Research paper

A proposed integrated framework for analysing supply chains

Kevin Burgess
School of Marketing, RMIT University, Melbourne, Australia, and

Prakash J. Singh
Department of Management, The University of Melbourne, Melbourne, Australia
Abstract Purpose Organisations need to have a profound level of understanding of their supply chains if they are to successfully nd sources of competitive advantage within them. Current methodologies for analysing supply chains, such as the Supply Chain Operations Reference (SCOR) model, are not sufciently comprehensive, particularly when it comes to understanding the complex social and political factors that are an integral part of any supply chain. This paper aims to use a case study of a supply chain from the public utility industry sector in Australia to develop an integrated framework for analysing supply chains within a multi-disciplinary and multi-method research paradigm. Design/methodology/approach The case study supply chain was mapped with the SCOR modelling tool which provided insights into the physical characteristics and value points along the supply chain. Findings Analysis of the SCOR model map also helped identify 31 key actors in the chain, who were then interviewed in depth. These interviews provided insights into the social and political factors which determined the supply chain performance. Originality/value The outcome of this study is a framework that provides two primary benets. First, it shows the relationships between relevant variables from different disciplines (i.e. corporate governance, infrastructure, operations knowledge, social climate and innovation), and how they impact on performance. Second, the framework provides a way forward in synthesising multi-disciplinary and multi-method research into a coherent whole. Keywords Public sector organizations, Social factors Paper type Research paper

Introduction
The area of supply chain management (SCM) has seen a rapid increase in interest among many organisations. Numerous reasons have been offered for this. Firstly, a SCM focus has provided rms with competitive advantage given the diminishing returns that are being derived from intra-enterprise improvement initiatives (Maloni and Benton, 2000). Secondly, a restructuring of industries as a result of technological discontinuities has led to natural evolution to SCM (Reddy and Reddy, 2001); Thirdly, SCM has been seen as a practical response to globalisation (Weber et al., 2000), deregulation and dynamic competitive markets (Christopher, 1998). Finally, dependencies that rms have on others as a result of developments such as lean operations, outsourcing and JIT have intensied, leading rms to engage in SCM
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more strongly (Burt et al., 2003). When viewed from any of these perspectives, SCM is clearly seen as a means of generating innovations which can improve performance. While the imperative for SCM orientation is clear, what remains unclear is the actual factors which generate supply chain innovations. A review of the literature revealed that the overwhelming focus is on technological sources of innovation, particularly those that involve electronic commerce. Closer examination of the literature shows three distinct forms of bias: disciplinary bias towards the elds of economics, logistics and purchasing; industry bias towards the automotive, consumer goods and retail trade areas; and, research bias towards the positivist tradition (Arlbjrn and Halldorsson, 2002; Ho et al., 2002). We contend that this unbalanced focus on technical and rational perspectives has resulted in the ignorance of potential innovations that could result from understanding the complex social and political issues that are an integral part of any supply chain. If organisations are to generate supply chain innovations, then, as a rst step, they need to understand the dynamics of the supply chains that they are involved in (Keller et al., 2002).
Received: 18 August 2004 Accepted: 23 October 2005

Supply Chain Management: An International Journal 11/4 (2006) 337 344 q Emerald Group Publishing Limited [ISSN 1359-8546] [DOI 10.1108/13598540610671789]

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A proposed integrated framework for analysing supply chains Kevin Burgess and Prakash J. Singh

Supply Chain Management: An International Journal Volume 11 Number 4 2006 337 344

However, we contend that the current methodologies that are being used for analysing supply chains fail to provide comprehensive accounts of the relationships between players in any given supply chain. New methodologies that are able to integrate technical, economical, rational, social and political factors would be of benet to practitioners who have to deal with the complexities inherent in supply chains. In this study, an attempt is made towards producing a more integrated supply chain analysis methodology in part by looking to overcome the biases mentioned above. A multidisciplinary team was formed to study a supply chain consisting of the manufacture, transportation and installation of a particular type of steel product in a public utility company. These three functions are carried out by three separate rms. The study involved producing maps of the supply chain using the SCOR model version 5 (The Supply Chain Council, 2004), conducting 31 in-depth interviews with key personnel from two of the three organisations, as well as reviewing a plethora of published secondary data. The focal rm for this research was the nal user of the steel product. The analysis focused on the big picture issues of corporate governance, infrastructure, operations knowledge, social climate and innovation. These broad issues were selected for investigation, a priori, by the researchers to see how they impacted upon the performance of the supply chain. Using the grounded theory approach (Glaser and Strauss, 1967), the interview data were analysed to inductively develop sets of key constructs for each of these broad issues. It was then possible to combine the constructs and broad issues into a single framework. We believe that this framework provides a path towards the development of a methodology that can be used to generate a comprehensive understanding of supply chains. The next section provides a background to each of the broad issues investigated. This is followed by a description of the study approach used. The results of the study are then presented. The paper concludes by summarising the ndings of the study and drawing implications for practitioners and researchers in the area.

Background
SCM is often portrayed as involving many elements (Mentzer et al., 2001; Larson and Halldorsson, 2002). For this reason, rms need to understand and master SCM if they are to successfully transform themselves and survive into the future (Bowersox et al., 2000). However, how such mastery is gained remains less obvious. Distinct biases in the literature are possibly retarding the development of such knowledge. Apart from a lack of consensus on the theoretical and historical determinants of SCM, there is also considerable bias toward extrapolating principles from consumer markets (most notably automotive and computer industries) to other types of supply chains. Such research has most often been conducted within a single discipline and generally within a positivist paradigm. While the SCM literature stresses the importance of social and political factors and places emphasis on the need for collaboration and trust, research in such topics is still relatively scant. Furthermore, research on how industrial markets using mature technologies can use SCM principles to improve their effectiveness is even more scant. There is considerable scope to widen the SCM research 338

agenda in terms of comprehensiveness in order to better meet present and future challenges. Chapman et al. (2002) claim the perceived extent of change due to innovation can be measured at four levels. The rst, incremental, involves small step changes such as that that can be achieved by a team working within a narrow functional area. The second, architectural, refers to reconguration of existing system components. The third, radical, involves large step improvement in either process or market activities. The fourth, transformational, covers fundamental changes to the nature of the business or society. It is not clear what types of innovations, or what level of change, SCM generates. Successful SCM involves horizontal cross functional integration both across and within rms. These arrangements involve relinquishing control and distancing operations from traditional functional hierarchies. Such change is accomplished by moving away from formal arrangements and developing inter-organisational relationships which increase trust and collaboration (van Hoek, 2001). The interplay of additional variables which support or inhibit the ability of the social system to innovate has not been examined in any depth. Such variables include governance structures, representational models of supply chains, power, and infrastructural design (e.g. buildings and information systems). Learning appears to have received more attention (Bessant et al., 2003), however the depth of research and narrow range of industry settings suggests there is still considerable work to be done in this area. The multidisciplinary nature of SCM (New, 1997) may generate additional difculties which make learning far more complex than might otherwise be expected. Whipple et al. (1999) claim that the governance structure chosen impacts directly upon supply chain performance. Their basic argument is that hybrid organisations have started to emerge between the traditional vertically integrated and market exchange models in line with the more sophisticated requirements of working more closely with suppliers. They also highlight the importance that information ows play in such governance and how asymmetries of information could impact upon effective governance. While governance may address the legal structures which exist between rms in a chain, operations need to be represented in more tangible forms. Specically, SCM seeks to improve the linkages between rms. Process mapping has been the dominant approach used to represent the linkages both between and within rms. The prime reasons for creating a map are to link corporate strategy to supply chain strategy, distribute key information for survival in a dynamic environment, and offer a basis for supply chain redesign or modication (Gardner and Cooper, 2003). However, there does not yet exist a universal set of mapping conventions to represent supply chains (Gardner and Cooper, 2003, p.37). The SCOR model is the nearest mapping approach to a defacto standard (Huan et al., 2004; Lockamy and McCormack, 2004). It integrates the concepts of business process reengineering, benchmarking and process measurement into a cross-functional framework involving purchasing, operations, and logistics functions (Huan et al., 2004). It focuses on transactional efciency rather than relationships with customers and suppliers (Lambert et al., 2005). Several researchers have highlighted the need to use other frameworks in conjunction with the SCOR model in order to develop comprehensive understanding of aspects of supply chains that

A proposed integrated framework for analysing supply chains Kevin Burgess and Prakash J. Singh

Supply Chain Management: An International Journal Volume 11 Number 4 2006 337 344

are of interest (Ellram et al., 2004; Kirchmer, 2004; Lambert et al., 2005). Power relationships are also a major issue in SCM, as a dominant rm within the chain can use its market power to coerce as well as collaborate with partners. Maloni and Benton dene power as the ability of one rm to inuence the intentions and actions of another rm (2000, p.53). Their nding matches much of the inter-organisational networks literature, specically: that coercive power holds a negative association with cooperation; trust and commitment increase with expanded interdependence; and, inter-rm asymmetry will defeat both trust and commitment. They conclude that most rms are not completely aware of the broad scope of power dimensions and need to better understand how power inuences performance. The supply chain literature often makes reference to virtual teams. However, this is also an evolving area of research with considerable speculation as to what type of support is needed in terms of technology and building designs to assist such teams. Castells (1996) has highlighted the concept of space of ows created by the information revolution and the need to generate an architecture which expresses this new reality. The case study described in the paper seeks to address some of the biases mentioned earlier by exploring a supply chain which has not altered in any signicant way since 1983 and which involves three mature industries steel manufacturing, transport and public utilities. It specically seeks to examine what role the social system can play in improving a stable supply chain which uses mature yet expensive technology and employs staff who have operated in the chain in excess of ten years. It also examines the perceived impact and interplay of factors such as governance structures, decision support systems and the physical design of buildings and other artefacts in supporting the social system to improve the performance of the supply chain.

Research method
Given the complex nature of issues that are of interest, it was decided that an exploratory qualitative research methodological design in the form of a case study would be employed. Specically, the guidelines for good case study design and conduct provided by Yin (2003) was used. The supply chain case study analysed in this paper involved a manufacturer of steel products, a transport provider and nally a public utility company, all based in and operating in different states of Australia. The manufacturer is a publicly listed company that was split from its parent company in 2001, but maintained its contractual arrangements set up by the parent with the interstate rail transport provider. The transport provider is a private joint venture company equally owned by two publicly listed companies. Finally, the public utility company is a government-owned corporation that has been in existence for over one hundred years, but was transformed when corporatised in the mid-1990s. The public utility company was the focal organisation in this study. Due to the condentiality arrangements made with the companies, it is not possible to identify the specic organisations involved. The particular type of steel product involved is a highly specialised one, and equates to approximately 500 tonnes in weight and in excess of $A150 million in value per year. The transport provider is responsible for hauling the steel over two thousand kilometres from the manufacturer to the nal user. 339

The public utility company uses the steel product for construction and maintenance purposes in a highly distributed manner. A multi-disciplinary team consisting of three academics and four practitioners drawn from disciplines such as business management, operations research, organisational development and decision support was formed to determine the critical variables that needed in-depth exploration. This group met several times. In the initial meetings, there were large differences in opinions as to what the nature of the issues were and how they needed to be investigated. In order to develop consensus, a modied form of the Delphi technique was used (Yin, 2003). Eventually, the group decided to focus on the areas of corporate governance, infrastructure, operations knowledge, social climate, innovation and planning. Given the nature of the issues that were to be investigated, it was decided that a combination of quantitative and qualitative methods would be used in the analysis of this case study. Some research team members with a strong preference for one or the other methods initially expressed trepidation about this approach. However, when it was established as to how these methods would complement each other, and that the overall purpose was to generate a more integrated understanding, the tensions generated over research method preferences diminished. The data for the study were gathered in three distinct forms: operations analysis (SCOR model output); interviews; and review of documents from the organisations involved. The SCOR model was used to produce detailed process maps of the supply chain. As a result, it was possible to dene all the elements of the supply chain. The process maps also enabled the identication of the key personnel who were responsible for various processes in the supply chain. These employees were then interviewed. The list of topics deemed relevant by the research team was integrated into a protocol and used in semi-structured interviews. The interviewees belonged to three distinct categories: (1) Personnel with direct involvement in the supply chain, i.e. in the operations which involved moving or transforming the commodity. This group consisted of nine employees, six from the focal company and the remainder from the manufacturer. (2) Managers who made decisions which had impact upon the operational employees in the chain. These included allocation of resources and capital investment decisions. This group consisted of eleven employees, of whom nine were from the focal company. (3) Technical specialists who had responsibility for governance and risk activities with respect to the technical specications of the product at different value adding points. These included factors such as metallurgic characteristics and tolerance specications of products. Eleven employees were in this group, with eight coming from the public utility company. The transport rm was a subcontractor to the manufacturer with no direct contractual relationship to the public utility company. All transport performance information was available to the manufacturers staff. Therefore, staff in the transport rm were not interviewed. However, secondary sources of information such as annual reports and legal documents were examined in depth to gain a fuller appreciation of this rm.

A proposed integrated framework for analysing supply chains Kevin Burgess and Prakash J. Singh

Supply Chain Management: An International Journal Volume 11 Number 4 2006 337 344

All interviews were transcribed and analysed using the qualitative analysis software package called NU *DIST v4 (QSR International, 2004). This involved the coding of the transcripts using constant comparative analysis, whereby key incidents were identied and assigned to an emergent open coding scheme (Goulding, 2002). As new incidents were uncovered from the data, this coding scheme was subjected to continual re-evaluation and re-interpretation, until all interviews were eventually coded. Following the grounded theory approach, a range of constructs was developed from the data. These constructs were then placed in the seven broad category headings identied earlier. This triangulated approach provided the researchers with thick descriptions of the issues and revealed the complexity confronted by a manager trying to improve supply chain performance. The longer term aim was to develop an integrated methodology for analysing any given supply chain.

Results
The research results are presented in summary form in Figure 1. This diagram shows the broad issues and the constructs associated with each area, as well as how these are inter-related. The rest of this section provides details of each of the constructs in terms of how they were dened by the interviewees. The model is further discussed in the Discussion section. Corporate governance (CG) Construct CG1: Risk An analysis of the legal structures revealed signicant differences in the governance arrangements between the companies. The manufacturer was the least complex,

operating as a publicly listed company registered on the stock exchange. All managers highlighted how they enjoyed being out from under the control of the corporate parent and that they now felt far more empowered and more in control of their own destinies. The governance structure of the transport provider, however, highlights the role integrated hybrid rms have and are likely to play in SCM. The focal public utility rms governance structures were the most complex and had the greatest number of checks and balances within them. Such systems were clearly designed to ensure risks were minimised where possible. This, in part, may be due to the relative newness of such arrangements in government and the general community expectation of government to be as more risk averse than the private sector. A key feature is that shareholding ministers of government have the power to direct the board of a government-owned company to take non-commercial courses of action yet the Act under which the company operates specically states that the ministers are not directors. In short, this means a government-owned company may not always be compelled to maximize shareholder wealth. Unremarkably, both organisations (the manufacturer and the public utility company) appeared to be more risk averse as the amount of money involved increased. Construct CG2: Compliance Both organisations had tight compliance regimes. However, in the case of the manufacturer, these were primarily limited to quality assurance issues around manufacturing requirements. The public utility company, by contrast, had tight compliance requirements on virtually every aspect of its operations. Governance requirements appear to be generating ever increasing overheads in both organisations by way of administrative effort and resources required to maintain them. Both organisations were clearly burdened by the ever

Figure 1 Underlying conceptual framework of the integrated methodology for analysing supply chains

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increasing demands of translating legislative requirements into operational realities. Both expressed the view that the reward system seemed to be shifting towards compliance and away from innovation. Both were somewhat frustrated by the time consumed in trying to get new ideas through the various lters of governance systems but this was far more pronounced in the public utility company. Construct CG3: Policies The public utility company had far more policies than the manufacturer. At the operational level, the staff in this company expressed frustration at the number of policies they had to address. As one interviewee put it: Its hard to think about improvement when you work a fourteen-hour day, of which most is spent complying with policies. The reason for the lower level of policies in the manufacturer was not clear but it was inferred that, having broken away from the parent they perceived as overbearing, all parties saw the benet in giving each area the necessary elbow room to get things done with as little central interference as possible. Construct CG4: Stakeholder/shareholder The interviews highlighted a key difference in governance structures which was reected in the large variation in the attitudes of the staff of both organisations. The manufacturer was shareholder focused and, provided employees could demonstrate how a proposed change could add to shareholder wealth, were condent of getting a good hearing. This point was reinforced with an electronic bulletin board which displayed the latest share price. In contrast, the public utility company staff were far more conscious of all types of stakeholders and the need to consult widely in order to bring about changes. Despite such differences, it was the local changes generated by the public utility company staff at the welding facility which received the greatest praise from both organisations. This was a bottleneck and the team-based improvements made at this point assisted the productivity of the entire chain. Infrastructure (I) Construct I1: Technology Information technology was not being used in the manner expected. Usage seemed to be largely limited to emails and faxes. This was largely to conrm arrangements which had already been made by face-to-face or personal contacts. Firewalls were also seen as a reason why it would be difcult to easily use technology within the supply chain. Considerable investment had been made by the manufacturer to improve production efciency. However, the core processes of the supply chain remained stable with all rms showing a clear preference to invest in improvements aimed within their respective rms rather than across the supply chain. Construct I2: Explicit information Explicit knowledge tended to be localised rather than spread across the chain. Feral systems were being developed in isolation with no apparent integration across the network. This was found in both organisations but the incidence was far greater in the focal rm. Some users appeared to appreciate that data integrity and reliability issues would be made even more difcult by feral systems. However, they justied their actions on the basis of having unique needs and wishing to avoid having to interact with complex ERP systems, which did not give them the reports they wanted and required too much time to develop such reporting capability. 341

Records management was also found to be fragmented and contributed to both a lack of sharing of information and duplication of records. Interviewees in both organisations generally reported that they did not trust information systems, with telling responses such as no one trusts SAP. Construct I3: Location Approximately half of all respondents expressed the view that allowing the various players to come together would improve supply chain performance. However, there was little consensus on how this could be done. Over three-quarters of interviewees expressed the view that collocation of staff involved in the supply chain in a single ofce was highly desirable on two grounds. The rst concerned tacit knowledge and the view that one needed to be near those with it in order to gain it. The second issue involved efciency and speed. Being around the action meant one could pick up on issues in a timely manner and thereby avert future problems in supply chain operations. Construct I4: Design Two of the respondents expressed a view that ofces should be built around processes but did not express views on how this could be done. When asked about ofce layout policy, only four managers were even aware that a formal policy existed and only two were aware of its specic content (with one being its author). No-one from the manufacturer was aware of such a policy in their organisation. Operations knowledge (OK) Construct OK1: Tacit information It appeared that a large amount of the same data was coded differently as it moved between people across the chain. This may account for the high incidence of people reporting they relied upon social rather than technical sources for key information. Despite having extensive quality assurance systems in both organisations, very little of the knowledge on how to make the chain run smoothly was made explicit. The data overwhelmingly revealed that staff in both the public utility company and manufacturer expressed high trust in the reliability of the information offered by people and very low trust in that generated by the information systems. For example, one manager in the public utility company was mentioned 110 times by other interviewees for a range of issues from planning through to xing up operational day-today issues across the entire chain. Construct OK2: Decision support Formal decision support systems were used by some of the key players but were not being used in any obvious way by the entire chain. This nding was at odds with the expectations of at least two senior managers who expressed a strong desire to have a complete picture of the entire chain. The measurement and information systems used to manage the supply chain also had considerable variation. Despite the public utility company having an ERP in place, feral information systems were found at various parts across the chain. Construct OK3: Learning Learning practices showed a strong bias for learning on the job within both organisations. Responses such as its a complete waste of time sending them off to courses and better if I train them myself were common. Much store was placed on practical experience.

A proposed integrated framework for analysing supply chains Kevin Burgess and Prakash J. Singh

Supply Chain Management: An International Journal Volume 11 Number 4 2006 337 344

Construct OK4: Operations The SCOR model was found to be a useful tool for dening the technical system of the supply chain and identifying value points across the chain. However, almost all interviewees expressed limited utility value of the SCOR model for their specic work in the supply chain. While the SCOR model comes complete with measures, it was found to be inadequate for the purposes of planning across the supply chain. Specically, the measures used in the SCOR model appeared to be most relevant to the activities of the focal rm within the chain as opposed to the entire chain. Social climate (SC) Construct SC1: Trust All across the chain, interviewees reported the trust they placed in others to get their work done. For this reason, they were all conscious of the need to maintain good working relationships. Length of time in the role seemed to help develop trust, especially where key interdependencies were understood and the parties tried to genuinely assist each other. Interestingly, the governance systems were at odds with this position. Governance stressed the need for contracts, formal documented performance management systems, and keeping records on just about everything in case something went wrong and there was a need to establish fault. Construct SC2: Power The two organisations also appeared to generally see the relationship as roughly equal in terms of power. Both sides were willing to go to great lengths to maintain a good working relationship and avoid behaving opportunistically. Examples included not seeking liquidated damages for performance breaches despite having such power. In fact, this situation existed not only between the manufacturer and the public utility company but also between the manufacturer and transport provider. Construct SC3: Collaboration Collaboration is here taken to include all cooperative aspects of social interactions which demonstrate commitment and willingness to do the right thing and support others. This aspect was a very strong feature of this chain. All parties understood that in order to get things done at the operational level, they needed to work with each other in mutually supportive ways. Construct SC4: Interaction/participation Responses varied in that, at the operational level, interactions were frequent and egalitarian in nature. However, this was not necessarily the case with vertical interactions. Interviewees from both organisations expressed frustration at having to work up the system due to a variety of factors such as the lack of time that those above had to make themselves available and the sheer volume of governance matters which were passed on to them. Innovation (Inv) Construct Inv1: Transformational Transformational innovation was not directly detected occurring in any aspect of this supply chain. Construct Inv2: Radical While both organisations have large capital investment programs, neither made direct investments in improving the chain being examined. The manufacturers focus was aimed 342

at getting greater yields and lower waste in the manufacturing process. Both organisations had sought to make a large step improvement to the supply chain elements that they had responsibility for. But governance required certain threshold rates of return on capital to be achieved in a specied period. As these could not be realistically achieved by either the manufacturer or the public utility company, investments in new technology did not go ahead. This situation suggests that organisations that have supply chains with expensive and mature technology operating within older industries may nd it easier to justify this type of innovation in their core assets than in their supply chains. Construct Inv3: Architectural The bottleneck identied in this supply chain was the welding section in the public utility company. By making some minor modications to the use of space and work practices, the throughput of the entire chain was improved by 50 per cent. This suggests that, in this type of supply chain, activities directed at architectural innovation can deliver signicant results and improve the productivity of assets across the entire chain. Construct Inv4: Incremental There was considerable evidence that incremental innovations had been taking place across the entire chain over many years. However, as they were aimed at solving local problems, the impact on the performance of the entire supply chain was not obvious. This nding challenges the literature on small step improvements by suggesting such improvements need to be more focused on critical areas of a supply chain in order to be effective. Performance (Perf) Some evidence of improvements to aspects of this supply chain was found. Most of these improvements were in the performance of the focal rm and were in the form of operational results. New and technologically advanced plant led to increases in productivity in terms of greater yield by reducing waste. The percentage of improvement varied with the piece of plant but overall productivity gains were in excess of ten percent. In some cases, spectacular improvements were generated. For example, local improvement teams rearranged storage facilities and introduced preventative maintenance regimes with key equipment at the transhipment and welding facility (which previously had created a capacity constraint on the total system). As a result the total chain was able to put through almost fty percent more output to the end customer within the same time periods as before. Overall, changeover and setup times were also reduced by up to thirty percent which helped reduce cycle time of the total chain by approximately ve percent. At the time of the study, signicant reductions in inventory of steel carried by the focal company were not detected. Neither was any signicant improvements in the nancial results relating to the activities of this supply chain. However, all parties in the chain hoped that benets related to inventory and nance would be generated in the foreseeable future. Planning (Pl) Overcoming weaknesses in planning were often mentioned as an area which could lead to improvements. The main focus seemed to be around scheduling and forecasting. Three senior managers expressed the view that strategic planning was

A proposed integrated framework for analysing supply chains Kevin Burgess and Prakash J. Singh

Supply Chain Management: An International Journal Volume 11 Number 4 2006 337 344
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needed in order to challenge existing arrangements and to generate radical alternatives. However, as has been the case in several other areas, the organisations in this study appear to be more focused on their internal needs in this aspect as well. For example, strategic planning in the focal rm seemed to be limited to long range plans around upgrading its infrastructure rather than improving supply chain operations.

Discussion
The results described above show how the broad issues and the various constructs are dened. We postulate that these are inter-related. These inter-relationships can be best described succinctly in graphical form as a framework shown earlier in Figure 1. As shown in this gure, corporate governance, infrastructure and operations knowledge (with the SCOR model outputs embedded within this) are inter-related, and combine to produce various kinds of innovation, which in turn lead to improvements in performance. However, these relationships are moderated by social climate factors. In other words, a conducive social climate is needed if innovation is to take place as a result of these variables. Conversely, a poor social climate would stie innovation. The metaphor of a lens is used to demonstrate how the social climate factors would moderate the relationships between the independent and dependent variables in the model. Overarching all of these relationships is the role of planning. The framework in its current form can be further improved if attention is paid to two distinct areas. Firstly, the following factors need to be better understood beyond the basic ndings detailed in the previous results section: . Corporate governance as it is presently practiced inhibits innovation so adjustments in this area could free up innovative potential. . Infrastructure may be placing too much emphasis on technology as a panacea for solving all of the communication, data transmission, and information transfer requirements of organisations involved in the supply chain. The introduction of feral systems in isolation with no integration across the network challenges much of the logic driving the multi-million dollar investment both organisations are presently making in ERP systems. The role that location and physical design play in SCM is clearly not something managers appear to have thought about in any depth. . Operations knowledge appears to work well through social systems. The role of tacit knowledge and why it seems to be so highly valued needs more research. What is driving this approach needs to be determined. How it can be better utilised and supported by knowledge management and HR strategies in order to generate greater innovation also needs analysis. This in turn could assist in improving the speed at which players in a supply chain can learn and improve. . Collaborative planning is another major issue requiring urgent attention. Little is known about how to do this successfully in any large organisation, let alone between large corporations. There is a need to develop a comprehensive methodology that covers issues such as skills and competencies, social facilitation methods, technical processes, measurement systems, technical compatibilities, and mutual decision support tools. 343

Architectural innovation represents the best opportunity for innovation in this type of supply chain as the companies in the industries studied (i.e. steel manufacturing, transport and public utilities) do not have the power to bring about transformational innovation. The companies cannot justify the costs of radical improvements in their respective industries, and incremental improvements are often too small to make a difference to the entire chain.

Secondly, the multi-disciplinary nature of supply chains makes it an imperative that different discipline areas nd a common point of reference by which they integrate their ndings into a coherent whole that managers can use in purposeful ways. The framework offered in this paper offers a possible way forward. The framework presented in the paper is conceptual in nature. Practitioners can use the framework to analyse supply chains of interest to them by following the steps outlined here. The rst step is to produce a process map of the supply chain using the SCOR model to determine the technical and operational elements relevant to the supply chain, as well as to identify the key players in the chain. The second step is to assess the infrastructure that supports the activities in the supply chain and the corporate governance issues that control and regulate the behaviour of parties in the supply chains. Operational knowledge, when combined with sound understanding of infrastructural and corporate governance issues, will provide opportunities for innovative ideas for performance improvements. However, the framework suggests that innovation can only take place if the social climate is right. As a result, the third step is to determine the social climate that exists in the supply chain by specically assessing the strength of the various social relationships that exist between key parties and how they are used to manage the chain. Such an approach will give the practitioner a comprehensive technical and social understanding of the nature of the supply chain that is of interest, identify areas for improvement, and hence assist in determining where to direct change management initiatives.

Conclusions
In this study, the SCOR model provided insights into the physical characteristics and value points along the supply chain. Interview data complemented this. Together, they showed that the broad areas of corporate governance, infrastructure and operations knowledge were interrelated. Further, the manner and speed with which they contributed to innovations were moderated by the social climate that existed across the chain. The suggested integrated framework shown in Figure 1 has resulted in a richer level of discussion on the nature of relationships between parties. This framework is markedly more comprehensive than existing ones, and can be the basis upon which a practical supply chain multi-disciplinary analysis methodology is built. The framework and associated methodology need further rigorous development and validation. There are several relevant lessons that can be drawn and generalised from this study. Firstly, supply chains are complex phenomena which are best examined using multi-method and multi-disciplinary approaches. Secondly, the social system of a supply chain plays an important role in the uptake and

A proposed integrated framework for analysing supply chains Kevin Burgess and Prakash J. Singh

Supply Chain Management: An International Journal Volume 11 Number 4 2006 337 344

generation of innovation and, as such need to be given far more consideration than has been acknowledged by much of the literature to date. Thirdly, effective management of supply chains requires a methodology which allows managers to identify key elements in technical and social systems and to manage both systems in an integrated manner. Finally, the integrated framework provides a platform for future multidisciplinary research.

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Corresponding author
Prakash J. Singh is the corresponding author and can be contacted at: pjsingh@unimelb.edu.au

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