Using a dynamic contingency theory perspective as the theoretical lens, the purpose of the study is to understand how sales and operations planning (S&OP) can be adapted to maintain a fit with internal and external context, thereby contributing to resilience and overall company performance.
The research is conducted as a single-case study of a leading manufacturing company in Denmark. Rich data spanning several years were gathered, enabling examination of process data to reveal causal relationships and temporal dynamics.
The main finding is that adaptive S&OP design is central to performance and resilience in dynamic business environments. Findings further indicate that an expansion of S&OP scope triggers a sequence of interdependent changes and that scope decisions need to be governed considering S&OP maturity and technological advancements, where advanced planning systems are seen to both enable and constrain scope expansions. The inclusion of new products in S&OP has been found to call for flexibility in several design parameters. Leadership plays a pivotal role in adapting the S&OP process to sustain planning performance.
The research provides new insights into how firms can dynamically adjust S&OP to maintain contextual fit, performance and resilience in operations. It promotes S&OP as an adaptive process and outlines a process framework building on standard S&OP. The study highlights S&OP scope as a critical design parameter, which has been previously overlooked or considered contextual.
