A Systems Thinking Based Conceptual Model for Analysing Business Performance in Supply Chain Organisations
Creators: name: Smith, Simon Richard
Publisher: name: College of Business, Law and Social Sciences
Year: 2023
Subjects: Systems Thinking Business Performance Supply Chain Improvement Analysis Conceptual Model Delphi Case Organisation

description: Purpose - The Covid 19 pandemic highlighted the importance of supply chains more than any recent decade, including where the shutting down of manufacturing highlighted the vulnerabilities of supply chains leading to a shortage of goods and supplies. Whilst the importance of supply chains to businesses and consumers is significant, factors such as globalisation and intense competition require organisations and supply chains to improve their performance to remain competitive. In addition, environmental related factors such as sustainability and net-zero carbon have become drivers for organisations and supply chains to reduce waste and become more efficient, thus the need for enhancing the performance of related operations and processes. There are various approaches within the literature for improving supply chain efficiency (vis a vis performance) including the concept of supply chain integration (SCI). Whilst such approaches have proved successful, there are limitations which could be exploited through alternative or complimentary methods. Therefore, this research presents a unique conceptual model for analysing business performance within supply chains, with a view to identifying and implementing improvement opportunities. The high-level conceptual model is designed for implementation by organisations working within a supply chain, with a view to improve business performance for the movement of goods/materials to an end customer. Approach and Methods - The conceptual model was developed through review and convergence of existing literature and frameworks presented by scholars. To verify the model a Delphi study was employed, which incorporated 2 survey rounds seeking views and consensus of the model contents and approach from experts (academic and practitioners). In addition to establishing the level of verification, the Delphi study gave opportunity to enhance the model after the first round, the enhancements were verified in round 2. To further test the model, a case organisation was selected for application of core elements of the model, in order to validate whether the concepts and approach of the model work in practice. Results and Findings - The Delphi study results highlighted a high level of verification, with consensus of a range of questions designed to test various stages of the model, supported by additional comments from qualitative analysis. Upon successful verification, the model was validated (identify whether the model can be applied in practice, in essence, moving from concept stage to actual application) using a case organisation working in the context of supply chain. Selected aspects of the model were applied, with a very successful outcome, primarily that the elements of the model tested worked in application and provided detailed knowledge for further application of the model in the future. Research contribution – The novelty of the research lies in several areas, including the application of an evolved systems thinking theory and method to the context of supply chain that was previously unexplored. The development, verification and validation aspects of the study (in relation to the conceptual model) addressed some of the gaps that exist within the supply chain literature, in particular barriers to supply chain integration. Evolvement of the systems thinking theory gave opportunity (through development of the conceptual model) to further understand the impact supply chain functions have upon each other, particularly in relation to the influence of current performance measurement and use of targets. Further novelty of this study is the convergence of literature to inform the model. The convergence enabled the development of elements unique to the conceptual model, including the design of an Interdepartmental Impact Audit, which combines systems thinking theory and supply chain integration theory, to develop higher levels of holistic knowledge of an organisation and wider supply chain. The convergence of theories enabled the systems thinking theory to be evolved, addressing the gaps through integration within the model, further highlighting the novelty of the study. The practical contribution of the study is a structured approach to review and analyse current influencers of supply chain performance, through adopting a systems thinking approach and systems thinking mindset. Through the iterative approach of the model, the systems thinking mindset will give opportunity for managers to reduce the risk of functional barriers and associated negative impacts on supply chain performance – in essence, a more holistic approach to measuring performance and flow of information to improve supply chain integration and business performance. In addition, the empirical research enabled generation of knowledge to enable identification of scenarios and aspects previously unknown (to the organisation), thus giving opportunity for managers to analyse the potential impacts and implications on supply chain performance and develop strategies to improve performance.