Integrating supply chain and network analyses: The study of netchains

TLDR

A netchain is a set of networks comprising horizontal ties between firms within an industry, sequentially arranged by vertical ties across layers. The paper introduces netchain analysis and posits that value‑creating and coordination mechanisms correspond to distinct interdependency types—pooled, sequential, and reciprocal. Netchain analysis interprets supply‑chain and network perspectives by emphasizing value‑creation and coordination mechanism sources. The authors argue that accounting for simultaneous interdependencies is essential for a deeper understanding of complex inter‑organisational relations and illustrate this with examples of netchain configurations such as buyer‑supplier relationships, IT‑driven collaborations, and macrohierarchy structures.

Abstract

Abstract This paper introduces the concept of netchain analysis. A netchain is a set of networks comprised of horizontal ties between firms within a particular industry or group, which are sequentially arranged based on vertical ties between firms in different layers. Netchain analysis interprets supply chain and network perspectives on inter-organisational collaboration with particular emphasis on the value creating and coordination mechanism sources. We posit that sources of value and coordination mechanisms correspond to particular and distinct types of interdependencies: pooled, sequential, and reciprocal. It is further argued that the recognition and accounting of these simultaneous interdependencies is crucial for a more advanced understanding of complex inter-organisational relations. The paper concludes with an analysis of a set of netchain configuration examples, including buyer-supplier relationships, information technology induced interorganization collaborations, and the introduction of the “macrohierarchy” organization structure.