IMPACT OF SOCIAL NETWORKS ON SUPPLY CHAINS: A DYNAMIC INTERACTION SEEN THROUGH THE PRISM OF PROXIMITY

Abstract

The diversity of ties existing within the supply chains can lead to the emergence of a plurality of networks at both the organizational and individual levels. Multifaceted networks are likely to coexist, interact and affect how supply chains function. In this paper, we study supply chains from a microfoundation perspective, which leads us to an explanation of interpersonal relationships. An analysis of networks of individuals by the use of the polymorphic concept of proximity allows us to answer the following research question: how do different social networks influence supply chains in a dynamic interaction environment? This qualitative study uses a mutli-client logistics service provider and its partners as the field of investigation. A proximity analysis then describes the dynamics of interpersonal relationships and their influence on the supply chain. The findings reveal the existence of two types of social networks within the supply chains studied. The anchored social network contributes to develop both reactivity and agility of the supply chain. The efficient social network rather affects its economic performance. The formal organization of the supply chain also influences the behaviour of the actors and their relationships in a kind of dynamic interaction game. The supply chain focused on reactivity and agility gives more autonomy to the individual actions of adaptable actors, while the supply chain seeking enhanced performance in terms of costs requires compliance and integration of individuals in structured and codified relationships. This dynamic creates the impression of a combined strengthening of the networks studied.