Abstract

The purpose ofthis paper is to explore a new set of dynamic supplyrelationship portfolio that is linked to the different trajectories ofindustrial evolution, and thus to facilitate the identification of the most fitsupply relationship strategy that best survives the industry evolution.  The research approach is based on a crossfertilisation of supply relationship portfolio analysis and industrialevolutionary modelling.  Thirteenorganisations’ cases from diverse industrial sectors have been studied usingabductive methodology leading to the development of a new portfolio model. The research has positively verified that thedominant characteristics of an established supply relationship in a givenmatured supply chain are related to its current industrial evolutionarytrajectories with considerable significance.The model also provides a strategicguidance to managers for their decision making in supply chain relationshipre-structuring.    

Keywords  –  Relationshipmanagement, supply chain management, industrial evolution 

Paper classification – Research paper

1.  Introduction 

So much has been talkedby so many for so long about the supply relationship portfolio management andyet it is again the topic of this research. Nonetheless, there is a fundamental reason behind this.  In 1983 Professor Kraljic proffered a purchasingrelationship portfolio (Kraljic 1983) that underpins much of the portfolioapproaches that follows and draws increased attention thereafter from theacademics and practitioners alike.  However, those portfolio approaches appear tohave not provided adequate basis for decision-making in the strategicrelationships under different industrial environment.  Many cases of relationship inadequacy haveled to a considerable doubt that there could be other underlying dimension thatneeds to be taken into the portfolio modelling. Inspired by the new research development in Harvard University BusinessSchool about the industry evolution models (McGahan, 2004), this paper attemptsto explore a new dimension on the different industrial evolutionarytrajectories, and try to take a new portfolio approach that is based on it.  

Hence, the keyobjective of this research to explorea set of new dynamic supply relationship portfolio that is linked to thedifferent trajectories of industrial evolution, and thus to facilitate the identificationof the most fit supply chain strategy that best survive the industry evolution.  Under this objective this paper will alsoaddress the following related research questions: