Supply chain management knowledge and organizational structure

Scope and method of study. The purpose of this study is to examine relationships between dimensions of supply chain management (SCM) knowledge and elements of organization structure. The study also investigates direct effects of specific context variables on the elements of organization structure, as well as the moderating effects of these context variables on the relationships between dimensions of supply chain management knowledge and elements of organization structure. Participants in the study are 225 professional purchasing executives representing 208 business organizations. Hypotheses are tested and relationships examined using regression analysis.; Findings and conclusions. Upstream SCM knowledge predicts decentralization, but only for firms operating in environments of low uncertainty or with products low in complexity; no relationship is found between internal SCM knowledge and decentralization; and downstream SCM knowledge inversely predicts decentralization, except for small firms or firms with highly complex products. Organization size also predicts decentralization. In addition, upstream SCM knowledge predicts performance control, except for firms operating under low uncertainty or with highly complex products; internal SCM knowledge predicts performance control under all conditions tested; and downstream SCM knowledge predicts performance control only for firms with highly complex products. Size and product complexity also each predict performance control. Further, upstream SCM knowledge predicts specialization, except for large firms; and internal and downstream SCM knowledge do not predict specialization; whereas both size and product complexity do predict specialization. Finally, upstream SCM knowledge predicts integration, except for firms with highly complex products; internal SCM knowledge predicts integration under all conditions tested; and downstream SCM knowledge predicts integration only for firms operating under high uncertainty or with highly complex products. Size and product complexity also each predict integration.