional, business, corporate, and network levels, the paper provides a framework for future research to enhance knowledge related to supply chain strategies and capabilities.