Lars-Erik Gadde

Systematic combining: an abductive approach to case research

Abstract Case studies are frequently used in industrial network research. In this article, we discuss the difficulties and opportunities characterizing the case study approach. In particular, we deal with single case research aiming at theory development. For this purpose, we suggest an approach based on ‘systematic combining’ grounded in an ‘abductive’ logic.

The construction industry as a loosely coupled system: implications for productivity and innovation

Previous research suggests that the construction industry is characterized by (1) particular complexity factors owing to industry specific uncertainties and interdependences, and (2) inefficiency of operations. The aim of this study was to analyse the operations and behaviour of firms as a means of dealing with complexity. The observations made indicate that the industry as a whole is featured as a loosely coupled system. Taking this as a starting point, the couplings among activities, resources and actors were analysed in different dimensions. The pattern of couplings builds on two interdependent layers: tight couplings in individual projects and loose couplings based on collective adaptations in the permanent network. It is concluded that the pattern of couplings seems to favour short term productivity while hampering innovation and learning.

Making the Most of Supplier Relationships

Abstract The supply side is on top of the management agenda in most companies, reflecting an increasing strategic attention to benefits that can be gained from cooperation with suppliers. In particular, partnering has been suggested to be the superior solution for making the most of supplier relationships. It is argued in this paper that this recommendation oversimplifies the issues involved and, if followed blindly, may be bad for practice. Developing partnerships with suppliers is resource-intensive and can be justified only when the costs of extended involvement are exceeded by relationship benefits. The article examines the economic consequences following from different degrees of involvement with suppliers. Our conclusion is that a company can be highly involved with only a limited number of suppliers and needs a variety of relationships—each providing its different benefits. Furthermore, it is discussed how the extent of involvement relates to the economic importance of the supplier, the continuity of the relationship and the sourcing strategy of the buying firm. The core of our argument is that the capacity to cope with a variety of relationships in differentiated ways has a profound impact on performance. When the approach of the buying firm shifts from purchasing to making the most of supplier relationships, a richer analytical framework is required to deal with the complexity of the new task.

Strategizing in Industrial Networks

Abstract This paper provides an overview of the implications for strategizing offered by an industrial network perspective and a comparison of this view with strategic management thinking. We argue that it is crucial for a company to relate its activities to those of other firms in order to enhance its performance, and it is through the continuous combining and recombining of existing resources that new resource dimensions are identified and further developed within business relationships. From the standpoint of a single company, strategizing from an industrial network perspective implies that the heterogeneity of resources and interdependencies between activities across company boundaries, as well as the organized collaboration among the companies involved, must be considered simultaneously.

The Multiple Boundaries of the Firm

The notion of firm boundaries has received considerable attention in theories of the firm that address the problems of investment incentives and mitigation of hold-up problems. In this paper we attempt to develop a different approach to the problem of vertical firm boundaries, based on recent advances in the capabilities view of the firm. Our arguments rely on the pioneering insights of Penrose, Richardson and Loasby to elaborate a view of the boundaries determined by the interaction of the firms direct and indirect capabilities with other actors. We develop the notion of indirect capabilities to highlight how firm boundaries respond to the distribution of capabilities in the economy as well as the modes of access to complementary and external capabilities. We conclude that the evolution of firm boundaries must be understood in the context of decisions on how the firm relates to other actors in its environment.

Stability and change in network relationships

Abstract Most studies analyzing stability in relations between supplier and customer firms take the durability of individual dyads as the point of departure. Our empirical results, however, show that if the individual dyad is put in its network context, it is possible to identify quite dramatic changes in seemingly stable relations. We therefore argue that more attention should be devoted to analysis of stability and change from a network point of view.

The Changing Role of Purchasing: Reconsidering Three Strategic Issues

Abstract The competitive pressures that act upon firms have led to major changes in the way in which purchasing is perceived - from a money-saving activity to a resource-planning function. In this paper the authors discuss some of the changes that purchasing has undergone and identify key concerns for the future, as purchasing moves towwards a new strategic role.

System sourcing—opportunities and problems

Abstract System sourcing is receiving increasing attention in purchasing. Previous research has dealt mainly with the opportunities provided by the approach. The aim of this paper is to explore its inherent complexity. System sourcing is analysed with regard to the system definition applied, the division of labour in development and manufacturing tasks, and the capabilities of the customer and the potential suppliers. The most important conclusion is that system sourcing strategies must consider the relationship between the partitioning of the total system in the design phase and the aggregation of the various subsystems in final assembly. The paper ends with four managerial implications.

Information Technology and the Efficiency of Materials Supply - The implementation of EDI in Swedish construction industry

Abstract Electronic data interchange (EDI) and other forms of information technology have attracted a lot of interest as a means for making the materials supply system more efficient. Potential cost savings and the opportunities for increased competitiveness have been recognized by, among others, the large Swedish construction companies. However, despite this interest in EDI communication and several years of industry-wide development work, practical use is still very limited. The purpose of this article is to describe and analyse the potential advantages of EDI, and to identify and analyse implementation problems and barriers that contribute to the slow rate of diffusion.

Coordinated action in reverse distribution systems

Purpose – The purpose of this paper is to address the prerequisites for achieving coordinated action in reverse distribution systems. It is an underlying assumption in distribution, logistics and supply chain management that a higher level of coordination between the actors is superior to a lower, and a higher levels of coordination will in turn lead to increased performance. Coordination requires the actors to implement efficient coordination mechanisms. The separate distribution flows need to be coordinated individually with appropriate coordination mechanisms. Furthermore, actors need to pay close attention to how different coordination mechanisms co‐exist in order to achieve a higher level of coordinated action and superior system performance.Design/methodology/approach – The paper is based on a comparative case study of reverse distribution systems for electrical and electronic products in Norway.Findings – The empirical results indicate that lack of coordination across flows increases costs and redu...