Effect of integrated supply chain management applications to organizational structure

Increasing technological improvements create many core competences in supplying many products, which would be hard for a firm to cope. This expose firms to structural uncertainty and risk. Also, it is seen that firms? self focused applications in different positions of the supply chain can increase operational uncertainty and decrease productivity along their supply chain. This reality reveals a new network business model called integrated supply chain management (SCM). SCM is a new strategic business model aiming to integrate firms? different competencies and critical business processes to increase performance and decrease structural and operational uncertainty at supply chain level. Final aim of SCM is to compete with other supply chains. The aim of this thesis is to examine and test the conceptual relationships between SCM applications and elements of the organizational structure such as decentralization, formal performance control, specialization and integration. SCM applications are connected to organizational structure. SCM is a value creating process, organizational activities are performed through organizational structure for that reason there is a need to know what kind of an organizational structure is required to create value in SCM applications. In the field research, hypothesized relationship between SCM applications and organizational structure were tested. In general it is found that SCM applications are positively correlated with the elements of organizational structure such as decentralization, formal performance control, specialization and integration. Those could be helpful in guiding business managers who want carry out SCM applications to form organizational structure. Key Words: 1) Supply chain management, 2) Network organizations, 3) Organizational structure