Streams within contingency theory and their applications within logistics and supply chain management
| Stream | Rationale | Conceptualization of fit | Representative paper(s) | Examples from logistics and supply chain management |
|---|---|---|---|---|
| Strategy–Structure–Performance | Rejects the “one size fits all” argument in favour of “contingency determinism”, i.e. that strategy determines structure | Static: Strategy drives the development of suitable organizational structure and processes | Chandler (1962) | Nakano (2015), Gligor (2017) |
| Information Processing View | Addresses deficiencies in the conceptualization of fit. Explicates fit by portraying organizations as information processing systems | Static: Fit indicates that a firms information processing requirements (determined by contingency variables) are matched by its information processing capacity (determined by organizational structure and processes) | Galbraith (1974) | Busse et al. (2017), Luo and Yu (2016), Aben et al. (2021) |
| Configurational View | Addresses criticism of contingency theory for being reductionist and limited to bivariate studies | Static: Fit indicates a constellation of several commonly occurring variables of contextual factors and organizational structure | Meyer et al. (1993) | Sabri (2019), Feizabadi et al. (2021) |
| Strategic Choice | Rejects “contingency determinism”, i.e. that contextual factors determine organizational structure. Strategic choices by a dominant coalition that influences fit | Dynamic: Dominant coalition (e.g. senior management) can make changes to contextual factors and/or organizational structure to establish fit based on personal preferences, performance, institutional factors etc. | Child (1972) | Howard et al. (2007) |
| SARFIT | Rejects “contingency determinism” and partially strategic choice in favour of performance as the main driver for a change of organizational structure to regain fit | Dynamic: Misfits lead to poorly functioning organizations, which in turn leads to poor performance. This puts pressure on reorganizing to regain fit to improve performance | Donaldson (1987) | Silvestre et al. (2020) |
| Dialectics and paradoxes | Rejects the assumption that misfits are always dysfunctional and criticise previous dynamic approaches for their lack of attention to how strategic change occurs. Misfits (or “contradictions” and “tensions” as they are called) are regarded as important drivers of strategic change | Dynamic: Organizations are everchanging and thus fit cannot be viewed as a state of equilibrium. Internal tensions always exist to some extent and these need to be deliberately managed and balanced | Farjoun and Fiss (2022) | Sandberg (2017) |
| Stream | Rationale | Conceptualization of fit | Representative paper(s) | Examples from logistics and supply chain management |
|---|---|---|---|---|
| Strategy–Structure–Performance | Rejects the “one size fits all” argument in favour of “contingency determinism”, i.e. that strategy determines structure | Static: Strategy drives the development of suitable organizational structure and processes | ||
| Information Processing View | Addresses deficiencies in the conceptualization of fit. Explicates fit by portraying organizations as information processing systems | Static: Fit indicates that a firms information processing requirements (determined by contingency variables) are matched by its information processing capacity (determined by organizational structure and processes) | ||
| Configurational View | Addresses criticism of contingency theory for being reductionist and limited to bivariate studies | Static: Fit indicates a constellation of several commonly occurring variables of contextual factors and organizational structure | ||
| Strategic Choice | Rejects “contingency determinism”, i.e. that contextual factors determine organizational structure. Strategic choices by a dominant coalition that influences fit | Dynamic: Dominant coalition (e.g. senior management) can make changes to contextual factors and/or organizational structure to establish fit based on personal preferences, performance, institutional factors etc. | ||
| SARFIT | Rejects “contingency determinism” and partially strategic choice in favour of performance as the main driver for a change of organizational structure to regain fit | Dynamic: Misfits lead to poorly functioning organizations, which in turn leads to poor performance. This puts pressure on reorganizing to regain fit to improve performance | ||
| Dialectics and paradoxes | Rejects the assumption that misfits are always dysfunctional and criticise previous dynamic approaches for their lack of attention to how strategic change occurs. Misfits (or “contradictions” and “tensions” as they are called) are regarded as important drivers of strategic change | Dynamic: Organizations are everchanging and thus fit cannot be viewed as a state of equilibrium. Internal tensions always exist to some extent and these need to be deliberately managed and balanced |
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