Supply networks and complex adaptive systems: control versus emergence

TLDR

Supply networks are commonly viewed as systems within supply chain management literature. This paper argues that supply networks should be understood as complex adaptive systems that emerge rather than being centrally designed. The authors find that effective management requires balancing control and emergence, favoring positive feedback for autonomous action while avoiding excessive control that hampers innovation and flexibility.

Abstract

Abstract In much of the current literature on supply chain management, supply networks are recognized as a system. In this paper, we take this observation to the next level by arguing the need to recognize supply networks as a complex adaptive system (CAS). We propose that many supply networks emerge rather than result from purposeful design by a singular entity. Most supply chain management literature emphasizes negative feedback for purposes of control; however, the emergent patterns in a supply network can much better be managed through positive feedback, which allows for autonomous action. Imposing too much control detracts from innovation and flexibility; conversely, allowing too much emergence can undermine managerial predictability and work routines. Therefore, when managing supply networks, managers must appropriately balance how much to control and how much to let emerge.