Supply Chain Management as a Source of Competitive Advantage A Case Study of Three Fast-growth Companies

Abstract

Background & problem: It is known that supply chain management is, as a research subject, still in its infancy, and in a phase of strong development. This reflects upon the usage of advanced logistical applications in companies; not all are aware of the possibilities that modern logistics could bring to their operations. To recognise the significance of logistics, companies have to understand that it could be a source of competitive advantage. Additionally, fast-growth companies often argue that logistics could limit their growth. This is especially true when companies expand internationally; strategic decisions concerning logistics must be well considered. The main research question of this thesis is: “Can one of the sources of competitive advantage in fastgrowth companies be found in supply chain management?” Purpose: The purpose of this thesis is to conduct both a theoretical and an empirical study of two fields of research: the resource-based view (RBV) and supply chain management (SCM). The theoretical study has two main stages: RBV describing competitive advantage and SCM practises as a source of competitive advantage. In the empirical study the authors investigate if the case companies utilise the supply chain practises that are pointed out as a source of competitive advantage in the literature. Delimitations: The logistical issues in this thesis are limited to a strategic level. The case companies are expected to trade with physical products, in order to fulfil the requirement of having logistical functions. The theoretical framework is limited to SCM and competitive advantage issues within RBV. Methodology: A literature survey has been carried out in order to understand the concepts of RBV and SCM. Furthermore, a case study has been conducted in three fastgrowth companies by researching whether the companies utilise the practises suggested in the literature. Before the case studies were carried out, secondary information about the case companies was collected. With this knowledge in mind, interviews were planned and implemented. Results and conclusions: The authors have recognised seven supply chain practises from the literature which could be a source of competitive advantage. In the case studies, some of these practises could be identified within all of the companies. The authors' conclusion is that it is worthwhile for the case companies to utilise and try to develop supply chain practises. Suggestions for further research: The authors believe that it would be interesting to conduct research with a wider sample of companies, either a quantitative research of the seven practises by questionnaire, or focusing on one of them in detail. Another idea is to analyse one of the case companies from the resource-based view, broadened from logistics to find a source of competitive advantage.