Enterprise logistics and supply chain structure: the role of fit

TLDR

The emergence of the extended manufacturing enterprise—a globally dispersed collection of strategically aligned organizations—has highlighted the importance of coordinating information and material flows across supply chains, especially in the information age. This study explores and develops the concept of enterprise logistics, examining how an organization’s integration capabilities fit its supply‑chain structure and testing whether globally dispersed network firms adopting these practices achieve higher performance. The authors employ a configurations approach, treating enterprise logistics as a tool that integrates logistics activities within and between the strategically aligned organizations of the extended enterprise. Enterprise logistics is essential for coordinating geographically dispersed supply‑chain operations, yet for pure network structures high integration alone does not guarantee improved organizational performance. The paper concludes with managerial implications and directions for future research.

Abstract

Abstract The emergence of the extended manufacturing enterprise, a globally dispersed collection of strategically aligned organizations, has brought new attention to how organizations coordinate the flow of information and materials across their supply chains. This paper explores and develops the concept of enterprise logistics [Greis, N.P., Kasarda, J.D., 1997. Enterprise logistics in the information age. California Management Review 39 (3), 55–78] as a tool for integrating the logistics activities both within and between the strategically aligned organizations of the extended enterprise. Specifically, this paper examines the fit between an organization's enterprise logistics integration capabilities and its supply chain structure. Using a configurations approach, we test whether globally dispersed network organizations that adopt enterprise logistics practices are able to achieve higher levels of organizational performance. Results indicate that enterprise logistics is a necessary tool for the coordination of supply chain operations that are geographically dispersed around the world. However, for a pure network structure, a high level of enterprise logistics integration alone does not guarantee improved organizational performance. The paper ends with a discussion of managerial implications and directions for future research.