Product Variety, Sourcing Complexity, and the Bottleneck of Coordination
Product Variety, Sourcing Complexity, and the Bottleneck of Coordination
复制标题
产品多样性、采购复杂性和协调瓶颈
DOI:
10.2139/ssrn.2833551
复制
发表时间:
2016
期刊:
影响因子:
--
通讯作者:
X. Wan
中科院分区:
文献类型:
--
作者:
Yue Maggie Zhou;X. Wan
This paper studies the coordination burden for firms that pursue variety as their main product strategy. We propose that product variety magnifies the tension between scale economy in production and scope economy in distribution, giving rise to complex intra-firm sourcing relationships. Sourcing complexity worsens coordination performance for the firm and poses a dilemma for organization design: A hierarchical structure with sourcing hubs reduces sourcing complexity but can create bottlenecks at the hubs. We empirically examine operations data for about 300 distribution centers within a major soft drink bottling company in 2010–2011. Results support our hypotheses, illuminating the source of complexity in multi-product firms and the challenge for organization design in managing product variety.